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Refinance Cashback in Singapore: How It Works and What It Costs

By KAPVOY Advisory·30 October 2026
Refinance Cashback in Singapore: How It Works and What It Costs

Refinance cashback is a cash reward, or a rebate against your legal and valuation fees, that a bank pays when you move your home loan to it. It can make a switch cheaper, but it is rarely the main reason to switch. The interest rate, the lock-in terms and any clawback decide whether you actually come out ahead. Below we explain how cashback works for HDB and private property, what can cancel its value, and how to check the numbers yourself.

TL;DR

  • Cashback is a one-off reward or fee rebate for completing a refinance. It usually has minimum loan sizes and conditions attached.
  • One major bank's published figures: S$2,000 for HDB loans of at least S$300,000 and S$2,300 for private property loans of at least S$500,000. Other banks differ.
  • Legal and valuation fees, early redemption fees of about 1.5% and clawbacks can wipe out a cashback offer.
  • Compare total interest and costs over the time you expect to keep the loan, not the headline rate or the cash on offer.
  • A broker can compare many lenders at once. We charge only when your financing is successful.

Table of Contents

What refinance cashback means for a home loan

When you refinance, you close your current home loan and take a new one, usually with another bank. That process needs notice to your current lender, a property valuation and conveyancing by lawyers. Those steps cost money.

Banks compete for your loan, and one way they do it is by returning some of that cost. In Singapore this shows up in three common forms:

The label differs from bank to bank, but the idea is the same. You get something back at the start, and in return the bank expects you to stay for the lock-in period.

How much cashback can you expect?

Amounts depend on the bank, the property type and the loan size. One major bank publishes a S$2,000 cash reward for completed HDB refinancing of at least S$300,000, and S$2,300 for completed private property refinancing of at least S$500,000. Its minimum home loan amount is S$100,000. The page does not say when or how the reward is paid, so ask for that in writing.

Other banks run their own offers, and they change often. Treat any figure you read online, including these, as a starting point and ask for the current offer letter.

Two things to keep in mind:

  1. Cashback is capped and tiered. Offers are usually tied to a minimum loan amount. A smaller outstanding loan may qualify for less, or nothing.
  2. Cashback is negotiable. Fees and rebates can often be improved if you ask, particularly when you hold a competing quote.

Who is eligible

Eligibility has two parts: what the regulator allows, and what each bank requires.

The regulatory side

The Monetary Authority of Singapore (MAS) sets the rules banks follow for residential property loans in Notice 632, last revised in August 2025. For refinancing, the useful point is that borrowers are exempt from TDSR, MSR and LTV limits when refinancing owner-occupied properties. That helps you explore options once your lock-in ends.

The exemption has a limit: it covers refinancing of the existing loan. If you want to take out extra cash, the normal rules for new borrowing apply. We cover the debt-servicing side in our guide to the 55% TDSR cap and how documents affect approval.

Loan limits you will meet

For bank loans, LTV limits are 75% or 55% with no outstanding housing loan, 45% or 25% with one, and 35% or 15% with two or more. The lower tier applies when the tenure is long or the loan runs past age 65. HDB loans are capped at 75% of a new flat's price or a resale flat's lower price or valuation.

LTV limits by outstanding housing loans

LTV depends on the property's value, so the valuation matters. If you want to see how an independent valuation changes the ratio, this explainer on loan to value ratio and valuation walks through the logic with Australian examples. The arithmetic is the same idea you will see in a Singapore bank's valuation.

The bank side

Banks also set their own conditions for the cashback: a minimum loan size, a property type, and often a requirement that the loan has not been with them before. Preferential rates can come with cross-sell conditions too. Banks often tie headline rates to a minimum monthly salary credit or inflow into specific accounts. If you do not meet them, the real rate you pay is higher than the advertised one.

The costs that can cancel the cashback

A cashback of S$2,000 sounds good until you list what leaving your current loan costs. The main items:

| Cost | What it is | What to check | |---|---|---| | Legal fees | Lawyer's fees for conveyancing | Whether the new bank subsidizes them | | Valuation fee | Fee for the property valuation | Whether it is rebated | | Early redemption | About 1.5% of the remaining loan if you exit during lock-in | The lock-in end date on your current loan | | Notice period | Insufficient notice may require interest in lieu | The notice period in your loan letter | | Other bank fees | Cancellation, prepayment, reimbursement or conversion fees | Ask for the full list | | Clawback | Subsidy or rebate you may have to repay if you leave early | Dates and amounts, in writing |

For HDB flats, legal and valuation fees are estimated at S$3,000 and above, which is why a rebate matters. It may offset them, not exceed them.

Lock-in and clawback are two different clocks

Lock-in is the period when leaving costs a penalty. A clawback is the period when you must repay a subsidy or cashback if you leave. They are separate terms, and package terms vary, so confirm both with each lender. Major banks typically offer 2-year fixed or SORA-linked floating packages with 1.5% lock-in penalties.

If you refinance twice in a short time to collect cashback each time, a clawback on the first can hit you on the second. Read our note on how lock-in periods work and how to plan around them and our warning on subsidy traps, MAS rules and clawbacks.

Check the numbers before you switch

The method is simple. Compare total interest and costs over the period you expect to keep the loan, using the same opening balance and remaining tenure for both options. A quick break-even estimate divides your net switching costs by your projected monthly interest savings.

Here is a made-up example to show the steps. The numbers are for illustration only, not an offer.

  1. Legal and valuation fees: S$3,000.
  2. Cashback from the new bank: S$2,000.
  3. Net switching cost: S$1,000.
  4. Estimated monthly interest saving on the new package: S$150.
  5. Break-even: S$1,000 divided by S$150, about 7 months.

Now change one input. If the new package has a 1.5% early redemption fee when you leave in year two, on a S$400,000 balance that is S$6,000. The saving over the first two years is S$3,600 (24 months at S$150), less S$1,000 switching cost, so S$2,600. A S$6,000 exit fee is more than that. The cashback never mattered; the exit terms did.

Banks are often within 5 to 15 basis points of each other, so the real total cost, including fees, cross-sell conditions and lock-in, tends to decide the winner. Ask both lenders for an itemized sheet. Professionals advise getting itemized exit-cost sheets rather than verbal assurances.

Our guide on repricing versus refinancing and how to calculate net savings has a longer worked method.

Check the numbers before you switch — overview diagram

Refinancing for cashback or cashing out equity

These are different goals.

Cash-out is not a cashback. You are borrowing more, and the debt-servicing rules apply to the extra amount. Business owners sometimes use it for working capital. If that is your plan, compare it with a dedicated business term loan or working capital loan before you put your home behind the debt. For private homes, our private property refinancing guide covers both routes.

When to start

Start early. Notice requirements, valuation and legal work take time, and a missed lock-in end date can cost you a month of the higher rate or a penalty. For HDB owners, we suggest starting 3 to 6 months before the lock-in ends. If you are unsure whether a fixed or floating package suits you, three questions decide it.

A step-by-step checklist

  1. Find your lock-in end date, notice period and outstanding balance in your loan letter.
  2. Ask your current bank for its repricing offer. Repricing keeps you with the same bank, so there is usually no legal or valuation work.
  3. Gather quotes from other lenders, each listing legal and valuation charges, administrative fees, penalties, notice requirements and benefits that must be returned.
  4. Run the break-even calculation for the period you expect to hold the property.
  5. Check cross-sell conditions, such as salary credit, that the headline rate depends on.
  6. Confirm the clawback period and amount in writing.
  7. Give notice only once the new offer is signed.

Our view: cashback is the smallest line on the page

We see many homeowners start with the question of who gives the most cashback. We think that is the wrong first question.

Cashback is paid once. The interest rate runs for years. A bank that gives S$500 more upfront but charges a slightly higher rate, or imposes a longer clawback, costs you more than it gives. That is why we ask clients three things first: when your lock-in ends, how long you expect to keep the property, and what your cash flow needs are.

Then we compare lenders on total cost. Because we have no lender referral arrangements, the comparison is not shaped by who pays us. Our fee is charged only when your financing succeeds, and there is no upfront cost or consultation fee. If repricing with your current bank is the better choice, we will say so.

— Viknesh

Let us compare lenders for you

We compare more than 30 banks and non-bank lenders for property refinancing, HDB loans, private mortgages and equity release. We prepare your application, submit it to several lenders at once and give you a personal broker contact throughout. Our fee is 3 to 5% of the approved loan amount, charged only on successful funding.

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Start with our property refinancing page, or see how we handle HDB loan comparisons and private property mortgages. Free eligibility check on kapvoy.sg →

FAQ

Is refinance cashback taxable in Singapore?

We do not give tax advice, and we have not found an official ruling on this specific point. Ask the bank how it classifies the payment, and check with the Inland Revenue Authority of Singapore or a tax adviser if you are unsure.

Can I keep the cashback if I sell my home soon after?

Not always. Many offers include a clawback period during which you repay all or part of the subsidy if you redeem the loan early. Early redemption fees of about 1.5% may also apply during lock-in. Get both dates and amounts in writing before you sign.

Is cashback better than a lower interest rate?

Usually a lower rate matters more, because it saves money every month for years while cashback is paid once. With banks often only 5 to 15 basis points apart, the fees and conditions can decide it. Run a break-even calculation for both offers.

Do HDB and private property owners get the same cashback?

No. Offers differ by property type and loan size. One bank's published figures are S$2,000 for HDB and S$2,300 for private property, each with a minimum loan amount. Check the current terms with each lender.

Sources

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