How to Refinance HDB Loan to Bank Loan


Are you looking forward to refinancing your HDB loan? There are two options for refinancing HDB loans: convert your HDB loan into a bank loan or switch from one bank to another. If you opt for the first option, you won’t be eligible to refinance with HDB anymore. Trading your current mortgage loan for a new bank loan will come with a different interest rate and a new principal. Therefore, you should make a sound decision before refinancing your HDB loan. If you need to refinance your HDB loan, visit There are various benefits of refinancing your HDB loan: remove private mortgage insurance, reduce the interest rate, lower monthly repayments, and debt consolidation. Below are tips for refinancing HDB loans to bank loans:

1. Compare Packages and Mortgage Rates

Before refinancing your HDB loan, assess available packages and compare mortgage rates. If you’re overwhelmed by the current choices, consider hiring a professional mortgage specialist. Experts will help you choose a bank loan that suits your needs. In addition, mortgage professionals will help you understand the different loan tenures, interest rates, repayment terms, and fees.

2. Gather Necessary Documents

When you’re refinancing an HDB loan into a bank loan, you’ll need certain documents, especially in the application stage. Below are some of the key documents that you should present:

– Employment contract

– CPF transaction history, especially for the last twelve months

– Passport or NRIC

– Latest notice of assessment

– Current payslips ( minimum of three payslips)

– Stamp certificate and tenancy agreement

– Latest central provident fund (CPF)

– HDB financial information

– HDB flat details

Preparing these documents can be overwhelming. Therefore, you should consider hiring mortgage experts.

3. Lock in your Interest Rate

If you’re eligible for a bank loan, consider locking your current interest rate. An interest rate lock can last for approximately 15 days to 60 days. There are certain aspects that influence the rate lock, such as the lender, location, and loan type. If you fail to lock in your interest rate, the rate lock can be extended, thus increasing your costs. Sometimes, you may be given an option to float your interest rates.

4. Valuation Assessment

Before the approval of the home loan refinancing application, the bank will determine the value of your property. The bank will hire a professional surveyor who’ll determine the current market value of your home. Some key aspects that’ll influence the value of your property include condition, property size, land size, location, and age of the property. The refinance appraisal plays a significant role in determining the options available to you. For instance, if you’re refinancing an HDB loan to take cash out, your property’s current value will determine the amount you’ll get.

5. Select a Reliable Law Firm

Refinancing an HDB loan is a tedious and daunting process. Therefore, you should consider investing in a reputable law firm to help with the paperwork. Hiring a law firm will give you peace of mind because you won’t worry about certain documents.  

6. Closing On Your New Loan

After documentation, home appraisal, and underwriting, the bank will send you a closing disclosure. You’ll be expected to sign various documents in the contract. The closing for a refinance can take at least one month.

In conclusion, there are various reasons for refinancing your HDB loan, such as lower your interest rate, changing loan terms, changing loan type, and cashing out your equity.


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