It has been 3 years since the purchase of my first property in Singapore. At the point of purchase, the loan that I signed up for had a 3 year lock-in period. Now that the lock-in period is up, I am looking at ways to reduce my interest expenses.

To do so, I have decided to refinance my existing loan.  At the time of writing, I am still in the midst of restructuring the loan.

It is now a good time for me to examine the process. I hope to share what I have done right and what I could have done better.

#1 Benefits of refinancing

Interest rates for most bank loans will increase sharply after the lock in period. By refinancing with a new loan, you will end up with lower interest rates and hence reduce your interest expense.

In my case, the existing rates are as follows:

  • First year: 1.2% fixed rate