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**If you take no action, the bank automatically rolls you onto their default "thereafter" floating rate, which is almost always significantly higher and more expensive. You should actively arrange a new package 3 to 4 months before the fixed period ends.**

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### 1. What Happens Automatically

When your 2- or 3-year fixed rate and lock-in period expire, the loan does not stop. Instead, the contract states that your interest automatically reverts to a floating benchmark (e.g., 3-Month Compounded SORA) plus a high bank markup/spread (often +1.0% to +1.25% or board rates).

This sudden spike can increase your monthly repayments by several hundred dollars.

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### 2. What You Need to Arrange (3–4 Months Ahead)

Set a reminder on your calendar **4 months before your lock-in expires**. You have two main pathways:

* **Repricing (Staying with the Same Bank):**
* You request a fresh loan package (new fixed or lower floating spread) from your existing bank.
* **Pros:** Fast (takes 2–3 weeks), minimal paperwork, zero legal conveyancing fees, and usually involves just an administrative fee (S$200–S$500, often waived if your package includes "free conversion").

* **Refinancing (Moving to Another Bank):**
* You take up a new mortgage with a competitor bank offering lower rates.
* **Pros:** Often secures sharper market rates and cash rebates.
* **Requirements:** Takes 8 to 10 weeks. You must give your current bank formal notice (usually 2 to 3 months) and engage a lawyer to handle the mortgage discharge and lodgment. Incoming banks frequently subsidize these legal/valuation fees if the loan amount qualifies.

**Action Rule:** Contact your bank or a mortgage broker at the 3- to 4-month mark, compare your bank's repricing offer against the open market, and lock in the new package before the revert rate takes effect.

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Gan Eng Joo Onassis 颜荣裕, REALTOR®

MSc BIT (Middlesex, UK); BBA (UniSA)

CEA Reg No: R021244C | Mobile: (+65) 88899918 

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ANSWERS

✔1. Your loan usually switches automatically to a floating rate when the fixed-rate period ends, based on the terms of your bank’s loan agreement. Your monthly repayment may then rise or fall as interest rates change.

✔2. You don’t necessarily need to arrange a new loan, but you should review your options before the fixed period expires. You can ask your existing bank for a better package (repricing) or compare another bank’s offer (refinancing).

✔3. Start checking 3–4 months before expiry. Compare interest rates, fees, lock-in periods and any penalties so you have time to switch if it makes financial sense.

“Plan ahead so you stay in control of your finances.”

WhatsApp me at >> ✔✔9856 9255 or through this link.:https://wa.me/6598569255.
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Hi there!

This is something every homeowner taking a fixed-rate mortgage should be aware of.

**When your fixed-rate period ends, your housing loan does not end. The interest rate will normally switch automatically to the variable rate specified in your original loan agreement.**

Depending on the package, this could be a SORA-pegged rate or another reference rate determined by the bank.

You generally don't need to arrange anything for this contractual rate change to take effect. However, **that doesn't necessarily mean the new rate will be the most competitive available.**

I would recommend reviewing your mortgage approximately 3 to 4 months before the fixed-rate period expires.

You generally have three options:

1. **Continue with your existing package** if the subsequent interest rate remains competitive.
2. **Reprice with your existing bank** by switching to another package they offer.
3. **Refinance with another bank** if a more attractive package is available and the potential savings justify any associated costs.

Do check the lock-in period, notice requirements and any applicable fees before making a decision.

**My advice is not to wait until your monthly instalments increase before reviewing your mortgage.**

May I ask which bank your housing loan is with and when your fixed-rate period is expiring?

I'd be happy to connect you with a mortgage banker who can help compare the available packages and assess whether repricing or refinancing would be worthwhile.

Best regards,
**Geryl Lim**
CEA Reg. No. R014783H
WhatsApp: 9278 7772  Read More

Hello! It usually goes to a floating rate after the first few years (it will be written in your loan document), unless you choose to refinance it after the fixed period.

I'm a Harvard graduated real estate agent with a degree in economics, and have supported clients on more than $1 billion in transactions.

I monitor and study the interest rates trends carefully and would be happy to advise on the current situation, the US Fed's latest decision this week affecting Singapore's rates and what you might expect in the near future.

Feel free to drop me a note and we can discuss further what might be the best route for you to take as far as your loan options are concerned.

Kay Cloud
The Harvard Educated Agent
Propnex Realty Pte Ltd
cloud@propnex.com
Tel: (+6.5.) 8.5.6.7.4.5.8.5
Whatsapp -> https://wa.me/6585674585 Read More