Still want that low mortgage rate? Here's how you might take it with you when you move

For many homeowners who locked in mortgage rates below 2% in the years before interest rates began climbing, the idea of giving up that rate feels not just inconvenient—it feels economically irrational. A decade ago, fixed mortgage rates in Singapore hovered around 2.5% to 3%. Then came the COVID-19 pandemic, and with it, a wave of global central bank action that drove rates to historic lows. Many borrowers secured rates as low as 1.3% to 1.8%.

But those days are over.

As the US Federal Reserve raised its benchmark rate and Singapore followed suit via SORA-linked increases, mortgage rates in 2024 and 2025 have floated closer to 3.5% or more. For borrowers contemplating a home move, the question naturally arises: can I bring my low interest rate with me? It’s a feature known as mortgage portability. But in Singapore, it's neither common nor easily granted.

Mortgage portability allows borrowers to transfer the terms of their existing home loan—including the interest rate, remaining tenure, and repayment structure—to a new property if they decide to sell their current home and buy another.

This function is more established in Western markets like the UK or Canada, where long-term fixed-rate mortgages are standard and refinancing costs are high. In Singapore, the vast majority of home loans are floating or fixed for a short tenure (typically two to three years), and the refinancing process is often more straightforward.

Even so, a few private banks and financial institutions in Singapore do offer some version of portability. However, eligibility is narrow, and the conditions are far from generous. Borrowers looking to hold on to their 1.6% fixed-rate deal may be in for a surprise when they ask their bank about taking it with them.

Portability wasn't always top of mind for homeowners. When rates were consistently low, switching to a new home simply meant taking up a new loan at competitive rates—no friction, no fear. But the rate environment has shifted dramatically.

In the current climate, the difference between a 1.8% mortgage and a 3.8% mortgage can translate into thousands of dollars in additional interest payments each year. For a $600,000 loan with a 25-year tenure, that rate jump could increase monthly payments by over $600, depending on the loan structure.

It’s not just about cash flow. For some borrowers, especially those buying at higher prices, a higher rate may affect their Total Debt Servicing Ratio (TDSR) and reduce their ability to qualify for a new mortgage at all. This creates a double constraint: financial pressure on monthly budgets and structural pressure on the ability to move.

The dream of upgrading to a larger unit or moving to a better location is now tempered by hard math.

The short answer is: sometimes, but not as a standard feature.

Unlike in Canada or the UK, most Singapore mortgage contracts do not include a guaranteed portability clause. And even when banks offer this feature, it typically requires all of the following:

• Same borrower(s): The borrower(s) must be the same for the new mortgage.
• Similar or lower loan quantum: The new loan cannot exceed the current outstanding loan.
• Tight timeline: The sale of the old home and the purchase of the new one usually must complete within 3 to 6 months, often concurrently.
• Subject to credit review: Some banks still require income documents, updated credit assessments, and compliance with current TDSR rules.

Moreover, not all loan packages are eligible. Some fixed-rate loans, especially promotional ones from the low-rate years, may not allow portability at all.

In practical terms, this means the majority of homeowners in Singapore cannot assume that they’ll be allowed to transfer their low mortgage rate, even if they stay with the same bank.

Portability does not apply to HDB Concessionary Loans. These government-backed loans are structured as new, standalone loans tied to each specific HDB property. If you sell one HDB flat and buy another, you will need to reapply for a new HDB loan. Eligibility is not guaranteed—factors such as household income, ownership history, and age may disqualify applicants.

Once a borrower refinances from an HDB loan to a bank loan, the switch is irreversible. They cannot return to the concessionary scheme, even if they remain within the public housing system.

For this reason, HDB owners who previously refinanced to take advantage of a 1.3% promotional bank rate now face a difficult trade-off if they wish to move. They must apply for a fresh bank loan at a much higher rate, reset their tenure, and navigate new stress tests under today’s higher interest climate.

Consider Ravi and Mei Lin, who bought a resale condo in 2021 and locked in a 1.65% fixed rate for five years. By 2025, with a new baby on the way, they decide to move to a larger unit closer to Mei Lin’s parents.

They still have $620,000 outstanding on their mortgage and three years left at 1.65%.

Mei Lin calls their bank, hopeful that they can "port" their existing mortgage to the new unit. The bank informs them that the loan is not eligible for portability because the new property will cost more and require a higher loan quantum. Even if they were buying a smaller unit, the bank says the portability option requires the sale and purchase to complete on the same day—a logistical challenge in Singapore’s tight property transaction cycles.

Instead, the bank offers them a new package at 3.7%.

For Ravi and Mei Lin, this means facing higher monthly repayments, a shorter effective tenure if they wish to retire on time, and the need to requalify under updated income thresholds.

For most Singapore borrowers, the answer won’t be portability—but trade-offs.

Here are a few strategies being used today:

1. Delay the move
Some homeowners choose to postpone relocation or upgrading plans altogether, especially if they have remaining tenure under a low fixed rate. Renovating or reconfiguring their current property may be more cost-effective.

2. Early refinancing
Borrowers nearing the end of a fixed-rate period may proactively lock in another fixed-rate package now—even if they are not yet moving. This secures a more favorable rate before further increases, or before their lock-in ends.

3. Use bridging loans cautiously
If a simultaneous sale and purchase is too tight to manage, a short-term bridging loan may help. However, these come at higher interest rates and can add pressure if property sales are delayed.

4. Partial repayment
Reducing the loan amount needed for the new property by using CPF or cash top-ups can limit the exposure to high rates. This is most feasible for buyers with significant equity in their existing home.

5. Consider tenure
If rates are rising, borrowers may consider shortening loan tenure instead of stretching it out. While monthly payments are higher, the total interest paid over the life of the loan may be significantly lower.

If you're planning to sell your home and buy another, ask these questions early—well before committing to a purchase:

• Does your existing mortgage allow for portability?
• Is the feature automatic or subject to approval?
• Can the same rate apply to a higher loan amount?
• Are there time constraints between sale and purchase?
• Will there be a reassessment of your income and liabilities?
• What happens if you miss the eligibility window?

Also check whether there are prepayment penalties or lock-in periods still in effect on your current loan. Even if portability is technically possible, the fine print may make it impractical.

In the UK, portability is commonly advertised. Yet even there, the actual usage rate is low. Borrowers often find that the paperwork, reapplication rules, or top-up terms dilute the original benefit. In Canada, similar issues arise—especially when property prices rise and borrowers require more financing than the original loan.

In both countries, consumer advocacy groups have called for clearer disclosures about portability. Singapore, by contrast, treats it as an optional feature, not a market norm. In a city-state with high homeownership, tight regulation, and relatively fast refinancing cycles, portability has never been structurally emphasized.

There’s an open question here for policymakers. Encouraging portability could reduce financial inertia and give households more flexibility to move without incurring higher costs. It might reduce housing gridlock, especially for families needing to right-size due to caregiving or childcare reasons.

But it may also expose banks to increased interest rate risk if old low-rate loans persist while cost of funds rises. Moreover, allowing portability at scale would require significant back-end system harmonization among banks, conveyancing firms, and credit bureaus. For now, portability remains a niche tool—one that works for a lucky few but cannot be relied upon by most.

A low mortgage rate can feel like an anchor of stability. But if you treat it as immovable, it may hold you back from important life decisions—like moving closer to family, improving quality of life, or shifting work arrangements. Portability, if available, is worth exploring. But it’s not a right, and not a substitute for full financial planning.

If you’re thinking of moving, start by modelling your full housing cost under new rates—not just monthly payments, but cash flow buffers, CPF drawdowns, and tenure feasibility. Then speak to a licensed mortgage broker or bank officer. Treat portability as a bonus—not a baseline. In the end, keeping your low rate matters. But aligning your home, finances, and future plans matters even more.