Cash-Out Refinancing in Singapore: How It Works & Key Rules
Updated: 19 Oct 2026
Written byAfina Najib
Senior Content Editor - Singapore
Disclaimer: The information on this page is for general educational and informational purposes only and should not be considered financial or investment advice.
In short: if you own a private property with enough equity, you can typically borrow up to 75% of its market value, minus your outstanding loan and the CPF you’ve used (plus accrued interest). Home loan rates are currently far lower than unsecured borrowing, but your home is on the line. You’ll also need to pass TDSR, and you can’t use the cash to buy another residential property.
Is cash-out refinancing right for you?
About cash-out refinance
In Singapore, cash-out refinancing means taking out a new loan against your property and receiving part of it as cash. Banks may also call it an equity term loan, and MAS refers to it as a mortgage equity withdrawal loan.
Unlike a standard rate-and-term refinance, which only changes your loan’s interest rate or tenure, a cash-out refinance gives you a new loan that’s larger than your existing mortgage, based on your home equity. The difference is paid out to you as cash.
This refinancing option is only available for private properties. HDB flats can’t be used to cash out equity.
Personal Loan Rates: Compare Top Lenders in Singapore
Loan | Annual Interest Rate | SingSaver Reward | Monthly Repayment | Total Cost of Loan | EIR | ||
|---|---|---|---|---|---|---|---|
 | UOB Personal Loan | From 1.00 % p.a. | S$320 | S$429 | S$450 | From 1.93 % p.a. | |
 | Trust Bank Instant Loan | From 1.00 % p.a. | S$300 | S$429 | S$450 | From 2.28 % p.a. | |
 | DBS Personal Loan | From 1.00 % p.a. | S$650 | S$429 | S$450 | From 2.32 % p.a. | |
 | GXS FlexiLoan | From 1.08 % p.a. | - | S$430 | S$486 | From 2.02 % p.a. | |
 | Standard Chartered CashOne Personal Loan (*Existing Customers) | From 0.90 % p.a. | S$210 | S$428 | S$405 | From 1.75 % p.a. | |
 | MariBank Instant Loan | From 1.28 % | - | S$433 | S$576 | From 2.46 % p.a. | |
 | CIMB Personal Loan | From 1.00 % p.a. | S$320 | S$429 | S$450 | From 1.94 % p.a. | |
 | EZ Loan | 9.88 % | - | S$540 | S$4,446 | 9.88 % p.a. |
How much can you borrow with a cash-out refinance?
How much you can borrow depends mainly on the loan-to-value (LTV) limit. For bank loans in Singapore, the LTV limit is up to 75% of your property’s current market value if this is your only outstanding property loan. If you have other outstanding property loans, the limit typically drops to 45%.
Calculating how much you can cash out
Use this formula: (LTV limit × market value) − outstanding loan − (CPF used + accrued interest).
Here’s an example:
- Market value of your home: S$1 million
- Outstanding loan amount: S$300,000
- CPF used plus accrued interest: S$150,000
With a 75% LTV limit, the calculation works out as follows:
S$750,000 (75% of market value) − S$300,000 (outstanding loan) − S$150,000 (CPF used plus accrued interest) = S$300,000
The loan amount is based on the bank’s current valuation, not the price you paid for the property. Your income also matters, because the bank will cap the loan if your debt repayments would exceed TDSR limits (more on this below).
How to get a cash-out refinance in Singapore
- Get a property valuation: Ask your bank or a licensed valuer for your property’s current market valuation. Many banks provide this free on request. Your IRAS annual value isn’t suitable, because it’s a rental estimate used for property tax.
- Review your outstanding loans: Check the balance on your current mortgage, and whether you’re still within a lock-in period.
- Check your CPF usage: Log in to CPF to see how much you’ve used for the property, plus accrued interest. This amount is deducted from what you can cash out.
- Calculate the maximum you can take out: Multiply your valuation by the LTV limit (typically 75%), then subtract your outstanding loan and your CPF used plus accrued interest. For example, a S$800,000 property with a S$400,000 balance gives S$600,000 − S$400,000 = S$200,000, before the CPF deduction.
- Compare interest rates: Packages vary between banks, so compare both fixed and SORA-pegged floating options, as well as lock-in terms and fee subsidies.
- Submit an application: Provide income documents, property documents and your CPF statement. Expect the process to take two months or more.
Saver-savvy tip
Get your bank valuation and CPF figures before you shop around. These two numbers decide how much you can actually cash out.
Eligibility requirements for cash-out refinance in Singapore
Type of property
Generally, only private properties are eligible, along with Executive Condominiums (ECs) that have passed the 5-year Minimum Occupation Period (MOP), subject to the bank’s policy. HDB flats are not eligible.
CPF-funded portions are excluded
Any part of the property paid for with CPF can’t be cashed out. The amount you’ve used, plus accrued interest, is subtracted when the bank works out how much you can borrow.
Total debt servicing ratio (TDSR)
TDSR limits your total monthly debt repayments to 55% of your gross monthly income, including the new loan. Banks must assess the new loan at the higher of a 4% medium-term floor rate or the actual rate, so a low package rate won’t raise your borrowing limit.
TDSR doesn’t apply if the equity withdrawal, together with any other loan on the same property, stays within 50% of the property’s current value.
What the cash can be used for
You can use the cash for renovations, education, business capital or paying off higher-interest debt. MAS rules don’t allow it to fund the purchase of another residential property.
Before You Compare
Get a bank valuation, not your annual value
Banks lend on market valuation. IRAS’s annual value is a rental figure for property tax only.
Subtract CPF used plus accrued interest
CPF-funded portions can’t be cashed out, and the accrued interest is deducted too.
Check your TDSR headroom first
Banks test your debts at a 4% floor rate, so actual low rates won’t raise your limit.
Ask if your cash-out stays at or below 50% LTV
Equity withdrawals within 50% of property value are exempt from TDSR.
Factor in fees and lock-in penalties
Valuation, legal fees and early-repayment penalties can shrink what you actually receive.
Home loan rates in Singapore (October 2026)
| Package | Years 1–2 | Year 3 onwards |
| DBS 2-Year Fixed | 2.33% | 3M SORA + 1.00% |
| OCBC 2-Year Fixed | 2.40% | 3M SORA + 0.65% (Year 3), 3M SORA + 1.00% (Year 4) |
| Lowest floating (residential) | 3M SORA + 0.20% (about 1.43%) | 3M SORA + 0.40% (Year 3), 3M SORA + 0.75% (Year 4) |
Note: Indicative rates for the week of 12 Oct 2026. 3M compounded SORA was 1.24% as of 14 Oct 2026. Rates change frequently, so confirm with the bank.
Advantages and disadvantages of a cash-out refinance
A cash-out refinance can be a powerful financial tool, but it’s important to weigh the pros and cons before deciding.
Advantages
- Access to large sums of money: A cash-out refinance can unlock a significant amount of cash for major expenses like debt consolidation, home renovations or education.
- Lower interest rates: Home loan rates in October 2026 sit far below credit card interest and most unsecured loans, which could save you a lot of interest over time.
- Improve creditworthiness: Using the cash to pay off credit card balances in full may help improve your credit score.
Disadvantages
- Risk of losing your home: Your property is the collateral, so missing repayments could lead to foreclosure.
- Higher monthly payments: A larger loan means higher monthly repayments. If you’re on a floating rate, repayments will also rise when SORA goes up.
- Fees and closing costs: Valuation fees, legal fees and any lock-in penalty on your current loan can reduce the cash you actually receive.
- Restrictions on use: You can’t use the cash to buy another residential property.
>> Read more: When Should You Start Planning To Refinance Your Mortgage?
Other options you can consider
If a cash-out refinance doesn't quite fit your needs, there are alternative ways to tap into your property's value.
Home equity loan
A home equity loan allows you to borrow a lump sum of money using the equity you've built up in your home. This equity is the difference between your home's current market value and the outstanding balance on your existing mortgage.
Because it's secured by your property, lenders often offer more favourable interest rates compared to unsecured loans. However, your home serves as collateral, so responsible repayment is crucial.
Home equity line of credit (HELOC)
A home equity line of credit (HELOC) provides a revolving credit line secured against your home, allowing you to borrow funds as needed, up to your credit limit. They typically have a draw period, during which you can withdraw funds, and a repayment period.
You can use this option for various purposes, including home repairs, debt consolidation, or education expenses.
Is a cash-out refinance advisable?
A cash-out refinance suits private property owners who need a large sum at home-loan rates with predictable repayments. Typical uses include major renovations, especially if you’re looking to increase the value of your home before selling, or clearing high-interest debt.
It’s less suitable if you need a smaller amount quickly, are still in a lock-in period, or have little TDSR headroom. Before proceeding, make sure you can comfortably manage the larger loan if rates rise.
Frequently asked questions about cash-out refinance
Private property owners take out a new loan that’s larger than their existing mortgage and receive the difference as cash. It’s capped at up to 75% of market value, minus the outstanding loan and the CPF used plus accrued interest.
Compare fixed and SORA-pegged packages across multiple banks, and look beyond the headline rate at lock-in periods, rates after the promotional period, and legal or valuation fee subsidies.
It typically takes at least two months, depending on the lender and your application. Keep the when and how of refinancing your home loan in mind when planning.
Generally, no. The cash you receive is borrowed money, not income, so it isn’t taxed as income in Singapore.
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About the author
Afina Najib
Spending most of her young writer's phase working as a freelancer, Afina's written for various industries ranging from e-commerce, travel to health and finance. Her expertise lies in her ability to make complex subjects like finance easy to consume for everyday readers.
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.