Does Your Home Loan Have an Interest Review Date? Here’s Why You Need to Know

Know Your Interest Review Date — If You Have One — Before It Costs You Big!

At Loan Experts, we don’t just chase low rates — we chase real results for you.

Let’s talk about a little detail that could make a huge difference in your loan: the Interest Review Date.

First, a clarification:

🎯 Not every home loan has an Interest Review Date.
If you're on a fixed-rate package, your interest stays the same during the lock-in period — no resets, no surprises.
But if you're on a floating-rate loan (especially one tied to SORA), this date decides how often your rate changes — and how much you’ll end up paying.

This often-overlooked detail could cost (or save) you thousands over the life of your loan.

🗓️ So… What Exactly Is an Interest Review Date?

If your home loan is pegged to a floating rate like 1-month or 3-month SORA, your bank recalculates your interest rate at set intervals.

The Interest Review Date is the day the bank checks the latest benchmark rate, adds your loan’s spread, and sets your new interest rate.

📍 Example:
If your review date is the 5th, and you’re on a 1-month SORA, your rate resets every month on the 5th based on that day’s SORA value.

⚖️ 1‑Month vs 3‑Month SORA: What’s the Difference?

1‑Month SORA

✅ Rate updates monthly — reacts fast when rates drop
⚠️ Less predictable — your repayment can change every month

3‑Month SORA

✅ More stable — resets only once every quarter
⚠️ Slower to reflect rate drops — you may “overpay” slightly during transitions

📅 Typical reset months: Jan, Apr, Jul, Oct (based on when your loan was disbursed)

Example: A package advertised at 0.99% looks cheap, but that rate can apply to the first year only. From the second year it is 1M or 3M SORA + 0.30%, which came to 1.29% in the offer we reviewed, and the rate then moves on each review date. Look at the whole schedule, including the spread, not the first-year rate.

🕒 When Should You Refinance?

If your lock-in period is ending soon... don’t sleep on it!

At Loan Experts, we strongly recommend reviewing your options 4 to 6 months before your lock-in ends.

Why?

🔔 Banks require 2–3 months’ notice for loan redemption
🧾 Legal and valuation subsidies may be clawed back if you exit too late
🚀 Popular packages don’t last — good deals disappear fast
💸 Banks can quietly increase the spread, even if interest rates drop

🧠 Why Reviewing Early = Bigger Savings

Let’s be honest: banks are here to protect their margins, not your wallet.

📉 When SORA drops, some banks raise the spread quietly — so your loan doesn’t get cheaper
✅ Reviewing your loan early gives you time to lock in a better deal before things change
✅ You’ll avoid clawbacks, penalty traps, and missed opportunities

✅ Must-Check List

🔲 Check if your loan is fixed or floating
🔲 If floating — confirm your Interest Review Date
🔲 Know if you’re on 1M or 3M SORA
🔲 Mark your lock-in expiry date
🔲 Compare SORA + spread, not just the headline rate
🔲 Start reviewing 4–6 months ahead
🔲 Get a free consultation from Loan Experts

📞 Talk to Loan Experts

Still unsure what kind of package you’re on?
Not sure if your bank is quietly clawing back more than they should?

Let our team at Loan Experts take a look.
✅ No charge.
✅ No pressure.
✅ Just honest, expert advice.

📲 +65 8380 2610
📧 hello@loanexperts.sg
🌐 www.loanexperts.sg

Don’t wait until your next rate reset bites.
Book a free review today — before banks quietly shift the rules