Hidden Costs of Refinancing vs Repricing: Which Should You Choose? You Need to Know
For Singapore homeowners eyeing lower rates in 2026, repricing often wins for speed and low hassle with fees around S$800, while refinancing offers better rates but hidden costs exceeding S$2,000—choose based on your loan size and savings potential.[1][2]
This cluster article dives into the hidden costs of refinancing vs repricing which should you choose you need to know, building on our pillar guide to Singapore home loans. At Homejourney, we prioritize your safety and trust by verifying rates from DBS, OCBC, UOB, and more, helping you avoid pitfalls in a trusted environment.
Refinancing vs Repricing: Key Differences Explained
Repricing means switching to a new interest rate package with your current bank, like moving from a 3% to 1.6% fixed rate at DBS.[1][5] It's quick—approval in 1-3 days plus a 1-month notice—and skips legal work or valuations.[2]
Refinancing, or the refinance difference, transfers your loan to a new bank, such as from OCBC to HSBC for better SORA-linked rates. It takes 13 weeks and involves more steps but unlocks competitive packages across banks.[1][2]
Repricing suits those staying put (switch banks or stay), while refinancing maximizes savings if rates differ significantly. Use Homejourney's bank rates page to compare real-time options from all major banks safely.
Hidden Costs Breakdown: What You'll Really Pay
Don't overlook fees— they can erase months of interest savings. For reprice mortgage, expect administrative fees of S$300-S$1,000, often waived for loyal customers or loans over S$200k (HDB) or S$450k (private).[2][3]
Refinancing hits harder: legal fees (S$1,500 HDB, S$1,800+ private), valuation (S$150-S$700), plus potential fire insurance renewal.[2] Banks like UOB or Standard Chartered subsidize these for loans above S$300k (HDB) or S$400k (private), but watch 3-year clawback penalties on subsidies.[2]
Real example: Repricing a S$500k HDB loan at DBS costs ~S$800 (or waived), saving S$500/month at 1.6% vs 3%.[5] Refinancing to Maybank might save more but nets S$2,500 upfront after subsidies.[1][2]
| Refinancing | Repricing | |
|---|---|---|
| Costs (no waiver) | S$2,000-S$3,000 | S$300-S$1,000 |
| Timeline | 13 weeks | 5 weeks |
| Subsidy Threshold | >S$300k HDB / S$400k private | Often full waiver |
| Clawback | 3 years on subsidies | Rare |
Banks subsidize more in 2026's low-rate environment (rates at 3-year lows).[5] Check Homejourney's mortgage calculator for your break-even.
SORA Rates and Timing Your Move
Singapore's benchmark, SORA, drives most floating rates—track 3M/6M compounds on Homejourney for perfect timing. With rates dipping to 1.48%-1.6% for 2-3 year fixed packages, act before lock-ins end (3-6 months ahead for refinancing).[2][5][7]
The chart below shows recent interest rate trends in Singapore:
As seen, SORA fell sharply in late 2025, boosting refinancing activity among HDB owners.[5][7] Reprice 1 month before lock-in ends; refinance earlier to shop banks like CIMB or RHB.[2]
Break-Even Analysis: Is It Worth It?
Calculate break-even: (Fee savings needed) / Monthly savings = months to recover. Example: S$2,500 refinancing fees, S$400/month savings = 6.25 months break-even.
- Input current loan on Homejourney bank-rates.
- Compare rates (e.g., DBS 1.6% fixed vs UOB SORA +0.5%).
- Add fees: Subtract subsidies, factor clawback risk.
- If break-even <24 months, proceed—especially with >2 years left.
For small loans (<S$500k), reprice; larger ones favor refinancing for 0.2-0.5% better rates.[8] See our related article: How to Calculate If Refinancing is Worth It | Homejourney .
Step-by-Step: How to Reprice or Refinance Safely
For Repricing (Stay with Bank):
- Contact bank (e.g., OCBC hotline) post-lock-in.
- Choose package—fixed for stability.
- Pay/waive fee; effective in 1 month.
For Refinancing (Switch Banks):
- 3-6 months pre-lock-in: Compare on Homejourney.
- Submit multi-bank app via Singpass—get offers from DBS to Citibank instantly.
- Bank handles valuation/lawyer; you attend remotely.
- Close in 13 weeks, track via Homejourney dashboard.
Pro tip: Negotiate cash rebates (up to S$3k+). Homejourney's brokers connect you fee-free. Link to pillar: Explore full Singapore Home Loans Guide.
When to Choose Each: Decision Framework
Choose Repricing if: Short timeline, small loan, happy with current bank, minimal savings needed.
Choose Refinancing if: Hunting best rates/features, loan >S$400k, tolerant of 3-month process. In 2026's rate dip, refinancing surged for HDB flats beating HDB's 2.6%.[7]
Related: Refinancing vs Repricing: Which Saves You More in 2026? | Homejourney and Hidden Refinancing Costs at Top Banks in Singapore | Homejourney .
FAQ: Refinancing vs Repricing in Singapore
What is the main refinancing vs repricing difference?
Repricing stays with your bank (low cost, fast); refinancing switches banks (higher upfront fees, better rates).[1][2]
Are refinancing fees waived in 2026?
Yes, full subsidies for HDB >S$300k, private >S$400k from banks like HSBC, but 3-year clawback applies.[2][3]
How much can I save repricing my mortgage?
Up to S$500/month on S$500k loan dropping from 3% to 1.6%, per real DBS case.[5]
Best time to refinance or reprice?
Post-lock-in; refinance 3-6 months early. Track SORA on Homejourney.[2][5]
Is Homejourney safe for loan apps?
Yes—Singpass verified, multi-bank offers in one secure submission, prioritizing your trust and data safety.
Disclaimer: Rates fluctuate; this is not financial advice. Consult professionals. Data as of 2026 from MAS/HDB-aligned sources.
Ready to save? Compare refinancing rates safely on Homejourney bank-rates, submit one app via Singpass, and let banks compete. Find properties in budget via property search. Your trusted partner for confident decisions.
