Refinancing vs Repricing: Which Saves You More Money in 2026?

When interest rates drop, homeowners face a critical decision: should you refinance to a different bank or reprice with your current lender? The answer depends on your financial situation, timeline, and how much you stand to save. At Homejourney, we help Singapore property owners make informed decisions about their mortgages by breaking down the real costs and benefits of each option.

Both refinancing and repricing allow you to switch to a lower interest rate package, but they work differently and carry different costs. Understanding these differences is essential to maximizing your savings and avoiding unnecessary fees.

What's the Difference Between Refinancing and Repricing?

Repricing means switching to a different interest rate package with your current bank after your lock-in period ends. You stay with the same lender but choose a new rate structure—for example, moving from a 3% fixed rate to a 1.6% fixed rate with the same bank.[4] The process is straightforward and requires minimal documentation.

Refinancing means switching your entire loan to a different bank. Your new bank pays off your existing mortgage, and you start fresh with them. This gives you access to better rates across the entire market, not just your current bank's offerings.[1][4]

The key distinction: with repricing, you're locked into your current bank's available packages. With refinancing, you can shop around and choose from dozens of banks competing for your business.

Cost Comparison: What You'll Actually Pay

One of the biggest factors in deciding between refinancing and repricing is the cost involved. Let's break down the real numbers:

Repricing Costs

Repricing fees are minimal because no legal work or property valuation is required. You're simply switching packages within the same bank.[2][3]

Administrative fee: $300–$1,000 (typically around $800)[2][3]
Processing time: 1–3 working days for approval[2]
Notice period: Usually 1 month before your lock-in period ends[2]

Many banks now waive repricing fees entirely as a competitive incentive, making repricing essentially free.[1]

Refinancing Costs

Refinancing involves more steps because you're moving your loan to a new bank, which requires legal documentation and property valuation.[2]

Legal fees (conveyancing): $1,500–$2,000 for HDB properties; $1,800–$2,000 for private properties[2]
Valuation fees: $150–$200 for HDB properties; $150–$700 for private properties[2]
Total cost without subsidies: Around $2,500[2]
Processing time: Approximately 13 weeks[2]
Notice period: 3–6 months before your lock-in period ends[2]

However, if your outstanding mortgage exceeds $200,000 on an HDB property, most banks will fully subsidize all refinancing fees as part of their competitive offerings.[2] This means you could refinance for free.

On top of these upfront costs, some HDB borrowers face a "clawback" charge if they refinance within 5 years of their original loan, though this is becoming less common as banks compete more aggressively.[1]

Timeline: How Long Does Each Option Take?

If you need to access lower rates quickly, repricing has a significant advantage:

Repricing: 1 month total (notice period) + 1–3 days for approval. You can start saving on interest within 30 days.[2][3]
Refinancing: 3–6 months advance notice + 13 weeks processing. You won't see savings for 4–6 months.[2]

This timeline difference matters. If you're refinancing a $400,000 loan and saving $200 per month in interest, waiting an extra 3–4 months costs you $600–$800 in lost savings. However, if refinancing saves you $300+ monthly, the longer timeline may still be worthwhile.[1]

Rate Options: What Can You Actually Get?

This is where refinancing truly shines. With repricing, you're limited to your current bank's available packages. With refinancing, you can access the entire market.

As of early 2026, popular refinancing packages include:[1]

2-year fixed rate at 1.48% with free conversion after year one
3-year fixed rate at 1.5%
Floating SORA-linked rates as low as 1.34% (3-month SORA)[1]

If your current bank's repricing options don't match these market rates, refinancing could save you significantly. For example, a homeowner who repriced with DBS to a 2-year fixed rate at 1.6% is saving approximately $500 monthly compared to their previous 3% rate.[4]

The chart below shows recent SORA rate trends to help you understand the interest rate environment:

As you can see, rates have declined significantly, creating a strong incentive to refinance or reprice. However, experts predict that most of the rate decline has already occurred, and further drops will be modest.[1]

Flexibility and Features Matter Too

Beyond just interest rates, the loan features available to you differ significantly:

Repricing limitations: You're restricted to the features your current bank offers. If they don't provide an interest offset account, flexible repayment terms, or the ability to convert between fixed and floating rates, you're stuck with what they have.[2]

Refinancing advantages: You can choose from multiple banks offering different features. Many banks now offer:[1]

Free conversion between fixed and floating rates after the lock-in period
Free repricing within the same bank after year one
Cash rebates and legal fee subsidies
Interest offset accounts that reduce your effective interest rate
Flexible partial repayment options without penalties

If you value flexibility—especially the ability to adapt to changing interest rates—refinancing typically provides better options.[2]

The Break-Even Calculation: When Refinancing Makes Financial Sense

To decide between refinancing and repricing, you need to calculate your break-even point. Here's how:

Calculate monthly savings: Multiply your outstanding loan amount by the difference between your current rate and the new rate, divided by 12. For example, a $400,000 loan at 3% versus 1.6% = $400,000 × (3% − 1.6%) ÷ 12 = $467 monthly savings.
Divide total refinancing costs by monthly savings: If refinancing costs $2,500 and you save $467 monthly, your break-even point is 5.4 months ($2,500 ÷ $467).
Compare to repricing costs: If repricing costs $800 and saves you $400 monthly (because your bank's rate is slightly higher), your break-even is 2 months.
Factor in timeline: If refinancing takes 4 months to complete and your break-even is 5.4 months, you'll start seeing net savings only 1.4 months after completion.

Use Homejourney's refinancing calculator at Bank Rates to instantly see your potential savings from different banks. Input your loan amount, current rate, and desired package to see exactly how much you could save monthly and when you'd break even.

Special Consideration: HDB Loan Refinancing

HDB flat owners face a unique decision. The HDB concessionary loan rate is currently 2.6%, while bank rates have dropped to 1.55–1.8% for fixed packages and as low as 1.34% for floating SORA-linked rates.[1]

The catch: once you refinance from an HDB loan to a bank loan, you cannot switch back to an HDB loan in the future.[1] This is a permanent decision that deserves careful consideration.

However, the savings are substantial. Refinancing a $400,000 HDB loan to a bank loan could save approximately $3,600 in first-year interest alone.[1] Over a 25-year mortgage, this compounds to significant savings.

If you're an HDB owner considering refinancing, use Homejourney to compare offers from all major banks simultaneously. Submit one application via Singpass at Bank Rates , and receive competing offers from DBS, OCBC, UOB, HSBC, Standard Chartered, and other partners. This eliminates the need to visit multiple bank branches and ensures you get the best available rate.

When to Choose Repricing

Repricing makes sense if:

Your current bank's repricing rate is competitive with market rates
You value speed—you need to access lower rates within 1 month
You have a small outstanding loan (under $200,000) where repricing fees aren't waived
You're satisfied with your current bank's features and service
You don't have time to research multiple banks and compare offers
Your break-even calculation shows repricing saves money faster

Repricing is the path of least resistance. It's quick, simple, and costs almost nothing. If your current bank is offering competitive rates, there's no compelling reason to go through the hassle of refinancing.

When to Choose Refinancing

Refinancing makes sense if:

Your current bank's repricing rate is significantly higher than market rates (more than 0.3–0.5% difference)
You want access to better loan features (offset accounts, flexible conversion, better repayment terms)
Your outstanding loan exceeds $200,000 on an HDB property (banks will subsidize fees)
You're refinancing from an HDB loan to a bank loan (substantial rate savings justify the effort)
You have 4–6 months before your lock-in period ends (enough time to complete the process)
Your break-even calculation shows long-term savings exceed the upfront costs
You want to lock in a fixed rate before rates rise further

Refinancing requires more effort, but it gives you control. You're not limited to one bank's offerings—you can shop around and let banks compete for your business.

How Homejourney Makes Refinancing Easier

At Homejourney, we understand that refinancing can feel overwhelming. That's why we've simplified the process:

1. Compare rates from all major banks in one place. Visit our bank rates page at Bank Rates to see current offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and more. No need to visit multiple branches or call different banks.

2. Calculate your potential savings instantly. Our refinancing calculator shows you exactly how much you could save monthly, your break-even timeline, and total interest savings over the life of your loan. Input your loan amount, current rate, and desired package to see real numbers.

3. Submit one application to all banks simultaneously. Instead of filling out separate applications at each bank, submit once through Homejourney and receive competing offers. Banks will contact you directly with their best rates and terms.

4. Use Singpass for instant verification. Connect via Singpass to auto-fill your application in seconds. Your income and financial data are verified instantly, speeding up the approval process.

5. Track live SORA rates. Monitor real-time 3-month and 6-month SORA rates on our platform to time your refinancing decision perfectly. When rates hit your target, you'll know immediately.

6. Get personalized guidance from Homejourney Mortgage Brokers. Apply via our bank rates page to connect with our team of mortgage brokers who provide personalized guidance based on your specific situation. We prioritize your safety and help you understand every step of the process.

The Current Market Outlook for 2026

Interest rates have already declined significantly—3-month SORA rates are at 3-year lows of 1.34%.[1] Experts believe most of the rate decline has already occurred, and further drops will be modest given current macroeconomic conditions.[1]

This means if you're considering refinancing or repricing, the time to act is now. Waiting may not yield better rates. In fact, rates could potentially rise later in 2026, making current offers increasingly attractive.

Refinancing activity is expected to remain healthy through mid-2026, though it may moderate as borrowers who locked in at 3–4% rates in 2023–2024 complete their refinancing.[1] If you haven't yet refinanced or repriced, you're in the window of opportunity.