Refinancing vs Repricing: Which is Better for You? Homejourney Guide
Repricing is often better if you're happy with your current bank and want minimal hassle, while refinancing suits those seeking the lowest rates from competitors like DBS, OCBC, or UOB. Homejourney helps you compare options safely through our verified bank rates page at https://www.homejourney.sg/bank-rates, prioritizing your trust and security.[1][2]
This cluster article dives into Refinancing vs Repricing: Which is Better for You, building on our pillar guide to Singapore home loans. With rates at 3-year lows—3-month SORA at 1.34%—more HDB owners are switching from 2.6% HDB loans to bank packages at 1.55-1.8%.[1] At Homejourney, we verify all data to ensure you make confident decisions in a trusted environment.
Refinancing vs Repricing: Key Differences Explained
Repricing means switching to a better package within the same bank after your lock-in period, typically free or low-cost (around S$800 admin fee).[2] Refinancing involves closing your current loan and taking a new one from another bank, incurring legal and valuation fees (S$3,000+).[2]
For HDB flats, refinancing from HDB's 2.6% rate to banks can save S$3,600 yearly on a S$400,000 loan.[1] Private property owners see similar gains, with 2025 activity up due to falling rates.[1][3] Homejourney's platform lets you compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more in one safe place.
When Repricing Makes Sense
- Your current bank offers competitive rates post-lock-in, like DBS's free conversion after year 1.[2]
- Avoid upfront costs—repricing processes in 1 month vs 2 for refinancing.[2]
- Lock-in ending soon; Ms Denise Chan saved S$500/month repricing DBS from 3% to 1.6%.[3]
When Refinancing Wins
- Another bank offers lower rates or cash rebates (e.g., DBS S$2,000 for S$300k+ HDB loans).[2]
- Switching from HDB loans, as volumes jumped 35-40% in past low-rate waves.[1]
- Need better terms; banks like OCBC report rising HDB refinancing.[1]
Read our related article: 再融资vs重新定价：哪个更适合你？Homejourney指南 ">再融资vs重新定价：哪个更适合你？Homejourney指南 for more examples.
Refinancing Costs and Break-Even Analysis
Refinancing costs include legal/valuation fees (S$3,000+), possible early redemption (1.5% of loan), offset by rebates.[2] Repricing: S$800 or free.[2] Always calculate refinance break-even—time to recover fees via savings.
Example: S$500,000 loan, 20 years. Current 4.25% to 3.5% saves ~S$200/month. After S$3,000 fees, break-even is 15 months. Use Homejourney's refinance calculator for instant results.[2]
| Option | Monthly Payment (S$500k, 20yr) | Upfront Costs | Break-Even |
|---|---|---|---|
| Current 4.25% | S$3,130 | - | - |
| Reprice 3.5% | S$2,897 | S$800 | 4 months |
| Refinance 3.5% | S$2,897 | S$3,000 + rebate | 15 months |
Disclaimer: Rates illustrative; consult professionals. Homejourney verifies data for safety.
Current Interest Rate Trends in Singapore
SORA-linked floating rates dominate, with 3-month SORA at 1.34%—lowest in 3 years.[1] Fixed rates like 2-year at 1.48% are popular.[1] Track live via Homejourney.
The chart below shows recent interest rate trends in Singapore:
Rates fell from late 2024, driving refinancing; expect moderation mid-2026 as 2023-24 loans refinance.[1]
Step-by-Step Guide: Should I Refinance?
- Check lock-in: Avoid penalties (1.5%).[2]
- Compare rates: Use Homejourney bank-rates for DBS, OCBC, UOB, etc.
- Calculate savings: Our refinance calculator shows refinancing worth it?
- Apply via Singpass: One form to all banks; get competing offers.
- Timeline: Reprice 1 month, refinance 2 months.[2]
Submit via Homejourney for multi-bank offers—banks compete for you. Insider tip: Time before mid-2026 peak.[1]
Explore: Is Refinancing Worth It? Homejourney's Complete Calculator Guide ">Is Refinancing Worth It? Homejourney's Complete Calculator Guide.
Money-Saving Tips for Singapore Homeowners
- Negotiate: Leverage offers from HSBC, Standard Chartered.[1]
- Cash rebates offset fees (e.g., POSB S$3,600 savings example).[1]
- Combine with property search on Homejourney search.
- Track SORA on Homejourney; refinance from HDB if rates <2.6%.
- Avoid if break-even >2 years or rates rising.[1]
FAQ: Refinancing vs Repricing in Singapore
Is refinancing worth it now? Yes for HDB to banks at 1.55-1.8% vs 2.6%, if break-even <18 months. Use Homejourney calculator.[1][2]
What are refinancing costs? S$3,000+ legal/valuation, offset by rebates. Repricing: S$800 max.[2]
Refinance break-even how-to? (Savings/month x 12) / fees. E.g., S$200/month save, S$3,000 fees = 15 months.[2]
Best banks for refinancing? Compare DBS, OCBC, UOB on Homejourney; apply once for all.[1]
Can I switch back to HDB loan? No, after bank refinancing—key consideration.[1]
Ready to save? Start with Homejourney's secure bank-rates comparison and refinance calculator. Link back to our pillar: Singapore Home Loans Guide for full coverage. Your safety first—trusted by Singapore homeowners.
