Refinancing vs Repricing: Which Strategy Saves You More?
Refinancing and repricing are two distinct strategies to lower your mortgage interest rate, but they work differently and have different costs and timelines. Refinancing means switching to a new loan with a different bank, while repricing means changing to a different interest rate package within your current bank.[1][4] For most Singapore homeowners, refinancing typically offers greater savings and flexibility, though repricing may suit those prioritizing speed and simplicity.[2]
The choice between these two options depends on your financial situation, the current interest rate environment, and how much time you're willing to invest in the process. Understanding the key differences will help you make a decision that genuinely reduces your monthly mortgage burden.
Understanding the Core Differences
Repricing is the faster, simpler option. You stay with your existing bank and switch to a different interest rate package once your lock-in period expires, typically within one month.[3] The bank handles most of the administrative work, and you avoid the complexity of transferring your property title deed.
Refinancing involves a complete loan transfer to another bank. This process takes longer—usually at least three months—because it requires legal conveyancing, property valuation, and title deed transfer.[3] However, refinancing gives you access to the entire market of bank offerings, not just your current bank's packages.
The critical limitation with repricing is that your existing bank typically offers worse or identical packages to existing customers compared to what they offer new borrowers.[5] This means you may not get their best rates when repricing, whereas refinancing allows you to access promotional rates and special offers designed for new customers.
Cost Comparison: Repricing vs Refinancing
This is where the financial reality becomes clear. Repricing fees are significantly lower, ranging from $300 to $1,000 in administrative charges.[2][3] However, refinancing costs more upfront but often delivers greater long-term savings.
Refinancing costs typically include:
- Legal fees: $1,500 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 typical cost: $2,000-$2,700 without subsidies[2][3]
The good news for HDB owners: many banks now offer full fee subsidies if your outstanding mortgage exceeds $200,000.[2] This dramatically changes the refinancing equation, making it essentially free to switch banks if you qualify.
For private property owners, banks increasingly offer cash rebates and legal fee waivers to attract refinancing business.[1] Always ask about these promotions when comparing options on Bank Rates .
Current Interest Rate Environment (January 2026)
The interest rate landscape has shifted significantly. As of early 2026, floating-rate packages linked to Singapore Overnight Rate Average (SORA) have dropped to historic lows, with three-month SORA rates at 1.34 percent—the lowest in three years.[1] Fixed-rate packages now range from 1.48 to 1.8 percent, compared to HDB's concessionary rate of 2.6 percent.[1]
The chart below shows recent SORA trends to help you understand how rates have moved:
This rate environment has triggered significant refinancing activity, particularly among HDB owners switching from the 2.6 percent HDB rate to bank loans.[1] However, experts note that the bulk of rate declines have already occurred, and further drops are likely to be modest.[1] This suggests the window for maximum savings may be narrowing, making timing important.
When Repricing Makes Sense
Repricing is the right choice if you prioritize speed and simplicity over maximum savings. You'll enjoy a new rate within one month, compared to three months or more for refinancing.[3] This matters if you want to lock in a rate quickly or prefer minimal disruption to your finances.
Repricing also makes sense if your current bank offers a genuinely competitive package with features you value—such as an interest offset account, flexible repayment terms, or excellent customer service.[2] If you're already satisfied with your bank's service and they're offering a reasonable rate, the hassle of refinancing may not justify the effort.
However, be realistic about your savings. You'll likely pay more in interest over time compared to refinancing, and your options are limited to what your bank offers.[2] Calculate the break-even point carefully: if your repricing fee is $800 and you save only $50 per month compared to refinancing, you'll need 16 months just to recover the fee difference.
When Refinancing Delivers Better Value
Refinancing is typically the better choice for most homeowners because it maximizes your savings and flexibility.[2] You can compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major banks all in one place on Bank Rates , allowing you to find the best deal available in the market.
Refinancing makes particularly strong sense if:
- Your outstanding mortgage exceeds $200,000 (HDB owners qualify for full fee subsidies)[2]
- Your current rate is significantly higher than market rates (savings exceed $100+ monthly)
- You want access to promotional rates and cash rebates banks offer new customers[1]
- You need specific loan features your current bank doesn't offer[2]
- You're willing to invest 3+ months for potentially $10,000+ in lifetime savings
The flexibility advantage is substantial. Modern refinancing packages often include free repricing options after the first year, allowing you to switch packages within your new bank without additional fees if rates change.[1] This gives you the best of both worlds—initial access to competitive rates plus future flexibility.
Calculating Your Break-Even Point
Before deciding, calculate whether refinancing costs are justified by your interest savings. Here's the framework:
Step 1: Calculate monthly savings
Current monthly payment at 2.6% (HDB) minus new monthly payment at 1.55% (typical bank rate) = monthly savings
Step 2: Account for refinancing costs
Total refinancing fees (after subsidies if applicable) = total upfront cost
Step 3: Find your break-even period
Total refinancing costs ÷ monthly savings = months to recover costs
For example: An HDB owner with a $300,000 outstanding mortgage refinancing from 2.6% to 1.55% saves approximately $275 monthly. With full fee subsidies (common for HDB), break-even is immediate. Even without subsidies, at $2,500 in costs, break-even occurs in just 9 months—well worth it given a typical 15-20 year remaining loan period.
Use Homejourney's mortgage calculator at Bank Rates to instantly calculate your potential savings before you commit.
The Homejourney Advantage: Simple Refinancing Process
Refinancing used to mean visiting multiple bank branches, submitting separate applications, and waiting weeks for responses. Homejourney has transformed this process through technology and partnerships with Singapore's major banks.
Here's how Homejourney makes refinancing easier:
- Compare all rates in one place: View current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more without visiting individual branchesBank Rates
- One-click application: Submit a single refinancing application to all major banks simultaneously—banks then compete for your businessHomejourney: Benefits of Multi-Bank Application in One Click
- Singpass integration: Use Singpass to auto-fill your application in seconds, with instant data verification for faster processing使用Singpass申请房贷完整指南：Homejourney权威手册2026
- Real-time SORA tracking: Monitor live 3-month and 6-month SORA rates to time your refinancing decision perfectly
- Mortgage broker support: Connect with Homejourney's experienced mortgage brokers who provide personalized guidance at no cost
This approach eliminates the traditional friction points of refinancing. Instead of spending hours researching rates and filling out paperwork at multiple banks, you complete one application and let banks compete for your business. Most users receive multiple offers within 2-3 weeks.
