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

If you're a Singapore homeowner with a mortgage, you've likely heard about refinancing and repricing—two strategies that can significantly reduce your monthly loan payments. But which one is right for you? The answer depends on your specific situation, the fees involved, and how much you stand to save.

Refinancing means switching your entire mortgage to a different bank, while repricing means switching to a different interest rate package with your current bank.[1][2] Both can help you take advantage of lower interest rates, but they come with different costs, timelines, and benefits. Understanding the differences is crucial to making the right financial decision.

At Homejourney, we believe in empowering Singapore homeowners with transparent, trustworthy information to make confident decisions. This guide breaks down refinancing versus repricing so you can determine which option aligns with your financial goals.

Understanding the Key Differences

Before diving into costs and timelines, let's clarify what each option actually means and when you'd use them.

Repricing is the simpler option: you stay with your current bank but switch to a different interest rate package once your lock-in period expires.[1] For example, you might move from a three-year fixed rate at 3% to a two-year fixed rate at 1.6%—all within the same bank. This is a straightforward process that typically takes about a month to complete.[3]

Refinancing is more involved: you take out a new loan with a different bank and use it to pay off your existing mortgage completely.[2] The new bank handles all the legal paperwork, including obtaining the title deed from your current bank. This process usually takes at least three months.[3] However, refinancing gives you access to all banks' offerings, not just your current bank's packages.

Important note for HDB borrowers: If you're currently on an HDB loan at 2.6%, repricing isn't an option because HDB only offers one standard rate.[5] Your only path to a lower rate is refinancing to a bank loan.

The Real Cost Comparison: Fees You Need to Know

When deciding between refinancing and repricing, the fees involved can make or break your savings. Here's what you'll actually pay:

Repricing Fees: Administrative charges typically range from $300 to $1,000 depending on your bank.[2] This is a one-time fee to process your rate change. Some banks waive this fee as part of promotional offers.

Refinancing Fees: This is where costs add up. You'll face two main expenses:[2]

Legal fees: $1,500-$2,000 for HDB properties, $1,800-$2,000 for private properties
Valuation fees: $150-$200 for HDB properties, $150-$700 for private properties

Total refinancing costs typically range from $1,650 to $2,700 for HDB properties and $1,950 to $2,700 for private properties—significantly more than repricing.[2][3]

The good news for HDB owners: If your outstanding mortgage exceeds $200,000, most banks will fully subsidize all refinancing fees as part of their promotional packages.[2] This makes refinancing essentially free for many HDB borrowers, which is a major advantage.

Beyond upfront fees, you should also consider the clawback period—the time it takes for your monthly savings to offset the fees you paid. For example, if you save $400 monthly but paid $2,000 in fees, your break-even point is five months.

Current Interest Rate Environment (January 2026)

The interest rate landscape in early 2026 is particularly favorable for refinancing and repricing decisions. Three-month SORA (Singapore Overnight Rate Average) rates have dropped to 1.34%—the lowest level in three years.[1] This has made bank loan packages significantly cheaper than HDB's standard 2.6% rate.

Popular bank packages currently include:[1]

Two-year fixed rate at 1.48% with free conversion after the first year
Three-year fixed rate at 1.5%
Floating-rate packages linked to SORA at 1.55%-1.8%

The chart below shows recent interest rate trends in Singapore to help you understand how rates have moved:

For HDB borrowers currently paying 2.6%, switching to a bank loan at 1.5%-1.8% represents potential savings of 0.8%-1.1% annually. On a $400,000 loan, this translates to $3,200-$4,400 in annual savings.[1]

However, experts note that the bulk of rate declines have already occurred. While further modest declines are possible, refinancing activity is expected to moderate from mid-2026 onwards.[1] This suggests that if you're considering a switch, sooner may be better than later.

Repricing: When It Makes Sense

Repricing is the right choice if you prioritize speed and simplicity over maximum savings. Here are scenarios where repricing works best:

You're satisfied with your current bank: If you have a good relationship with your bank and their new packages meet your needs, repricing avoids unnecessary hassle.
You want quick results: Repricing takes about a month versus three months for refinancing, so you start saving interest sooner.[3]
You don't have time for research: If comparing multiple banks feels overwhelming, repricing lets you move forward quickly with a known entity.
Your bank offers competitive rates: Some banks offer repricing packages that are genuinely competitive. Check their current offerings before assuming refinancing is better.
You want to maintain specific features: If your current bank offers unique features like interest offset accounts or special deposit-linked rates that you value, repricing preserves these benefits.[2]

The downside of repricing is that you're limited to your bank's offerings. If another bank has a significantly better rate or more attractive features, you'll miss out on those advantages.

Refinancing: When It Delivers Maximum Savings

Refinancing typically offers greater long-term financial benefits, particularly in the current rate environment. Consider refinancing if:

You're on an HDB loan: If you're currently paying HDB's 2.6% rate, refinancing to a bank loan at 1.5%-1.8% can save you thousands annually. Plus, with outstanding mortgages over $200,000, banks typically cover all refinancing fees.[1][2]
Your lock-in period has expired: Once your lock-in period ends, you can refinance without penalty. This is the ideal time to act.
You want maximum rate options: Refinancing lets you compare packages from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major banks—giving you access to the best rates available.[1]
You want flexibility for future changes: Many refinancing packages now include free repricing or free conversion options after the first year, letting you adapt if rates change.[1]
You're considering selling your property: Some banks waive refinancing penalties if you sell, making refinancing a safer bet if you might move within a few years.

The key advantage of refinancing is that banks actively compete for your business, which means better rates, cash rebates, and flexible features. In 2025, many HDB owners switched to bank loans specifically to capture these advantages.[1]

Making Your Decision: A Step-by-Step Framework

Here's how to systematically decide whether to refinance or reprice:

Step 1: Calculate Your Potential Savings

Use Homejourney's refinancing calculator to estimate monthly savings across different banks and packages. Compare this against the fees you'd pay. If your break-even point is less than two years, refinancing likely makes financial sense.

Step 2: Check Your Lock-In Period

Review your mortgage documents to confirm when your lock-in period expires. You can refinance or reprice penalty-free once this period ends. If you're still in your lock-in period, wait until it expires to avoid early termination fees.

Step 3: Compare Available Packages

Visit Homejourney's bank rates comparison page to see current offerings from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major banks.How to Use Homejourney Bank Rate Comparison: Step-by-Step Guide Look beyond just the interest rate—consider features like free repricing, cash rebates, and flexible conversion options.

Step 4: Factor in Your Circumstances

Consider your personal situation: How long do you plan to stay in your property? Do you value convenience over savings? Are you comfortable with floating rates or do you prefer fixed rates? Your answers will guide your choice.

Step 5: Submit Applications via Homejourney

If you decide to refinance, use Homejourney's multi-bank application system to submit one application to all major banks simultaneously. This saves time and lets banks compete for your business. You can also apply via Singpass for instant data verification and faster processing.Step-by-Step Singpass Loan Application Guide | Homejourney

Real-World Example: HDB Owner's Refinancing Decision

Let's walk through a realistic scenario. Consider Ms. Denise Chan, an HDB owner with a $400,000 mortgage at 3%:

Current monthly payment: $1,686 (on a 25-year loan)
Repricing option: Switch to her current bank's two-year fixed rate at 1.6%, saving about $200 monthly
Refinancing option: Switch to another bank at 1.5% fixed, saving about $230 monthly
Repricing fees: $800
Refinancing fees: $0 (fully subsidized by the new bank for her loan amount)

In this scenario, refinancing is clearly superior. She saves an extra $30 monthly compared to repricing, pays no fees, and gains flexibility with a free repricing option after year one. Over five years, refinancing delivers $1,800 more in savings than repricing, with zero upfront cost.

However, if Ms. Chan's outstanding mortgage was only $150,000 (below the $200,000 subsidy threshold), she'd face $1,650-$2,000 in refinancing fees. In that case, repricing might be more attractive unless her rate savings were substantial enough to offset those fees within a reasonable timeframe.

Timing Your Decision: Lock-In Periods and Rate Trends

Timing matters significantly when refinancing or repricing. Most mortgages include lock-in periods ranging from one to three years, during which you cannot switch without paying penalties. Here's how to approach timing strategically:

Know your lock-in expiry date: Mark this date on your calendar. It's the earliest you can refinance or reprice penalty-free. Start your research about two months before this date so you're ready to act when the time comes.

Consider the rate environment: While predicting interest rates is impossible, you can monitor trends. Track SORA rates on Homejourney to understand whether rates are rising or falling. If rates are declining, refinancing sooner captures current lows. If rates appear to be stabilizing, there's less urgency.

Plan for mid-2026 moderation: Experts expect refinancing activity to moderate from mid-2026 as borrowers who locked in at 3%-4% in 2023-2024 have already refinanced.[1] If your lock-in expires before mid-2026, you may face less competition among banks and fewer promotional offers. If it expires after mid-2026, banks may offer more aggressive incentives to attract business.

Avoid multiple switches: Each refinancing or repricing involves fees. Switching too frequently erodes your savings. Generally, you should refinance or reprice only when you can achieve meaningful savings (typically 0.5% or more in rate reduction) that justify the associated costs.

Simplifying Your Decision with Homejourney

Making the refinancing versus repricing decision doesn't have to be complicated. Homejourney is designed to make this process transparent, safe, and straightforward:

Compare rates instantly: Visit our bank rates page to see current offerings from all major banks side-by-side. No more visiting branches or calling multiple banks individually.Refinance Home Loan Online: No Bank Visits Needed | Homejourney

Calculate your savings: Use our refinancing calculator to determine exactly how much you'll save with each option, factoring in fees and your specific loan details.How to Use Homejourney Mortgage Calculator: Step-by-Step Guide

Apply to multiple banks at once: Submit one application through Homejourney and receive offers from multiple banks simultaneously. Let them compete for your business.Benefits of Multi-Bank Application in One Click | Homejourney

Verify your eligibility: