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

The choice between refinancing and repricing can save you thousands of dollars annually on your mortgage, but they work very differently. Refinancing means switching to a completely new loan with a different bank, while repricing lets you change your interest rate package with your current bank. The right choice depends on your financial goals, the current rate environment, and how much you're willing to spend on fees.

With Singapore mortgage rates at 3-year lows in early 2026, many homeowners are reconsidering their loans. Whether you're paying 2.6% on an HDB loan or locked into a higher rate from 2023-2024, understanding the differences between these two options is essential for making an informed decision that truly benefits your finances.

Understanding the Core Difference

Repricing is a simple switch within your current bank. You move from one interest rate package to another—perhaps from a 3% fixed rate to a 1.6% fixed rate—all while staying with the same lender. Your existing loan is modified rather than replaced.[2][5]

Refinancing is more comprehensive. You're taking out an entirely new loan with a different bank, which then pays off your existing loan. Your property's title deed transfers to the new lender, and you start fresh with new terms and conditions.[1][2]

For HDB loan holders, there's an important distinction: repricing doesn't apply to HDB loans because HDB has only one standard rate pegged to CPF at 2.6%. If you're on an HDB loan and want a lower rate, your only option is to refinance to a bank.[5]

The Cost Comparison: Fees Matter

This is where the two options diverge significantly. Understanding the true cost of each choice is critical before proceeding.

Repricing Costs

Repricing involves only administrative fees, typically ranging from $300 to $1,000 depending on your bank.[2][3] This is the major advantage of repricing—it's quick and inexpensive. You can enjoy your new rate package within approximately one month.[3]

Refinancing Costs

Refinancing requires two main fees:[2]

Legal fees: For HDB properties, expect $1,500. For private properties, legal fees range from $1,800-$2,000.
Valuation fees: For HDB properties, $150-$200. For private properties, $150-$700.

Total refinancing costs typically range from $2,000-$3,000 for HDB properties and $2,000-$2,700 for private properties.[2][4] However, there's good news: if your outstanding HDB mortgage exceeds $200,000, many banks will fully subsidize these fees as part of their refinancing promotions.[2]

Banks are currently competing aggressively for refinancing business, offering cash rebates and fee waivers to attract borrowers. This means your actual out-of-pocket costs could be significantly lower than the standard fees listed above.[1]

The timeline also differs: repricing takes effect within a month, while refinancing typically takes 3 months or longer to complete.[3]

Interest Rate Environment in 2026

To make the right decision, you need to understand current market conditions. As of early 2026, Singapore's mortgage rates remain near 3-year lows, with floating-rate packages linked to SORA (Singapore Overnight Rate Average) dropping to 1.34%—the lowest in three years.[1]

The most popular loan packages currently available include:[1]

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

These rates are substantially lower than the HDB's standard 2.6% rate, which explains why refinancing activity surged in 2025. However, experts believe the bulk of rate declines have already occurred, and further drops are likely to be modest given current macroeconomic conditions.[1]

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

This rate environment is crucial context: if you're currently on an older loan at 3-4%, either refinancing or repricing could yield significant savings. But if rates are already near their floor, the urgency diminishes.

Calculating Your Break-Even Point

The key question isn't which option is cheaper in fees—it's which saves you more money overall. To determine this, you need to calculate your break-even point: the number of months it takes for your interest savings to exceed the fees you'll pay.

Example Calculation for HDB Refinancing

Let's say you have a $400,000 HDB loan at 2.6% with 20 years remaining. You're considering refinancing to a bank loan at 1.6% fixed for two years.

Monthly payment at 2.6%: approximately $2,200
Monthly payment at 1.6%: approximately $1,900
Monthly savings: $300
Refinancing costs (assuming no subsidy): $2,000
Break-even point: 2,000 ÷ 300 = 6.7 months

In this scenario, you break even in less than 7 months and continue saving $300 monthly thereafter. Over the two-year fixed period, you'd save approximately $5,200 in interest after accounting for refinancing fees.[1]

For repricing, the calculation is simpler because costs are lower. If you're repricing within the same bank at a lower rate, your break-even point is typically just 2-3 months due to the minimal $300-$1,000 fee involved.

Use Homejourney's refinancing calculator at How to Calculate If Refinancing is Worth It: Homejourney Guide to run these numbers with your specific loan amount and timeline.

When to Choose Repricing

Repricing makes the most sense when:[2]

Your current bank is offering a competitive rate that matches or beats other banks' offers
You value speed and simplicity over maximum savings
You want to avoid the hassle of a lengthy refinancing process
You're satisfied with your bank's loan features and don't need additional benefits
Your outstanding loan is under $200,000 (making refinancing fee subsidies unavailable)
You want to start enjoying savings within one month rather than waiting three months

A real example: Ms. Denise Chan repriced her DBS mortgage in early 2026, moving to a two-year fixed loan at 1.6% from her previous 3% rate. This simple repricing is saving her approximately $500 monthly without the complexity of switching banks.[6]

Repricing is also the only option if you want to stay with your current bank and your bank's new package is genuinely competitive.

When to Choose Refinancing

Refinancing becomes the better choice when:[2]

You can access significantly lower rates at other banks (typically 0.5% or more below your current rate)
You want access to better loan features (flexible conversion options, interest offset accounts, superior customer service)
Your outstanding HDB loan exceeds $200,000 (qualifying you for full fee subsidies)
You're switching from an HDB loan to a bank loan—this is purely a refinancing decision since repricing doesn't apply to HDB loans
You want to compare multiple banks' offers and choose the absolute best package
You're willing to wait 3 months for potentially much larger savings

The 2025 refinancing surge demonstrated this clearly. HDB loan holders refinanced to bank loans at 1.55-1.8%, saving an estimated $3,600 in the first year alone on a $400,000 loan—enough to cover a family trip to Tokyo.[1] These savings far exceed the refinancing costs, making the switch worthwhile despite the longer timeline and higher fees.

Refinancing also gives you flexibility. Many banks now offer free conversion options after the first year, meaning you can switch from fixed to floating rates (or vice versa) without additional fees if the interest rate environment changes.[1]

Special Considerations for HDB Loan Holders

If you're currently on an HDB loan, refinancing deserves serious consideration in 2026. The rate difference between HDB's 2.6% and bank rates at 1.55-1.8% is substantial—roughly 0.8-1% lower. However, there's one critical caveat: 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. Before refinancing, confirm that:

You're comfortable with bank loan terms and don't anticipate needing HDB's flexibility in future
You plan to stay in your property long enough to recoup refinancing costs
You've compared offers from multiple banks to ensure you're getting the best rate

Given that your outstanding HDB loan likely exceeds $200,000, you'll qualify for full fee subsidies, making refinancing essentially cost-free. This shifts the decision heavily in refinancing's favor for HDB borrowers.

Using Homejourney to Make the Right Decision

Making this decision becomes much simpler with the right tools. Homejourney's bank rates comparison feature at How to Use Homejourney Bank Rate Comparison: 2026 Guide lets you instantly compare refinancing rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and other major banks in one place. Rather than visiting multiple bank branches or calling loan officers individually, you can see all available packages side-by-side.

The platform's refinancing calculator at How to Calculate If Refinancing is Worth It: Homejourney Guide helps you run break-even calculations instantly. Input your current loan amount, rate, and remaining tenure, then see exactly how much you'd save with each alternative package.

Most importantly, Homejourney's multi-bank application feature at Benefits of Multi-Bank Application in One Click | Homejourney lets you submit one refinancing application that reaches all major banks simultaneously. Instead of visiting multiple banks and filling out separate applications, you complete one form and let banks compete for your business. This approach typically results in better offers because banks know they're competing directly for your loan.

You can apply using Singpass for instant data verification, which speeds up the entire approval process. Once you receive offers from multiple banks, you'll have the information needed to decide whether refinancing or repricing is truly better for your situation.

The Current Market Outlook for 2026

Refinancing activity is expected to remain healthy throughout 2026, but with important caveats. Many borrowers who locked in loans at 3-4% during 2023-2024 have already refinanced at lower rates. This means the pool of borrowers with very high current rates is shrinking.[1]

From mid-2026 onwards, refinancing activity is expected to moderate. This suggests that if you're considering refinancing, early 2026 is an optimal window—rates are near their lows, and banks are still offering aggressive promotions to attract refinancing volume.[1]

However, refinancing should remain steady for HDB loan holders specifically, as the rate differential between 2.6% and bank rates remains compelling.[1]

Key Decision Framework

To decide between refinancing and repricing, ask yourself these questions in order:

Are you on an HDB loan? If yes, your only option is refinancing (repricing doesn't apply). Proceed to question 4.
Is your current bank offering a rate that's competitive with other banks? If yes, repricing might be sufficient. If no, refinancing is worth exploring.
Is your outstanding loan under $200,000? If yes, you won't qualify for fee subsidies, making repricing's lower costs more attractive. If no, refinancing fee subsidies make refinancing more feasible.
How much would you save monthly with refinancing vs. repricing? If refinancing saves significantly more (typically 0.5% or more), the higher fees are justified. Use Homejourney's calculator to determine this.
Can you wait 3 months for refinancing to complete? If you need savings immediately, repricing's one-month timeline is advantageous.
Do you value flexibility and choice? Refinancing gives you access to multiple banks' features and terms. Repricing limits you to your current bank's offerings.

In most cases, if you're on an HDB loan or if refinancing would save you more than $200-300 monthly, refinancing is the better long-term choice despite higher upfront costs. If you're already with a competitive bank and value speed, repricing makes sense.