Refinancing vs Repricing: Which is Better for You?
Repricing is better if you're with a competitive bank offering low rates and want minimal hassle; refinancing wins if another bank provides significantly lower rates, cash rebates, or better features despite upfront costs. This decision hinges on your current loan details, lock-in status, and total savings after fees. Homejourney simplifies this with tools to compare refinance offers from DBS, OCBC, UOB, and more.[1][2]
In Singapore's falling rate environment as of 2026, HDB flat owners and private property investors are switching loans to save thousands. Bank loans now average 1.55-1.8%, below HDB's 2.6% concessionary rate.[1] This cluster article dives into actionable steps, connecting to our pillar guide on Refinance Your Home Loan Without Visiting Multiple Banks | Homejourney ">Singapore home loan strategies.
Refinancing vs Repricing: Key Definitions
Refinancing means terminating your existing loan and taking a new one from another bank, like switching from DBS to OCBC for better terms. Repricing stays with your current bank but switches to a lower-rate package after lock-in.[2][3]
SORA-linked floating rates have hit 3-year lows at 1.34% p.a., driving activity up 35-40% YoY for HDB loans.[1] Repricing suits quick moves (1 month processing); refinancing takes 2 months but unlocks promotions.[2]
Costs Breakdown: What You'll Pay
Upfront fees determine break-even. For HDB flats:
| Cost | Refinancing | Repricing |
|---|---|---|
| Legal & Valuation | S$3,000+ | N/A |
| Admin/Conversion Fee | N/A | S$800 |
| Early Redemption (if in lock-in) | 1.5% of loan | N/A |
Offset refinancing costs with bank cashback: DBS offers S$2,000+ for S$300k+ HDB loans.[2] Use Homejourney's mortgage calculator for net savings.[2]
SORA Rates and Timing Your Move
SORA (Singapore Overnight Rate Average) benchmarks most loans. 3-month SORA fell to 1.34%, making floating packages attractive.[1]
The chart below shows recent interest rate trends in Singapore:
Rates may moderate mid-2026 as 2023-2024 loans refinance out.[1] Act post-lock-in (2-3 years typical) for DBS/OCBC/UOB packages with free conversion after year 1.[1][2]
Break-Even Analysis: Real Singapore Examples
For a S$400k HDB loan at 3% switching to 1.6%:
- Repricing: S$500/month savings, break-even ~2 months (S$800 fee).[3]
- Refinancing: S$600/month savings, but S$3,500 fees; break-even 6 months. Add S$2,000 rebate? Net positive immediately.[1][2]
POSB refinance from HDB saves S$3,600/year on S$400k.[1] Insider tip: HDB owners can't revert to concessionary loans post-refinance—verify eligibility first via Homejourney.[1]
Calculate yours: Compare DBS (1.48% 2-yr fixed), OCBC, UOB on Homejourney bank rates.[1][2]
Step-by-Step: Easy Digital Process
No branch visit refinance with Homejourney's Step-by-Step Singpass Loan Application Guide | Homejourney ">Singpass integration:
- Compare offers: See DBS, HSBC, Standard Chartered rates instantly.
- Run calculator: Input loan via Homejourney tool for savings.
- Submit once: Multi-bank app to 10+ partners (Maybank, CIMB, RHB)—banks compete.Benefits of Multi-Bank Application in One Click | Homejourney
- Track SORA: Real-time on platform; approve digitally.
- Close: 1-2 months, rebates credited.
Legal fees often bank-subsidized. How to Use Homejourney Bank Rate Comparison: 2026 Guide ">Learn more on comparisons.
When to Choose Each: Decision Framework
- Reprice if: Current bank (e.g., DBS) matches market at 1.5%, low fees, synergy with accounts.
- Refinance if: 0.3%+ rate gap, need features like free conversion, or HDB-to-bank switch.[2][5]
Negotiate: Leverage offers from UOB/HSBC via Homejourney multi-app. Track Straits Times Housing News ">Straits Times for trends.[1] Disclaimer: Not financial advice; consult professionals. MAS regulates loans under TDSR.
Homejourney: Your Safe Refinancing Partner
Homejourney prioritizes trust with verified rates, Singpass security, and user feedback-driven tools. Refinance online safely—no branch visits, instant verifications. Post-refinance, explore property search for upgrades or Aircon Services ">maintenance.
FAQ
What's the difference between refinancing and repricing?
Refinancing switches banks (new loan); repricing changes packages within your bank post-lock-in.[2][3]
Is now a good time to refinance in 2026?
Yes, with rates at 1.34-1.8%, but moderate mid-year. Use Homejourney tracker.[1]
How much can I save on a S$500k loan?
S$500-700/month switching from 3% to 1.6%; factor fees for net.[2][3]
Can I refinance HDB loans digitally?
Yes, via Homejourney's Singpass multi-bank submission—no branches.[1]Singpass vs Traditional Loan: Which is Better for Singapore Homes? | Homejourney
What if I'm in lock-in?
Wait or check free conversion options; penalties ~1.5%.[2]
Ready for digital refinancing? Compare refinance offers and switch easily with Homejourney. Link back to our pillar on home loans for full coverage.
