Refinancing vs Repricing: Which is Better for You?
Repricing is better if you want quick savings with minimal hassle and fees under S$1,000, while refinancing suits those seeking the lowest rates and best features from banks like DBS, OCBC, or UOB, despite higher upfront costs of S$2,000-S$3,000. This cluster article dives into the key differences, helping Singapore HDB and private property owners decide based on real 2026 market conditions. As part of Homejourney's comprehensive Singapore Home Loan Guide pillar, we prioritize your safety with verified data and transparent advice to build trust in every decision.
What is Refinancing vs Repricing in Singapore?
Repricing means switching to a new interest rate package within the same bank after your lock-in period ends, typically taking 1 month with fees around S$800 or free at many banks.[2][4] Refinancing involves closing your current loan and moving to a new bank, which takes 2-3 months and incurs legal fees (S$1,500 for HDB, S$1,800+ for private) plus valuation costs, totaling S$2,500-S$3,000.[1][2][3]
Both options capitalize on falling SORA rates—now at a 3-year low of 1.34% for 3-month packages—making bank loans cheaper than HDB's 2.6%.[1] Homejourney makes it safe and simple: compare refinance offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more on our platform without branch visits.
Read our detailed guide on Refinance Home Loan Online: No Bank Visits via Homejourney ">Refinance Home Loan Online: No Bank Visits via Homejourney for digital refinancing tips.
Key Costs and Savings: A Side-by-Side Comparison
Understanding costs is crucial for HDB upgraders or resale flat owners in areas like Punggol or Sengkang eyeing savings. Use this table to evaluate:
| Factor | Refinancing | Repricing |
|---|---|---|
| Fees | S$2,500+ (legal S$1,500 HDB/S$1,800 private + valuation) | S$300-S$1,000 (often free) |
| Time | 2-3 months | 1 month |
| Cash Rebates | Up to S$2,300 (e.g., DBS for S$500k private loan) | Limited |
| Rate Options | All banks (e.g., 1.48% 2-yr fixed) | Current bank only |
Banks often subsidize full fees for HDB loans over S$200k. Calculate break-even: If refinancing saves 0.5% on a S$500k loan, you save ~S$2,500/year—recovering fees in under a year.[2][3] Homejourney's mortgage calculator lets you compare refinance offers instantly.
SORA Rates and Timing: When to Act in 2026
SORA (Singapore Overnight Rate Average) is Singapore's key benchmark, with 3M SORA at 1.34%—driving refinancing surges like 35-40% YoY in 2019-2020.[1] Fixed packages shine at 1.48% (2-yr) or 1.5% (3-yr).[1]
The chart below shows recent interest rate trends in Singapore:
Rates may stabilize mid-2026, so act before lock-ins end (common for 2023-24 loans at 3-4%).[1] Track real-time SORA on Homejourney bank-rates for perfect timing—our no branch visit refinance ensures safety.[1]
Step-by-Step: How to Refinance or Reprice Safely
- Check Eligibility: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator. Ensure LTV ≤80% for HDB resale.[3]
- Compare Offers: On Homejourney, view rates from 10+ banks like CIMB, RHB, Public Bank. Easy mortgage switch via one multi-bank application.[2]
- Apply Digitally: Use Singpass for instant verification—no queues. See our Step by Step Singpass Loan Application Guide | Homejourney ">Step by Step Singpass Loan Application Guide.
- Notify Current Bank: Serve notice; get valuation (free for many HDB refinances).
- Close & Switch: Lawyers handle conveyancing. Enjoy rebates offsetting fees.
Timeline: Reprice in 1 month; refinance in 2-3. Insider tip: Time around CPF top-ups for max savings—Homejourney verifies all for trust.[2][4]
Real Example: HDB Flat in Toa Payoh
Own a S$500k Toa Payoh resale HDB (common for upgraders)? Current 3% rate costs S$12,500/year interest. Reprice to 1.8% saves S$5,500/year (break-even: 2 months at S$800 fee). Refinance to DBS 1.48% saves S$7,600/year; S$2,000 rebate covers fees—net save S$5,600 Year 1.[1][2]
Switch via Homejourney: Submit once, get offers from UOB, HSBC, etc. Learn more in How to Use Homejourney Bank Rate Comparison: 2026 Guide ">How to Use Homejourney Bank Rate Comparison: 2026 Guide.
Money-Saving Tips and Warnings
- Negotiate: Pit banks against each other via Homejourney's multi-bank system—Benefits of Multi-Bank Application in One Click | Homejourney ">Benefits of Multi-Bank Application in One Click.
- Avoid Clawback: Check 2-3 yr penalties if selling soon.
- HDB Note: Can't revert to HDB loan post-bank refinance.[1]
- Combine Goals: Link with offset accounts at OCBC or DBS for extra yields.
Disclaimer: This is general advice; consult Homejourney mortgage brokers or professionals. Rates as of Feb 2026; MAS regulates all.[1][3]
FAQ: Common Questions on Refinancing vs Repricing
Q: Is refinancing worth it for my S$300k HDB loan?
A: Yes if savings exceed S$2k/year—use our bank-rates tool for refinance online simulation.
Q: Can I do no branch visit refinance?
A: Absolutely via Homejourney's Singpass integration—digital refinancing approved by DBS, UOB, etc. No queues, full transparency.
Q: What's the best 2026 package?
A: 1.48% 2-yr fixed with free conversion; compare on Homejourney for latest from Standard Chartered, Maybank.
Q: How to calculate break-even?
A: (Fees / Monthly Savings) = Months. E.g., S$2,500 / S$200 = 12.5 months. Try our How to Use Homejourney Mortgage Calculator: 2026 Guide ">Mortgage Calculator Guide.
Q: Reprice or refinance from HDB loan?
A: Bank loans now beat 2.6%; refinance if rates stay low, but note no return to HDB.[1]
Ready to save? Visit Homejourney bank-rates for easy mortgage switch, multi-bank apps, and trusted guidance. Link back to our pillar guide for full home loan mastery—your safe path to property success.
