Refinancing vs Repricing: Which is Better for You? Homejourney

Refinancing is often better if you can save at least 0.5% on interest rates across banks like DBS, OCBC, or UOB, while repricing suits quick switches within your current bank. Homejourney helps you compare rates safely and transparently to decide. This cluster article dives into the key differences, costs, and calculations for Singapore homeowners, linking back to our pillar guide on Singapore home loan strategies.

Refinancing vs Repricing: Core Differences

Refinancing means switching your home loan to a new bank or lender, like moving from an HDB loan at 2.6% to a bank loan at 1.55%-1.8%.[1] Repricing keeps you with the same bank but changes the interest package, often for free after the lock-in period.[1][3]

Refinancing offers access to competitive packages from DBS, OCBC, UOB, HSBC, and more, potentially maximizing savings with cash rebates and features like free conversions.[1][4] Repricing is faster—effective in about a month versus 3 months for refinancing—but limits you to your bank's options.[3]

At Homejourney, compare refinancing rates from all major banks in one place at https://www.homejourney.sg/bank-rates. Our platform verifies data for your safety, ensuring trusted decisions.

When Refinancing is Worth It: Savings Analysis

Bank loans have dropped to 1.34%-1.8% on SORA-linked packages, cheaper than HDB's 2.6%, driving more HDB owners to refinance in 2025.[1] For a $500,000 loan over 25 years, dropping from 3% to 1.5% saves ~$500 monthly.

Calculate your refinance break-even with this formula: Break-even months = Total refinancing costs / Monthly savings. Example: $3,000 costs / $300 savings = 10 months. If you stay longer, it's worth it.[2]

Use Homejourney's refinance calculator at https://www.homejourney.sg/bank-rates#calculator for instant results. Track real-time SORA to time your move perfectly.

Refinancing Costs and Hidden Fees

Repricing costs: $300-$1,000 admin fee, often subsidized.[3][4]

Refinancing costs: Legal fees ($1,500 HDB/$1,800 private), valuation ($150-$700), possible clawback if early exit. Banks like OCBC subsidize for loans over $200,000.[1][4]

Legal fees for conveyancing and title deed release.
Valuation to confirm property value.
Fire insurance (similar to current).

Many banks offer full subsidies plus cash rebates. Check promotions on Homejourney to offset refinancing costs.

Current Interest Rate Trends in Singapore

SORA (Singapore Overnight Rate Average), the key benchmark, fell to 1.34% (3-month), lowest in 3 years, boosting refinancing.[1] Fixed rates start at 1.48% for 2 years with free conversion.[1]

The chart below shows recent interest rate trends in Singapore:

As seen, rates declined through 2025, but moderation expected mid-2026.[1] Refinancing from 2023-2024 high rates (3-4%) remains viable now.

Step-by-Step Guide: Should I Refinance or Reprice?

Check lock-in expiry: Act post-lock-in to avoid penalties.
Assess finances: TDSR must comply; use Homejourney's eligibility calculator.
Compare rates: Via Homejourney bank rates for DBS, UOB, HSBC, etc.
Calculate break-even: Factor costs vs savings.
Apply via Singpass: One Homejourney application to multiple banks—faster, secure.
Negotiate: Leverage offers; banks compete for you.

Timeline: Repricing 1 month; refinancing 3 months. For HDB owners, note no return to HDB loans post-bank switch.[1]

Money-Saving Tips and Timing

Best now if rates >0.5% above market (e.g., HDB switch).[1] Negotiate rebates from Maybank, CIMB, RHB. Combine with principal paydown.

Insider tip: Time for bank promotions post-SORA dips. Track on Homejourney for real-time alerts. Read our related guide: Best Bank Refinancing Rates Comparison 2025 | Homejourney .

Disclaimer: This is general advice. Consult professionals; rates change. Homejourney prioritizes your security with verified data.

FAQ: Refinancing vs Repricing in Singapore

Q: Is refinancing worth it for HDB flats?
A: Yes, if saving >0.3% vs 2.6% HDB rate, post-costs. Use our calculator.[1]

Q: What are typical refinancing costs?
A: $2,000-$3,000, often subsidized for >$200k loans.[4]

Q: How long to break even on refinancing?
A: 6-12 months usually; calculate via Homejourney tool.

Q: Can I refinance investment properties?
A: Yes, but TDSR applies. See Refinancing for Investment Property Owners: Homejourney Guide .

Q: Reprice or refinance first?
A: Compare savings; refinancing often wins long-term.[2][4]

Ready to save? Start with Homejourney's secure bank rates comparison—submit once, get multiple offers. For full strategies, visit our pillar on Singapore home loans. Trust Homejourney for transparent, safe property finance.