Refinancing vs Repricing: Which is Better for You?
Refinancing is often better if you're switching banks for maximum savings and features, while repricing suits quick changes within your current bank. The choice depends on your lock-in period end, potential savings, and tolerance for fees. Homejourney helps you compare options safely from DBS, OCBC, UOB, and more to ensure you make the best decision for your HDB or private property.
In Singapore's falling rate environment, with 3-month SORA at 1.34%—the lowest in three years—many HDB owners are acting on refinance timing.[1] This cluster article dives into when to refinance mortgage, break-even math, and steps, linking back to our pillar guide on Singapore home loans for full coverage.
Refinancing vs Repricing: Key Differences Explained
Refinancing means taking a new loan from a different bank to replace your existing one, often after the lock-in period. It involves legal work, property valuation, and credit checks but unlocks better rates and features across banks like HSBC or Standard Chartered.[2][3]
Repricing stays with your current bank, switching to a new package like a lower fixed rate. It's faster—effective in about a month—and cheaper, with fees around $800 versus refinancing's $2,000+ in legal and valuation costs.[3][4]
| Factor | Refinancing | Repricing |
|---|---|---|
| Savings Potential | Higher (shop multiple banks) | Limited to current bank |
| Timeline | 3+ months | 1 month |
| Fees | $1,500-$3,000 (often subsidized for HDB >$200k) | $300-$1,000 |
| Features | Full access (e.g., offset accounts) | Bank-specific |
Homejourney's bank rates page lets you compare refinancing packages from all major banks instantly: https://www.homejourney.sg/bank-rates.
When to Refinance Mortgage: Timing and Triggers
The best time refinance is at your lock-in period end, especially with rates dropping to 1.48%-1.8% p.a. for fixed packages versus HDB's 2.6%.[1] Act if your current rate exceeds market offers by 0.5%+ and your loan balance is over $200k for fee subsidies.
Interest rate trigger: Monitor SORA—refinance when 3M SORA dips below your effective rate. HDB owners saw 35-40% refinancing surge in past low-rate waves.[1] Check Homejourney's mortgage calculator for eligibility.
SORA (Singapore Overnight Rate Average) is the key benchmark for floating loans in Singapore, pegged by MAS. The chart below shows recent interest rate trends in Singapore:
As seen, rates fell sharply in 2025, driving refinancing from HDB loans.[1] Track live SORA on Homejourney to perfect your timing.
Financial Analysis: Calculate If It's Worth It
Compute break-even: (Upfront fees / Monthly savings) = months to recover. Example: $2,500 fees, $200 monthly savings = 12.5 months break-even. For a $500k HDB loan at 3% dropping to 1.6%, save ~$10k over 3 years post-break-even.[2]
Hidden costs: Clawback penalties if early exit, valuation ($150-$700 HDB), legal ($1,500 HDB).[4] Banks like DBS and OCBC offer full subsidies and cash rebates up to $3k+. Use Homejourney's multi-bank submission to get competing offers: one app via Singpass.
Repricing saves faster but caps at your bank's best—e.g., UOB's 1.5% 3-year fixed vs. a rival's 1.48%.[1] See our guide: How to Calculate If Refinancing Is Worth It in Singapore | Homejourney .
Step-by-Step Guide to Refinancing or Repricing
- Assess eligibility: TDSR <55% via Homejourney calculator. Gather payslips, CPF statements.
- Compare rates: On Homejourney bank rates, filter DBS, OCBC, UOB, HSBC, etc.
- Apply: Singpass for instant verification; submit once for multiple banks.
- Valuation & legal: Bank handles; 1-3 months for refinancing.
- Close & save: Track via Homejourney dashboard.
For repricing, notify your bank post-lock-in—no valuation needed. Insider tip: Negotiate rebates by mentioning rival offers—banks compete fiercely now.[5]
Money-Saving Strategies and Homejourney Tips
Combine refinancing with principal paydown for lower LTV and rates. Seek packages with free conversion after year 1.[1] HDB note: Can't revert to HDB loans post-bank switch.
- Compare on Homejourney: Let banks bid for your loan.
- Time via SORA tracker: Avoid mid-2026 moderation.[1]
- Read: Hidden Refinancing Costs in Singapore: Homejourney Break-even Guide .
Homejourney prioritizes your safety with verified rates and transparent processes—submit securely via Singpass.
FAQ: Refinancing vs Repricing in Singapore
Q: When should I refinance my HDB loan?
A: At lock-in end if bank rates <2.6% and savings exceed fees within 12-18 months. Use our calculator: https://www.homejourney.sg/bank-rates#calculator.
Q: What's the best time to refinance in 2026?
A: Early year while promotions last; monitor SORA drops. Refinancing peaked in 2025 lows.[1]
Q: Repricing vs refinancing fees for HDB?
A: Repricing ~$800; refinancing subsidized to $0 if >$200k balance.[4]
Q: Can I refinance multiple times?
A: Yes, every 2-3 years post-lock-in, but TDSR applies each time.
Q: How does Homejourney make it safe?
A: Verified partner banks, Singpass security, one-click multi-offers—no branch visits.
Disclaimer: This is general info; consult professionals. Rates as of late 2025.[1][3]
Ready to save? Compare refinancing vs repricing on Homejourney today: https://www.homejourney.sg/bank-rates. For full Singapore mortgage guide, see our pillar content. Build trust with verified decisions.
