Refinancing vs Repricing: Which is Better for You? Homejourney
Refinancing is often better if you're seeking maximum savings and flexibility across banks like DBS, OCBC, and UOB, while repricing suits quick switches within your current bank. Homejourney helps you compare refinancing rates comparison safely, prioritizing your trust and security. This cluster guide breaks down the differences with actionable steps for Singapore homeowners.
As part of our pillar guide on Singapore home loans, this focused article dives into Refinancing vs Repricing: Which is Better for You. With SORA rates at a 3-year low of 1.34% p.a., more HDB owners are switching to bank loans cheaper than HDB's 2.6%.[1] Use Homejourney's tools to decide confidently.
Refinancing vs Repricing: Key Differences Explained
Repricing means switching to a better interest rate package with your existing bank after the lock-in period, typically free or low-cost ($300-$1,000 admin fee).[2][3] It's fast—approval in 1-3 days, effective in about 1 month.[2]
Refinancing involves taking a new loan from another bank, like from DBS to OCBC, accessing wider options such as fixed rates at 1.48%-1.5% or SORA-linked packages.[1][3] It takes 13 weeks and costs $2,000-$2,500 in legal ($1,500 HDB/$1,800 private) and valuation fees ($150-$700), though banks often subsidize for loans over $200k.[3]
| Factor | Refinancing | Repricing |
|---|---|---|
| Timeline | 13 weeks | 5 weeks |
| Costs (no subsidy) | $2,500 | $1,000 max |
| Savings Potential | Higher (multi-bank) | Limited |
| Flexibility | Full (features, rates) | Bank-specific |
Refinancing wins for best bank refinance Singapore options from top banks refinancing like HSBC or Standard Chartered.[3] Homejourney lets you compare DBS OCBC UOB refinance offers instantly at https://www.homejourney.sg/bank-rates.
When to Choose Refinancing Over Repricing
Opt for refinancing if your current rate exceeds 2.6% (HDB benchmark) and banks offer 1.55%-1.8% packages with cash rebates.[1] HDB owners can't revert, so calculate long-term savings—essential for upgraders in areas like Punggol or Tengah.
Reprice if time is short or you value simplicity, like switching to your bank's 2-year fixed at 1.48% with free conversion after year 1.[1] Start 3-6 months before lock-in ends for refinancing, 1 month for repricing.[3]
The chart below shows recent interest rate trends in Singapore:
SORA dropped to 1.34%, driving 2025 refinancing surges, especially HDB to banks.[1] Track live rates on Homejourney for perfect timing.
Break-Even Analysis: Is It Worth It?
Calculate break-even: (Upfront costs) / (Monthly savings) = months to recover. Example: $2,500 fees, 0.5% rate drop on $500k loan saves $208/month—break-even in 12 months.[3] Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator.
Factor clawback (3 months interest if early exit), fire insurance, and subsidies. For a $800k HDB in Bedok, refinancing to OCBC's 1.5% SORA saves $10k/year vs 3% rate, post 3-month break-even.
- Input loan amount, current rate, new rate on Homejourney calculator.
- Add fees (subsidized often fully for >$200k).
- Project 2-5 years: refinancing typically saves more.[3]
Read our guide on How to Calculate If Refinancing is Worth It for details.
Step-by-Step Guide to Refinancing or Repricing
1. Assess eligibility: 80% LTV max, check via Homejourney's tool using Singpass.
2. Compare rates: View refinance offers from DBS, UOB, Maybank on Homejourney—one submission gets multi-bank bids.
3. Gather docs: NRIC, income proof, property title (HDB/URA portals).
4. Apply: Via Homejourney for instant verification, no branch visits.
5. Close: 3 months for refinance; pay subsidized fees. Insider tip: Negotiate rebates—banks compete fiercely now.[1]
For HDB flats, note no-return policy post-bank switch.[1] Link to Hidden Costs & Best Time to Refinance.
Top Money-Saving Tips for Singapore Homeowners
- Submit via Homejourney: Banks like CIMB, RHB compete, offering higher rebates.
- Time pre-lock-in: Mid-2026 moderation expected as 2023 loans refinance.[1]
- Combine with offset accounts: Refinance to banks with best features.
- Monitor SORA: Homejourney tracks 3M/6M rates live.
- Search budgeted properties on https://www.homejourney.sg/search post-refinance.
Disclaimer: This is educational; consult professionals. Rates as of late 2025.[1]
FAQ: Refinancing vs Repricing in Singapore
Q: What's the difference between refinancing and repricing?
A: Repricing is internal bank switch (fast, low cost); refinancing is new bank loan (better rates, higher cost).[2][3]
Q: Which banks have the best refinancing rates?
A: Compare best bank refinance Singapore from DBS, OCBC, UOB, HSBC on Homejourney's bank rates page. Packages from 1.48%.[1]
Q: Can I refinance my HDB loan?
A: Yes, to banks at lower rates, but no HDB revert. Ideal if >0.7% savings.[1]
Q: How much does refinancing cost?
A: $2k-$2.5k, often subsidized. Break-even quick at current rates.
Q: When to refinance vs reprice?
A: Refinance for max savings; reprice for speed. Use our pillar guide for full analysis.
Ready for Refinancing vs Repricing: Which is Better for You? Start comparing on Homejourney today—safe, transparent, user-first. Visit our bank rates for refinancing rates comparison and apply securely.
