Refinancing vs Repricing: Which is Better for You
Refinancing typically offers greater long-term savings and flexibility for Singapore homeowners, but repricing is better if you want quick, low-cost changes within your current bank. At Homejourney, we prioritize your financial safety by providing transparent tools to save money refinancing and reduce mortgage payments. This cluster article dives into the key differences, helping you decide based on real 2025 data from HDB flat owners switching amid falling rates[1].
Whether you're an HDB upgrader in Tampines or a private property investor in Orchard, understanding these options ensures you lower interest rates without unnecessary risks. Link back to our pillar guide on Singapore home loans for full coverage: 再融资vs重新定价：新加坡房贷如何选择 | Homejourney指南 .
What is Refinancing vs Repricing?
Refinancing means switching your home loan to a new bank or lender, like moving from an HDB loan at 2.6% to a bank package at 1.55%-1.8%[1]. This involves a new loan agreement, property valuation, and legal work, but unlocks competitive offers from DBS, OCBC, UOB, HSBC, and more.
Repricing, however, keeps you with the same bank but switches to a better package, such as from a high-rate fixed to a low SORA-linked floating rate. It's simpler and faster, often free after the lock-in period[2][3].
Homejourney makes it safe to explore: compare rates from all major banks on our bank rates page and use our refinance savings calculator to project refinance savings[1].
Key Differences: Costs, Timelines, and Savings
Refinancing costs more upfront: legal fees ($1,500-$2,000 for HDB, $1,800-$2,000 for private), valuation ($150-$700), plus potential clawback if within lock-in[3][4]. Banks like OCBC often subsidize these for loans over $200k, making net costs low[1].
Repricing fees are minimal ($300-$1,000 admin fee), with processing in 1 month vs 3+ months for refinancing[3]. But savings are limited to your bank's offers.
| Factor | Refinancing | Repricing |
|---|---|---|
| Max Savings | Higher (shop banks) | Limited |
| Timeline | 3+ months | 1 month |
| Fees | $2,000+ (subsidized) | $300-$1,000 |
| Flexibility | High (new features) | Low |
For a $500k HDB loan at 3% dropping to 1.5%, refinancing saves ~$7,500/year in interest, breaking even in 4-6 months after fees[1][2].
Current Singapore Interest Rate Trends
Floating SORA rates hit 1.34% (3-month low in 3 years), driving HDB refinancing surges in 2025[1]. Popular packages: 2-year fixed at 1.48%, 3-year at 1.5% with free conversion[1].
The chart below shows recent interest rate trends in Singapore:
As seen, rates fell steadily, but moderation expected mid-2026[1]. Track live 3M/6M SORA on Homejourney to time your move perfectly.
When to Choose Refinancing Over Repricing
- Refinance if: Out of lock-in, HDB loan at 2.6%, or current bank rates exceed market (e.g., >1.8%). Ideal for cash rebates, offset accounts from banks like DBS or UOB[1][4].
- Reprice if: Happy with your bank, short on time, or minimal rate gap (<0.3%). Quick win for existing OCBC or HSBC customers[3].
Calculate break-even: (Fees / Monthly Savings) = Months to recover. Use Homejourney's mortgage calculator for precise refinance savings. Note: TDSR applies; refinancing recalculates based on current income/debts[2].
Real example: Tampines HDB owner refinanced $400k from HDB to bank loan, saving $500/month after subsidies[1].
Step-by-Step Guide to Refinancing or Repricing
- Check eligibility: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator. Verify lock-in end (typically 2-3 years).
- Compare rates: On Homejourney bank-rates, view DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, etc.
- Apply via Singpass: Submit one form for multi-bank offers – faster, secure verification.
- Documents: NRIC, payslips, property title, latest statements. Banks handle valuation.
- Negotiate: Leverage offers; aim for 0.1-0.2% lower rates or $2k+ rebates.
- Close: 1-3 months; track via Homejourney dashboard.
Disclaimer: This is general advice; consult Homejourney mortgage brokers for personalized guidance. Past HDB-to-bank switches can't revert[1].
Money-Saving Tips to Cut Mortgage Costs
- Time post-lock-in; refinance when SORA dips <1.5%[1].
- Haggle: "Match competitor's 1.48% fixed?" Banks compete via Homejourney apps.
- Combine with principal paydown for lower LTV, better rates.
- Grab promotions: Free conversions, legal subsidies from UOB, CIMB[1].
- Link to property search if upgrading within budget.
Read more: How to Save Money Refinancing Mortgage: Homejourney Guide and 如何计算再融资是否值得：新加坡房贷实用指南 | Homejourney .
Frequently Asked Questions (FAQ)
Q: Can I refinance my HDB loan to a bank?
A: Yes, if out of lock-in and TDSR-compliant. Many did in 2025 for 1.34% SORA rates vs 2.6% HDB[1]. Can't revert to HDB after.
Q: How much can I save refinancing?
A: $5k-$10k/year on $500k loans. Use Homejourney's refinance savings calculator for your numbers.
Q: What's the best bank for refinancing?
A: Compare on Homejourney – top 2025 rates from DBS/OCBC at 1.48%-1.5%[1]. Submit once for all offers.
Q: Is repricing free?
A: Often low-fee ($800 max), but check subsidies[3]. Faster but less savings.
Q: When to act in 2026?
A: Early year before moderation; track SORA on Homejourney[1].
Ready to cut mortgage costs? Start safely on Homejourney bank-rates – compare, calculate, apply securely. Trust Homejourney for verified rates and multi-bank bids in a transparent process. For full Singapore loan guide, see our pillar: .
