Refinancing vs Repricing: Which is Better for You
Refinancing is often better if you're switching banks for lower rates or better features, while repricing suits quick changes within your current bank with minimal hassle. Homejourney helps you compare options safely, ensuring transparent decisions in Singapore's property market.[1][2][3]
This cluster article dives into Refinancing vs Repricing: Which is Better for You, building on our pillar guide to Singapore home loans. As rates drop—with 3-month SORA at 1.34%, the lowest in three years—HDB and private property owners are acting.[1] Homejourney prioritizes your trust with verified rates from DBS, OCBC, UOB, and more.
What is Refinancing vs Repricing?
Repricing means switching to a new interest rate package with your existing bank after the lock-in period, typically free or low-cost ($300-$1,000).[2][3] It's fast—about 5 weeks—and ideal if your bank offers competitive SORA-linked rates like 1.48% for two-year fixed.[1]
Refinancing (or switching mortgage bank) involves moving your loan to a new bank, taking 13 weeks with costs like legal fees ($1,500-$2,000 for HDB) and valuation ($150-$700).[2] Banks often subsidize these for loans over $200,000, plus cash rebates.[1][2] Once you refinance from HDB's 2.6% loan, you can't return.[1]
Repricing limits you to one bank's packages; refinancing unlocks better rates across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and others.[2] Use Homejourney's bank rates page to compare instantly.
Key Differences: Refinancing vs Repricing Comparison
| Factor | Refinancing | Repricing |
|---|---|---|
| Timeline | 13 weeks[2] | 5 weeks[2][3] |
| Costs (no subsidy) | $2,500+[2] | $1,000 max[2] |
| Rate Options | All banks (e.g., 1.55%-1.8%)[1] | Current bank only[2] |
| Features | Interest offset, rebates[1][2] | Limited[2] |
Refinancing maximizes savings but requires effort; repricing is hassle-free for modest gains.[2][3] Check Homejourney's mortgage calculator for personalized insights.
Current Interest Rate Trends in Singapore
Floating SORA rates have fallen to 1.34%-1.8%, cheaper than HDB's 2.6%, driving refinancing waves like 35-40% YoY in 2019-2020.[1] Banks offer free conversions after year one.[1]
The chart below shows recent interest rate trends in Singapore:
As seen, rates may moderate mid-2026, so act now.[1] Track live SORA on Homejourney.
Financial Analysis: Calculate If It's Worth It
Compute break-even: (Fee savings difference) / (Monthly savings) = months to recover. Example: $2,500 fees, 0.5% rate drop on $500,000 loan saves ~$208/month—break-even in 12 months.[2] Factor clawback if early exit.
- HDB Example: From 2.6% HDB to 1.55% bank: ~$500/month savings on $400,000, but no HDB return.[1]
- Private Property: Switch OCBC to DBS for offset account, rebates up to $2,000+.[1][2]
Read our How to Calculate If Refinancing is Worth It. Homejourney verifies data for safe choices.
Refinancing Steps: How to Refinance in Singapore
Refinancing process:
- 3-6 months pre-lock-in: Compare on Homejourney bank-rates.[2]
- Apply: One form to DBS, UOB, etc., via Singpass—banks compete.[1][2]
- Valuation/Legal: New bank assesses; subsidies common.[2]
- Approval: 4-6 weeks; switch seamlessly.
- Post: Enjoy lower rates, track via Homejourney.
Full step-by-step guide. For repricing, contact your bank 1 month prior—simpler but limited.[3]
When to Choose Refinancing vs Repricing
Choose repricing for speed, no new features needed.[3] Opt for refinancing near lock-in end for best rates/features.[1][2] Mid-2026 moderation expected—refinance HDB now if savings exceed 1%.[1]
Insider tip: Negotiate rebates; Homejourney connects you to brokers for multi-bank offers. See best rates 2025.
Hidden Costs and Money-Saving Tips
Legal ($1,500+), valuation ($150+), possible clawback.[2] Banks waive for large loans; get cashback.[1] Tips: Use Homejourney's multi-bank app, time pre-lock-in, pair with property search on Homejourney search.
Details in hidden costs guide. Disclaimer: Not financial advice; consult professionals.
FAQ
Is refinancing better than repricing?
Yes for max savings/features; repricing for speed.[2]
How to refinance HDB loan?
Compare banks on Homejourney, apply via Singpass; can't revert to HDB.[1]
Refinance application timeline?
Start 3-6 months early; 13 weeks total.[2]
Switch mortgage bank costs?
$2,500+ subsidized often.[2]
Best banks for refinancing 2026?
DBS, OCBC, UOB—check our comparison.[1]
Ready for Refinancing vs Repricing: Which is Better for You? Start safely on Homejourney bank-rates—compare, calculate, apply. Link back to our pillar for full home loan guide.
