Refinancing vs Repricing: Which is Better for You | Homejourney
Repricing is better if you're within the same bank, want quick savings, and face low fees under S$1,000; refinancing suits switching banks for maximum rate cuts but costs S$2,000+ in legal and valuation fees. Homejourney helps you decide safely with transparent comparisons from DBS, OCBC, UOB, and more. This cluster dives deep into costs and strategies, linking to our pillar guide on Singapore Home Loans: Complete 2026 Guide for full coverage.
What is Refinancing vs Repricing in Singapore?
Refinancing means switching your home loan to a new bank or lender, like from HDB to DBS or OCBC, to secure better rates or features. Repricing is simpler: changing interest packages within your current bank after the lock-in period, often free or low-cost. In 2025-2026, falling SORA rates at 1.34% (3-month low) have driven HDB owners to refinance for bank loans below HDB's 2.6%[1][5].
Homejourney verifies these trends in real-time. For HDB flats over S$200,000 outstanding, banks often subsidize full refinancing costs, making it viable[2]. Repricing suits if your bank like UOB offers competitive SORA packages without hassle.
Key Differences: Costs, Timelines, and Savings
Repricing fees range S$300-S$1,000 (admin only), takes 1 month[2][3]. Refinancing costs hit S$2,000-S$3,000: legal fees refinancing S$1,500 (HDB)-S$2,000 (private), valuation fee S$150-S$700, plus potential clawback penalty if switching early[2][3][4]. Many banks waive these for HDB loans above S$200k[2].
| Aspect | Refinancing | Repricing |
|---|---|---|
| Costs | S$2,000-S$3,000 (waivers common) | S$300-S$1,000 |
| Timeline | 2-3 months | 1 month |
| Rate Options | All banks (e.g., 1.48% 2-yr fixed) | Current bank only |
| Best For | Max savings, features | Speed, low effort |
Refinancing maximizes savings but watch hidden fees refinance like fire insurance (same as current). Example: Ms. Chan repriced DBS from 3% to 1.6%, saving S$500/month[5].
Current SORA Trends Driving Decisions
SORA (Singapore Overnight Rate Average) is Singapore's key benchmark, with 3M SORA at 1.34%—lowest in 3 years[1]. Banks peg loans to it for floating rates. Fixed options like 2-year at 1.48% are popular[1].
The chart below shows recent interest rate trends in Singapore:
Rates dipped in late 2025, boosting refinancing, but may stabilize mid-2026[1]. Track live on Homejourney bank rates for DBS, OCBC, UOB, HSBC timing.
When Refinancing Wins Over Repricing
Choose refinancing if rates differ >0.5% across banks, need features like interest offset accounts, or HDB-to-bank switch (irreversible)[1][6]. Savings example: S$500k loan at 3% to 1.5% saves S$10,000/year, break-even in 6-12 months post-fees[2]. For investors in areas like Punggol or Tengah, combine with Projects for value-up potential.
- Lock-in ending soon? Compare via Homejourney.
- Outstanding >S$200k HDB? Full fee subsidies likely[2].
- Want cash rebates? Banks like OCBC offer them[1].
Repricing if time-poor or happy with current bank—limited but fast[3]. See Hidden Costs of Refinancing for details.
Step-by-Step: How to Evaluate and Act
- Check eligibility: Use Homejourney mortgage calculator for borrowing power.
- Compare rates: View DBS, UOB, HSBC on Homejourney—submit one app via Singpass to all.
- Calculate break-even: (Monthly savings x 12) / total fees. Aim <12 months. Details in How to Calculate If Refinancing is Worth It.
- Apply: Multi-bank submission—banks compete. Track SORA live.
- Post-switch: Budget for maintenance via Aircon Services .
Timeline: Reprice 1 month; refinance 3 months[3]. Insider tip: Start 4 months pre-lock-in end to avoid penalties.
Homejourney Makes It Safe and Simple
Homejourney prioritizes your trust: compare rates from 11 banks (Maybank, CIMB, RHB included), auto-fill via Singpass, get multiple offers from one app. No branch visits—our brokers guide fee-free. Verify properties on Property Search post-refinance.
Disclaimer: Rates fluctuate; consult professionals. Homejourney verifies data for confident decisions, not financial advice.
FAQ: Refinancing vs Repricing Singapore
What are typical refinancing costs in 2026?
Legal fees refinancing S$1,500-S$2,000, valuation fee S$150-S$700, often waived for HDB >S$200k. Total S$2,500 max[2].
Is there a clawback penalty for refinancing?
Yes, if switching before lock-in (1-3 years), up to 1.5% of loan. Wait it out[4].
Repricing vs refinancing: which saves more?
Refinancing for >0.3% rate drop; reprice for speed. Use Homejourney calculator.
Can I refinance HDB to bank and back?
No, irreversible[1]. Banks now beat HDB 2.6%.
Best banks for refinancing 2026?
Check Homejourney for live DBS/OCBC rates at ~1.48%[1].
Ready to save? Start with Homejourney bank rates—compare, calculate, apply securely. Explore our pillar Singapore Home Loans Guide for more.
