Refinancing vs Repricing: Which is Better for You? | Homejourney
Repricing is better if you're within the same bank, lock-in period has ended, and you want quick savings with minimal hassle and costs under $1,000. Refinancing suits switching banks for lower rates or better features, ideal for larger savings despite higher upfront fees over $2,000.
Homejourney prioritizes your financial safety by providing transparent tools to compare options. This cluster article dives into Refinancing vs Repricing: Which is Better for You, linking back to our pillar guide on Singapore home loans. Discover actionable steps for HDB or private property owners, investors eyeing investment property refinance, or those with rental property refinance needs.[1][2][3]
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 terms. It involves legal processes to release and re-register your property title.[2][3]
Repricing is simpler: changing to a different interest package within your current bank after the lock-in period, often free or low-cost.[1][4]
Both leverage falling SORA rates—now at 1.34% for 3-month compounds, a 3-year low—driving more HDB owners to act. Homejourney lets you track real-time SORA rates and compare packages from DBS, OCBC, UOB, HSBC, Standard Chartered, and more at https://www.homejourney.sg/bank-rates.[1][4]
Key Differences: Costs, Timeline, and Savings
Repricing fees range from $300-$1,000 (often waived), with changes effective in 1 month. Savings start fast, like Ms Denise Chan's DBS switch from 3% to 1.6%, saving $500 monthly.[3][4]
Refinancing costs $2,000-$3,000+ (legal $1,500-$2,000 for HDB/private, valuation $150-$700), taking 2-3 months. Banks subsidize fees for loans over $200k on HDB properties.[2]
| Aspect | Refinancing | Repricing |
|---|---|---|
| Costs | $2,000-$3,000+ | $300-$1,000 |
| Timeline | 2-3 months | 1 month |
| Rate Options | All banks | Current bank only |
| Best For | Max savings, features | Speed, low hassle |
Refinancing maximizes investor mortgage or second property loan savings but watch clawback penalties if switching early.[2][3]
When SORA Rates Make Action Urgent
SORA-linked floating rates dominate, with 2-year fixed at 1.48% and 3-year at 1.5% popular. HDB loans at 2.6% push refinancing.[1]
The chart below shows recent interest rate trends in Singapore:
As seen, rates hit 3-year lows, but moderation expected mid-2026. Time moves now if your lock-in ends soon. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator for property portfolio refinancing scenarios.[1][5]
Break-Even Analysis: Is It Worth It?
Calculate break-even: (Upfront costs) / (Monthly savings) = months to recover. Example: $3,000 cost, $300 monthly save = 10 months break-even.
- Current rate 3%, new 1.5% on $500k loan (30 years): ~$750 monthly save.
- Refinance cost $2,500: Break-even ~3 months.
- Factor fire insurance (same) and promotions like cash rebates.[2]
For HDB from bank loans, note no return to HDB once switched. Investors, check Refinancing Investment Properties: Complete Guide for Singapore Owners ">Refinancing Investment Properties: Complete Guide for Singapore Owners for rental property refinance tips.[1]
Disclaimer: This is general advice; consult professionals. Rates as of early 2026.[1]
Step-by-Step Guide to Decide and Act
Step 1: Check lock-in expiry (typically 2-3 years). Use Homejourney to track.[3]
Step 2: Compare rates on https://www.homejourney.sg/bank-rates—DBS, OCBC, UOB, HSBC, etc. Submit one app via Singpass for multiple offers.
Step 3: Calculate savings with our tool. Negotiate rebates.
Step 4: Gather docs: NRIC, income proof, property title. Apply multi-bank via Homejourney—no branch visits.
Step 5: For repricing, contact current bank post-lock-in. Refinance? Let banks compete.
Timeline: Reprice 1 month; refinance 3 months. Perfect for upgraders searching via https://www.homejourney.sg/search.[2][3]
Best for Investors and HDB Owners
Investors benefit from refinancing for investment property refinance flexibility across banks. HDB owners: Refinance if bank rates <2.6%, but irreversible.[1]
Pro tips: Banks offer free conversion after year 1. Combine with offset accounts at top banks like UOB. See 最佳银行再融资利率比较2026 | Homejourney权威指南 ">最佳银行再融资利率比较2026 | Homejourney权威指南 .[1][2]
FAQ: Refinancing vs Repricing in Singapore
Q: Can I reprice before lock-in ends?
A: No, penalties apply. Wait or refinance if urgent.[3]
Q: What's the best refinancing rate now?
A: Around 1.48% for 2-year fixed. Compare on Homejourney for latest from 11+ banks.[1][5]
Q: HDB to bank refinance—risks?
A: Can't revert to HDB. Ensure long-term savings. Use our calculator.[1]
Q: How to save on fees?
A: Loans >$200k often fully subsidized. Multi-bank apps via Homejourney maximize rebates.[2]
Q: Investment property refinance worth it?
A: Yes for portfolios; frees equity. Details in our 如何计算再融资是否值得：新加坡房贷决策完全指南 ">如何计算再融资是否值得：新加坡房贷决策完全指南 .[2]
Ready to save? Start with Homejourney's safe, verified tools at https://www.homejourney.sg/bank-rates. Compare, calculate, apply—prioritizing your trust and security. For full coverage, read our pillar on Singapore home loans.
