Refinancing vs Repricing: Which is Better for You? | Homejourney
Refinancing is often better than repricing if you're seeking maximum savings and flexibility, especially with current low rates from 1.34% on SORA-linked packages. It lets you switch banks for better deals from DBS, OCBC, UOB, and others, while repricing keeps you with your current bank but limits options. Homejourney makes it safe and simple to compare and apply across banks in one place.
This cluster article dives into refinancing vs repricing: which is better for you, building on our pillar guide to Singapore mortgage refinancing. With rates at 3-year lows, HDB owners are switching to bank loans below HDB's 2.6% rate[1]. Trust Homejourney for verified insights to make confident decisions.
What is Refinancing vs Repricing?
Repricing means switching to a different interest rate package within your existing bank, typically after the lock-in period. It's quicker with fees around $300-$1,000, but options are limited to what your bank offers[2][4].
Refinancing (or switch mortgage bank) involves moving your loan to a new bank for potentially lower rates or better features like cash rebates and free conversions. Costs are higher ($2,500+ for legal and valuation fees), but banks often subsidize for loans over $200,000 on HDB properties[2]. Note: HDB loans don't reprice; you can only refinance to banks, and can't return to HDB[3].
At Homejourney, compare refinancing rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more at https://www.homejourney.sg/bank-rates. Our platform prioritizes your safety with Singpass integration for secure applications.
Key Differences: Costs, Savings, and Hassle
Repricing suits those wanting least hassle—done in weeks with admin fees only. But you miss out on competitor rates and promotions[2].
| Factor | Refinancing | Repricing |
|---|---|---|
| Costs | $1,500-$2,500 (often subsidized) | $300-$1,000 |
| Savings Potential | High (e.g., 1.48% fixed vs current 3-4%) | Limited |
| Timeline | 4-8 weeks | 2-4 weeks |
| Features | Full access (rebates, offsets) | Bank-specific |
Refinancing maximizes savings: On a $400,000 loan, switching could save $3,600 in year one[1]. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator to check.
Current Singapore Rates and Trends
Floating SORA rates hit 1.34% (3-month), with fixed at 1.48%-1.8%—below HDB's 2.6%[1]. Banks like OCBC and POSB see surging HDB refinances[1].
The chart below shows recent interest rate trends in Singapore:
As seen, rates dropped significantly in 2025, driving refinancing waves like 2019-2020's 35-40% surge[1]. Expect moderation mid-2026 as early refinancers lock in[1]. Track live SORA on Homejourney.
When Refinancing Wins Over Repricing
Choose refinancing if your lock-in ends soon, loan >$200k, and tenure >5 years[4]. Ideal for HDB owners or those wanting features like interest offset accounts or cashback—unavailable via repricing[2].
Repricing fits if time-poor or happy with your bank. But with banks competing (e.g., free repricing after year 1[1]), refinancing often yields better holistic options[2].
Refinancing Steps: How to Refinance in Singapore
Follow these refinancing steps for a smooth refinance process:
- Check Eligibility: 4 months pre-lock-in expiry, balance >$100k, tenure >5 years[4]. Use Homejourney's eligibility calculator.
- Compare Rates: Via https://www.homejourney.sg/bank-rates—submit one refinance application to all banks.
- Gather Docs: NRIC, property title, income proof, Singpass-ready.
- Apply: Banks value property ($150-$700 fee, often waived[2]).
- Legal & Close: 4-8 weeks; get rebates.
Pro tip: Time for falling SORA—Homejourney tracks real-time. See our Step-by-Step Guide to RefinancingStep-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney .
Calculate Savings: Break-Even Analysis
Factor fees, clawbacks, and rate drops. Example: $400k loan at 3% to 1.5% saves ~$6,000/year, breaking even in 6 months post-fees[1][2].
Hidden costs: Legal ($1,500 HDB), valuation ($150+), fire insurance[2]. Banks subsidize for big loans. Read Hidden Costs of RefinancingHidden Costs of Mortgage Refinancing You Need to Know | Homejourney . Use How to Calculate If Worth ItHow to Calculate If Refinancing is Worth It | Homejourney .
Tips to Maximize Savings
- Negotiate: Let banks compete via Homejourney's multi-bank submission.
- Grab rebates: Up to full fee waivers + cash.
- Avoid TDSR issues: Pay down 3% if needed[4].
- Combine with property search on https://www.homejourney.sg/search.
Disclaimer: This is general info; consult advisors. Rates as of 2026[1]. Homejourney verifies data for trust.
FAQ: Refinancing vs Repricing in Singapore
1. How to refinance my HDB loan?
Switch to banks via Homejourney—rates beat 2.6%. Can't revert to HDB[1][3].
2. What are refinancing steps?
See our numbered guide above; start at bank-rates.
3. Is repricing free?
No, $300-$1,000; refinancing often subsidized[2].
4. Best banks for refinancing 2026?
Compare DBS, OCBC, UOB on Homejourney. See Best Rates ComparisonBest Bank Refinancing Rates Comparison 2026 | Homejourney .
5. When to refinance vs reprice?
Refinance for max savings; reprice for speed[2].
Ready for refinancing vs repricing: which is better for you? Compare now at https://www.homejourney.sg/bank-rates and link back to our full Mortgage Refinancing Guide. Homejourney ensures safe, transparent choices.
