Refinancing vs Repricing: Which is Better for You? | Homejourney
Refinancing is often better if you're switching banks for lower rates or better features, while repricing suits quick changes within your current bank after the lock-in period. The choice depends on your savings potential, costs, and timeline. Homejourney helps you compare options safely from DBS, OCBC, UOB, HSBC, and more to maximize trust and transparency in your decision.[1][2][3]
Understanding Refinancing vs Repricing in Singapore
Refinancing means taking a new loan from a different bank to replace your existing mortgage, often for lower rates or added features like interest offset accounts. Repricing is switching to a new interest package within the same bank, typically after your lock-in period ends. Both aim to cut costs amid falling rates—SORA hit 1.34% p.a., the lowest in three years, driving HDB owners to bank loans below HDB's 2.6%.[1][2]
Homejourney prioritizes your safety by verifying rates from partner banks like DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and others. Use our bank rates page to see real-time comparisons and calculate savings instantly.
Key Differences: Costs, Timelines, and Savings
Repricing is faster (about 5 weeks) and cheaper (fees $300-$1,000, often waived), ideal near lock-in end. Refinancing takes 13 weeks with higher costs ($2,000-$3,000 for legal and valuation fees), but unlocks better rates across banks.[2][3][4]
| Factor | Refinancing | Repricing |
|---|---|---|
| Timeline | 13 weeks | 5 weeks |
| Costs (no subsidies) | $2,500+ (legal $1,500-$2,000 HDB, valuation $150-$700) | $300-$1,000 |
| Rate Options | All banks (e.g., 1.48% 2-yr fixed) | Current bank only |
| Features | Full (offset accounts, rebates) | Limited |
For HDB loans over $200k, banks often subsidize all refinancing fees. Cash rebates from OCBC or DBS can offset costs further.[1][2]
When to Refinance Mortgage: Timing and Triggers
The best time to refinance is 3-6 months before your lock-in ends, when rates drop like now at 3-year lows. Watch for interest rate triggers: if new rates are 0.5%-1% lower, act. Post-2025, refinancing from HDB surged 35-40% YoY as bank rates fell to 1.55%-1.8%.[1]
Track SORA on Homejourney—submit one application via Singpass to DBS, UOB, and others for competing offers. For mortgage calculator, input your loan to see break-even: divide fees by monthly savings. Example: $3,000 fees saving $500/month breaks even in 6 months.[2][5]
The chart below shows recent interest rate trends in Singapore:
Rates have stabilized post-drop, but mid-2026 moderation expected—refinance now if locked at 3-4%.[1]
Break-Even Analysis: Is It Worth It?
Calculate: (Total fees) / (Monthly savings) = months to break even. Example: $500k HDB loan at 2.6% ($2,167/month) to bank 1.6% ($1,333/month) saves $834/month. $2,500 fees = 3-month break-even, netting $10,000/year savings. Use Homejourney's tools for your numbers.[2]
Hidden costs: clawback if early exit, fire insurance (same as current). HDB switchers can't revert, so confirm long-term fit.[1] See our How to Calculate If Refinancing Is Worth It for details.
Step-by-Step Guide to Refinancing or Repricing
- Check lock-in end: Start 3-6 months early for refinancing, 1 month for repricing.[2]
- Compare rates: On Homejourney bank-rates, view DBS 1.48% fixed, OCBC promos.
- Calculate savings: Use our calculator.
- Apply: Singpass for multi-bank submission—get offers fast.
- Prepare docs: Income proof, property title, CPF statements.
- Close: 5-13 weeks; banks handle legal for HDB subsidies.
Timeline: Repricing by month-end; refinancing by Q2. Insider tip: Negotiate rebates—leverage offers from UOB vs HSBC.[3][5]
Money-Saving Tips and Homejourney Advantages
- Lock free conversion after year 1 for flexibility.[1]
- Combine with property search on Homejourney search for upgrades.
- Track SORA live to time refinance timing perfectly.
- Let banks compete: One app yields multiple bids.
Disclaimer: Rates fluctuate; consult Homejourney brokers for personalized advice. This isn't financial advice—verify eligibility under TDSR/MSSR.[1][2]
FAQ: Refinancing vs Repricing in Singapore
What is the best time to refinance my mortgage?
When lock-in ends and rates drop 0.5%+, like now at 1.34% SORA. Start 3-6 months early.[1][2]
Refinancing vs repricing: Which saves more?
Refinancing for max savings across banks; repricing for speed/low hassle. Break-even under 12 months? Go for it.[2][3]
Can I refinance HDB loan multiple times?
Yes to banks, but not back to HDB. Subsidies if >$200k outstanding.[1]
What fees for repricing DBS/OCBC?
$800 typical, often waived. Refinancing: $2k+ subsidized.[3][5]
How to start on Homejourney?
Visit bank-rates, calculate, apply via Singpass.
Ready to save? Compare refinancing rates on Homejourney today. For full coverage, read our pillar When to Refinance Home Loan in Singapore. Homejourney ensures safe, verified decisions—your trust is our priority.
