Refinancing vs Repricing: Which is Better for You? | Homejourney

Repricing is often better if you're happy with your current bank and want quick, low-cost savings, while refinancing suits those seeking the lowest rates from switching banks—but calculate break-even first to avoid hidden fees. This cluster article dives deep into refinancing vs repricing, helping Singapore homeowners decide between staying put or switching. As part of Homejourney's comprehensive home loan pillar guide, it provides tactical advice on the refinance difference, reprice mortgage options, and whether to switch banks or stay.

What is Refinancing vs Repricing in Singapore?

Repricing means switching to a better interest rate package within the same bank after your lock-in period ends, typically free or for a small fee of S$800–S$1,000[2][5]. It's fast—effective in about a month—and avoids legal hassles[2].

Refinancing, however, involves taking a new loan from a different bank, which can unlock lower rates like the current 1.48% two-year fixed packages, but incurs legal fees (S$2,000–S$3,000) and valuation costs[1][2][3]. Banks like DBS, OCBC, and UOB often subsidize these for loans over S$300K (HDB) or S$400K (private property), making net costs minimal[5].

Homejourney simplifies this: compare refinancing vs repricing rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more at https://www.homejourney.sg/bank-rates. Our platform prioritizes your safety with verified rates and Singpass integration for secure applications.

Key Differences: Costs, Speed, and Savings

Repricing keeps you with your bank (e.g., DBS to a lower DBS package) and starts savings sooner, ideal if your bank's offer beats competitors[1][2]. Refinancing lets banks compete—submit one application on Homejourney to get offers from multiple banks simultaneously, no branch visits needed.

Costs: Repricing: S$800 admin fee. Refinancing: Legal/valuation fees (often subsidized)[2][5].
Speed: Reprice: 1 month. Refinance: 3 months[2].
Flexibility: Refinancing accesses promotions like cash rebates; repricing may offer worse rates for existing customers[5].

With SORA at 3-year lows (1.34% for 3-month compounds), HDB owners saved S$500/month by repricing to 1.6% fixed[1][4]. Use Homejourney's refinancing calculator at https://www.homejourney.sg/bank-rates#calculator to model your loan repricing scenario.

SORA Rates and Current Market Trends

Singapore's home loans are pegged to SORA (Singapore Overnight Rate Average), now at historic lows driving a refinancing wave—HDB switches to banks up 60% YoY at OCBC[1]. Fixed rates (1.55%–1.8%) beat HDB's 2.6%[1].

The chart below shows recent interest rate trends in Singapore:

As seen, rates dropped sharply in 2025, but may moderate mid-2026[1]. Track live 3M/6M SORA on Homejourney to time your refinancing vs repricing perfectly. Note: HDB-to-bank switches are one-way[1].

When to Reprice Mortgage vs Refinance: Break-Even Analysis

Calculate break-even: Divide total switching costs by monthly savings. Example: S$400K loan at 3% to 1.6% saves ~S$500/month[4]. S$2,500 fees = 5-month break-even. Worth it if staying 5+ years.

Check lock-in expiry (avoid penalties).
Compare rates: Reprice if current bank matches best (e.g., DBS 1.48% fixed)[1].
Refinance if savings > costs—use Homejourney for multi-bank quotes.

Real example: HDB owner on $400K loan saves S$3,600 Year 1 switching to POSB[1]. For deeper math, see our pillar on How to Calculate If Refinancing Is Worth It | Homejourney . Insider tip: Negotiate subsidies—banks compete fiercely now.

Hidden costs: Clawback if early exit, processing fees. Always verify LTV/TDSR eligibility via Homejourney's tools.

Step-by-Step Guide: How to Proceed Safely

1. Assess: Use Homejourney calculator for borrowing power.

2. Compare: View rates from 11+ banks at https://www.homejourney.sg/bank-rates.

3. Apply: Singpass for instant verification; get competing offers.

4. Decide: Reprice for speed/same bank; refinance for best rate.

5. Track: Monitor via app. Homejourney ensures transparency—user feedback drives our verified rates.

Timeline: Reprice 1 month; refinance 2–3 months. Pro tip: Time before lock-in ends; combine with property search at https://www.homejourney.sg/search.

Money-Saving Tips and Homejourney Advantages

Negotiate: Leverage offers—get S$2K+ rebates.
Fixed vs floating: 90% HDB refinancers pick fixed for stability[1].
Multi-bank: Homejourney submits to DBS/OCBC/UOB/HSBC et al. at once.
Post-refi: Budget for maintenance via Aircon Services .

Disclaimer: This is educational; consult advisors. Rates as of early 2026[1][4]. For 2026 comparisons, check Best Bank Refinancing Rates Comparison 2026 | Homejourney .

FAQ: Refinancing vs Repricing in Singapore

Q: What's the main refinance difference from repricing?
A: Repricing stays with your bank (lower fees, faster); refinancing switches banks (potentially lower rates, higher upfront costs)[2][5].

Q: Is now a good time to reprice mortgage?
A: Yes, with SORA lows, but act before mid-2026 moderation[1]. Use Homejourney for real-time rates.

Q: Can I refinance HDB loan multiple times?
A: Yes to banks, but not back to HDB[1][5].

Q: How much does refinancing cost?
A: S$2K–S$3K, often subsidized for larger loans[3][5].

Q: Switch banks or stay?
A: Switch if savings exceed 3–6 months costs; stay for simplicity.

Ready to save? Start with Homejourney's safe, trusted platform: compare refinancing vs repricing at https://www.homejourney.sg/bank-rates. Link back to our pillar for full home loan mastery. Your secure property journey starts here.