Refinancing vs Repricing: Which is Better for You? Homejourney
Refinancing is often better than repricing if you can secure a significantly lower rate from another bank, as it provides access to better packages, cash rebates, and promotions—potentially saving thousands annually on your Singapore home loan. Repricing suits those wanting minimal hassle within the same bank but usually offers less competitive rates. Homejourney helps you decide with our safe, transparent tools like real-time rate comparisons from DBS, OCBC, UOB, and more.
This cluster article dives deep into Refinancing vs Repricing: Which is Better for You, building on our pillar guide to Singapore home loans. As rates hit 3-year lows in 2026, HDB and private property owners are switching to cut costs—many from HDB's 2.6% concessionary rate to bank loans at 1.48%-1.8%[1][3]. At Homejourney, we prioritize your safety by verifying rates and simplifying multi-bank applications.
What is Refinancing vs Repricing in Singapore?
Refinancing means switching your home loan to a new lender, like moving from DBS to OCBC for a lower rate. It involves legal and valuation fees (S$2,000-S$3,000 typically), but banks often subsidize these for loans over S$300K (HDB) or S$400K (private)[2][4]. Repricing is staying with your current bank and changing packages after the lock-in period, costing S$800-S$1,000 in admin fees[3][4].
Note: HDB loan holders can't return to HDB after refinancing to banks—decide wisely[1]. Private properties can only refinance via banks[4]. Use Homejourney's bank-rates page to compare refinance rates safely without visiting branches.
Key Differences: Refinancing vs Repricing Comparison
| Aspect | Refinancing | Repricing |
|---|---|---|
| Lender Change | Yes (e.g., DBS to UOB) | No (same bank) |
| Costs | Legal/valuation (subsidized) | Admin fee S$800-S$1,000 |
| Rates Available | Best across banks (1.48% fixed) | Current bank's packages only |
| Flexibility | New features, rebates | Limited |
Refinancing wins for bigger savings, especially with 2026 promotions like free conversions after year 1[1]. See our mortgage calculator for refinance comparison tool.
Current Singapore Interest Rate Trends (SORA-Based)
Floating rates pegged to 3-month SORA are at 1.34%, the lowest in 3 years, driving refinancing waves—HDB switches to OCBC up 60% in 2025[1]. Fixed rates start at 1.48% for 2-years[1].
The chart below shows recent interest rate trends in Singapore:
As seen, rates dropped sharply, but moderation expected mid-2026[1]. Track live SORA on Homejourney to time your switch mortgage rate.
Financial Analysis: Calculate If It's Worth It
Break-even: Divide costs by monthly savings. Example: S$400K loan at 3% to 1.6% saves ~S$500/month[3]. S$2,500 costs = break-even in 5 months. Real HDB case: S$3,600 first-year savings[1].
- Current monthly payment: Use Homejourney calculator.
- New rate quote: Compare refinance rates from HSBC, Standard Chartered via Homejourney.
- Costs: Factor subsidies—minimal for large loans[4].
- Break-even <12 months? Proceed.
Read How to Calculate If Refinancing is Worth It. Avoid clawback if recent refinancing[4].
When to Refinance vs Reprice: Timing Tips
Refinance post-lock-in (2-3 years typical). Ideal now with low SORA, but act before mid-2026 moderation[1]. Reprice if happy with bank but need quick tweak. HDB owners: Bank loans beat 2.6%[1].
- Lock-in ending soon? Shop banks.
- Rate gap >0.5%? Refinance.
- Minimal change needed? Reprice.
Insider tip: Banks like DBS offer cash rebates—negotiate via Homejourney's multi-bank submission.
Step-by-Step Guide to Refinancing with Homejourney
- Compare: Visit bank-rates for best refinancing rate from 11 banks (Maybank, CIMB, etc.).
- Calculate: Use eligibility tool.
- Apply: One form via Singpass—banks compete with offers.
- Documents: NRIC, income proof, property title (auto-filled via Singpass).
- Timeline: 2-4 weeks; lawyers handle redemption[6].
Safer than branches—Homejourney verifies everything. See How Homejourney Makes Refinancing Easier.
Money-Saving Strategies & Hidden Costs
Negotiate: Leverage offers from UOB, RHB—Homejourney brokers help. Watch valuation (~S$500, often subsidized), legal fees. No HDB revert[1]. Combine with projects for upgrades.
Disclaimer: Rates fluctuate; consult advisors. Homejourney provides info, not advice.
FAQ: Refinancing vs Repricing in Singapore
Q: Which saves more, refinancing or repricing?
A: Refinancing typically, with better rates and rebates—e.g., 1.48% vs current bank's higher offer[1][5].
Q: How much are bank comparison refinance costs?
A: S$2-3K subsidized; cheaper than multiple repricings[2][4].
Q: Can I refinance HDB to bank and back?
A: No, one-way to banks[1].
Q: Best time for refinance comparison tool in 2026?
A: Now, before mid-year[1]. Use Homejourney's live rates.
Q: How to switch mortgage rate easily?
A: Multi-bank app on Homejourney—one click, multiple offers.
Ready to save? Start with Homejourney's secure bank-rates comparison today. Link back to our pillar: Singapore Home Loans Guide for full coverage. Trust Homejourney for verified, user-first property decisions.
