Refinancing vs Repricing: Which is Better for You? Homejourney

Repricing is often better if you're happy with your current bank and want minimal hassle, while refinancing saves more when switching banks for lower rates and promotions like cash rebates. Homejourney prioritizes your financial safety by helping you compare options transparently. This cluster article dives into the key differences, with actionable steps tailored for Singapore HDB and private property owners.

As part of our broader pillar guide on Singapore home loans, this focuses on refinancing vs repricing to help you cut costs amid falling SORA rates. With rates at 3-year lows around 1.34% for 3-month SORA, now's the time to act—but choose wisely to avoid hidden fees.

What is Refinancing vs Repricing?

Refinancing means switching your home loan to a new bank, like from DBS to OCBC, to access better rates or features. It involves legal fees and valuation but often comes with bank subsidies for loans over $300K (HDB) or $400K (private property).

Repricing is staying with your current bank and switching to a better package after your lock-in period, typically costing $800-$1,000 in admin fees. No lawyer needed, but rates may not match new-customer promotions from other banks.

In Singapore, HDB owners refinancing from the 2.6% concessionary rate to bank loans at 1.55%-1.8% can save significantly, but note: you can't switch back to HDB loans once you leave.

Key Differences: Costs, Savings, and Eligibility

Refinancing offers wider options from banks like DBS, OCBC, UOB, HSBC, and Standard Chartered, often with cash rebates and free conversions after year one. Repricing limits you to your bank's packages, which are usually less competitive for existing customers.

Aspect	Refinancing	Repricing
Cost	Legal + valuation (subsidized)	$800-$1,000 fee
Rates Access	Best from all banks	Current bank only
Flexibility	High (new features)	Low
Break-even	6-12 months	Immediate

Use Homejourney's bank rates comparison for best bank refinance Singapore options from top banks like DBS, OCBC, UOB.

Current Interest Rate Trends in Singapore

Floating rates pegged to 3-month SORA have dropped to 1.34%, the lowest in three years, driving refinancing surges—OCBC saw 60% more HDB switches in 2025. Fixed rates start at 1.48% for 2-year packages.

The chart below shows recent interest rate trends in Singapore:

As seen in the chart, rates bottomed out in late 2025, with modest declines expected in 2026. Track live SORA on Homejourney to time your move.

Financial Analysis: Calculate Your Savings

For a $400K HDB loan, switching from 2.6% HDB to 1.6% bank saves ~$3,600 yearly. Break-even for refinancing: divide costs (~$2,000 post-subsidy) by monthly savings ($300) = 7 months.

Check remaining lock-in via bank statements.
Estimate savings: New rate x loan amount x remaining tenure.
Subtract fees using Homejourney's refinancing calculator.
Refinance if break-even <12 months; repricing otherwise.

Hidden costs include clawback if you refinance early. See our hidden costs guide. For refinancing rates comparison, compare DBS OCBC UOB refinance offers on Homejourney.

When to Choose Refinancing Over Repricing

Opt for refinancing if your lock-in ends soon and better rates exist elsewhere—ideal for HDB upgraders or investors. Popular 2026 packages: 1.48% 2-year fixed with free repricing after year one.

Reprice if loyal to your bank (e.g., DBS for seamless Singpass integration) or costs outweigh savings. With rates stabilizing mid-2026, act before promotions end.

Step-by-Step Guide to Refinancing or Repricing

1. Assess eligibility: Loan >$300K, good credit, TDSR compliant.

2. Compare rates: Use Homejourney for top banks refinancing like HSBC, Maybank, CIMB.

3. Apply multi-bank: Submit once via Homejourney—get offers from all partners. Use Singpass for instant verification.

4. Select offer: Negotiate rebates (up to 0.35% cashback).

5. Complete: 4-6 weeks; lawyers handle redemption. Track via Homejourney dashboard.

Full details in our step-by-step refinancing guide.

Money-Saving Tips from Homejourney Experts

Time for lock-in expiry to avoid penalties.
Leverage competition: Let banks bid via Homejourney's multi-application.
Combine with property search on Homejourney property search for upgrades.
Check best bank refinancing rates 2026 for refinance offers.

Disclaimer: This is general advice; consult Homejourney mortgage brokers or financial advisors. Rates as of early 2026; subject to change per MAS guidelines.