Refinancing vs Repricing: Which is Better for You? Homejourney

Repricing suits you if staying with your current bank and acting fast is key, while refinancing is better for switching banks to secure lower rates and cash rebates when lock-in periods end. Both options help Singapore homeowners cut interest costs amid falling SORA rates, but the right choice depends on fees, timelines, and your loan situation. Homejourney makes it safe and simple to compare refinance rates from DBS, OCBC, UOB, and more.[1][2]

Understanding Refinancing vs Repricing in Singapore

Refinancing means switching your home loan to a new bank or lender, like moving from an HDB loan at 2.6% to a bank package at 1.55%-1.8%. Repricing is changing to a better package within the same bank after your lock-in period, often for a fee around $800.[1][2][5]

Homeowners with HDB flats have increasingly refinanced to bank loans as 3-month SORA hit 1.34%, the lowest in three years, saving up to $3,600 yearly on a $400,000 loan.[1] At Homejourney, we prioritize your trust by verifying rates from partner banks like DBS, OCBC, UOB, HSBC, and Standard Chartered, so you decide confidently.

This cluster dives deeper into refinancing vs repricing: which is better for you, linking back to our pillar guide on Singapore home loans. Use our refinance comparison tool for personalized insights.

Key Differences: Costs, Speed, and Savings

Repricing is faster—effective in about a month—with lower upfront costs of $800-$1,000. Refinancing takes 3 months or more due to legal and valuation fees over $2,000, but banks often subsidize these for loans above $300,000 (HDB) or $400,000 (private property).[2][5]

Refinancing unlocks better deals: lower rates, cash rebates, and features like free conversion after year one. For example, repricing with DBS to a 1.6% two-year fixed saved one homeowner $500 monthly.[4] Check Best Bank Refinancing Rates Comparison 2026 | Homejourney for latest offers.

Break-Even Analysis: Is It Worth It?

Calculate break-even by dividing total switching costs by monthly savings. Example: On a $500,000 loan, dropping from 3% to 1.6% saves ~$750/month. At $2,500 cost, break-even is 3-4 months.[2]

Estimate monthly savings: New rate x loan amount / 12 minus current.
Add costs: Legal (~$1,500 subsidized), valuation (~$500), possible clawback.
Divide costs by savings for months to recover.

Our mortgage calculator automates this. Read How to Calculate If Refinancing is Worth It: Homejourney Guide.

Current SORA Trends and Rate Environment

Floating rates pegged to 3M SORA + spread are popular at 1.48%-1.8%, below HDB's 2.6%.[1] Fixed options like 2-year at 1.48% offer stability. Refinancing activity surged in 2025 as rates fell, but may moderate mid-2026.[1]

The chart below shows recent interest rate trends in Singapore:

As seen, SORA's decline favors refinancing now. Track live rates on Homejourney to time your move perfectly.

When to Reprice vs Refinance: Step-by-Step Guide

Choose repricing if:

Mid-lock-in or TDSR tight—low admin, quick savings.[3]
Current bank offers competitive package post-lock-in.

Opt for refinancing if:

Lock-in ending—shop DBS, OCBC, UOB for rebates.[1][3]
Switching from HDB (note: can't return).[1][5]

Steps for either:

Check lock-in expiry (start 3-4 months early).[3]
Compare refinance rates on Homejourney—submit one app via Singpass to all banks.
Gather docs: NRIC, title deed, income proof.
Apply; expect 6-8 weeks for refinance.[3]
Negotiate: Ask for subsidies, extra rebates.

Timeline: Reprice in 1 month; refinance 3 months. Homejourney's multi-bank system lets banks compete, often yielding best refinancing rate.

Hidden Costs and Risks to Watch

Beyond fees, factor clawback (3 months interest if early exit), valuation gaps, and TDSR impact. HDB-to-bank switch is irreversible.[1][5] Always verify with Homejourney's tools for safety.

Pro tip: For HDB in mature estates like Toa Payoh, bank loans beat HDB rates long-term if holding 5+ years. See Hidden Costs of Refinancing.

Money-Saving Tips from Homejourney Experts

Switch mortgage rate pre-lock-in end for no penalties.[4]
Leverage promotions: DBS/OCBC cashback up to $2,000+.[1]
Use bank comparison refinance—one Singpass app gets offers from 11 banks.
Combine with goals: Refinance for cash-out if equity builds (private property only).
Monitor SORA; reprice yearly if floating.

Our platform verifies data transparently, prioritizing your security.

FAQ: Refinancing vs Repricing in Singapore

What is the difference between refinancing and repricing?
Repricing changes packages in the same bank (fee ~$800, 1 month). Refinancing switches banks (fees $2,000+, 3 months, better rates/rebates).[2][5]

Is refinancing worth it for my HDB loan at 2.6%?
Yes if bank rates <2% and loan >$300k—savings outweigh subsidized fees. Use Homejourney calculator; can't revert to HDB.[1][5]

How do I compare refinance rates safely?
Visit Homejourney bank-rates for real-time DBS, OCBC, UOB comparison. Submit once via Singpass for multiple offers.

When is the best time to refinance in 2026?
Now, with SORA lows, but act before mid-year moderation. Start 3 months pre-lock-in.[1][3]

Can I refinance private property too?
Yes, same process. Check property search for budget fits post-refinance.

Ready to save? Compare rates and apply today on Homejourney—your trusted partner for secure property decisions. Explore our pillar on Singapore mortgages for full coverage.

Disclaimer: Rates fluctuate; consult professionals. Homejourney provides info, not advice.