Refinancing vs Repricing: Which is Better for You? Homejourney
Repricing is better if you want quick savings with minimal hassle and fees under $1,000, while refinancing suits those seeking the lowest rates from any bank despite higher costs of $2,000+ and a longer process. Homejourney prioritizes your financial safety by providing transparent comparisons so you can make trusted decisions without surprises. This cluster article dives into the key differences, helping Singapore homeowners like HDB upgraders in areas such as Punggol or Tengah evaluate options confidently.
As part of our pillar guide on Singapore Mortgage Essentials, this focused piece offers tactical advice on refinancing vs repricing: which is better for you. With SORA rates at 3-year lows around 1.34% p.a., more HDB owners are switching from the 2.6% HDB loan to bank packages at 1.55%-1.8%.[1][6]
Refinancing vs Repricing: Key Definitions
Repricing means switching to a better interest rate package with your current bank after the lock-in period, often free or for $300-$1,000 in admin fees.[2][3] It's fast—new rates kick in within a month.[3]
Refinancing (or switch mortgage bank) involves taking a new loan from a different bank, releasing your property title deed, and incurring legal fees ($1,500 HDB/$1,800 private) plus valuation ($150-$700).[2] The process takes 2-3 months but accesses promotions across DBS, OCBC, UOB, HSBC, and more.[1]
Note: HDB loans don't reprice—they only refinance to banks, and you can't switch back.[1][5] Homejourney verifies all data to ensure you avoid pitfalls in Singapore's regulated market under MAS guidelines.
Costs Breakdown: Refinancing Steps vs Repricing
Repricing costs: Mainly admin fees ($800 avg), sometimes waived.[3] No valuation or legal work needed.
Refinancing costs: Legal ($1,500-$2,000), valuation ($150-$700), possible clawback if within lock-in. Banks like DBS/OCBC often subsidize fully for HDB loans over $200k outstanding.[2] Fire insurance remains similar.
| Refinancing | Repricing | |
|---|---|---|
| Fees | $2,000-$3,000 (subsidized often) | $300-$1,000 |
| Timeline | 2-3 months | 1 month |
| Rate Access | All banks | Current bank only |
Compare real-time rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and others on Homejourney's bank rates page.Best Bank Refinancing Rates Comparison 2026: Homejourney
Financial Analysis: Calculate Your Break-Even
To decide refinancing vs repricing: which is better for you, compute break-even: (Fee difference) / (Monthly savings) = months to recover costs.
Example: $400k HDB loan at 3% to 1.6% bank rate saves ~$500/month.[6] Repricing fees $800 = 1.6 months break-even. Refinancing $2,500 (post-subsidy) = 5 months. After that, pure savings—e.g., $3,600/year on $400k loan.[1]
Use Homejourney's refinancing calculator at https://www.homejourney.sg/bank-rates#calculator for your numbers. Track SORA trends, now at 1.34% 3M low.[1]
The chart below shows recent interest rate trends in Singapore:
As seen, rates dropped from 3-4% in 2023-24, driving refinancing waves like 35-40% YoY in 2019-20.[1] Expect moderation mid-2026 as locks expire.[1]
When to Choose Each: Practical Scenarios
- Choose repricing if: Lock-in ending soon, happy with current bank (e.g., DBS offset account), need speed. Ms Denise Chan saved $500/month repricing DBS to 1.6% fixed.[6]
- Choose refinancing if: Seeking fixed rates (1.48% 2Y), cash rebates, or better features like free conversion Year 1.[1] Ideal for HDB owners in mature estates like Bedok switching from 2.6%.
Refinancing maximizes savings long-term (20-30Y loans) but check LTV/TDSR eligibility via Homejourney's tools. Insider tip: Time for lock-in end to avoid penalties (~1-2% of loan).[4]
How to Refinance: Step-by-Step Guide
Follow these refinancing steps for a smooth refinance process:
- Check eligibility: Use Homejourney calculator for TDSR (60% debt cap).How to Calculate If Refinancing is Worth It: Homejourney Guide
- Compare rates: On Homejourney bank-rates—submit one app via Singpass to DBS, OCBC, etc., get multiple offers.
- Gather docs: NRIC, property title, income proof, CPF statements.
- Apply: Banks value property (1-2 weeks), legal discharge (1 month).Refinance application takes 6-8 weeks total.
- Close: New loan funds, old discharged. Track via Homejourney dashboard.
Full details in our Step-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney ">Step-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney . Avoid hidden costs like clawbacks—see Hidden Costs of Refinancing Your Mortgage: What Homejourney Users Need to Know ">Hidden Costs of Refinancing Your Mortgage: What Homejourney Users Need to Know .
Money-Saving Tips from Homejourney
- Negotiate: Let banks compete via Homejourney multi-bank submission.
- Grab rebates: Up to 0.3% cashback on packages.
- Combine goals: Refinance when buying via Homejourney property search.
- Monitor SORA: Live on our platform for timing.
Disclaimer: Rates fluctuate; consult Homejourney mortgage brokers for personalized advice. Not financial advice—verify with MAS/HDB.
FAQ: Refinancing vs Repricing in Singapore
Q: Can I reprice an HDB loan?
A: No, HDB has fixed 2.6% rate—only refinance to banks.[5]
Q: How to refinance without fees?
A: Banks subsidize HDB >$200k. Use Homejourney for waivers.
Q: Best time for switch mortgage bank?
A: Post-lock-in, when SORA <2% like now.[1]
Q: Refinance application docs?
A: Singpass auto-fills most via Homejourney.
Q: Is refinancing worth it in 2026?
A: Yes if savings >fees; calculate on our site.[1]
Ready to save? Start your refinancing steps on Homejourney bank-rates—compare, apply, save securely. Link back to our pillar for full mortgage mastery.
