Refinancing vs Repricing: Which is Better for You? Homejourney

Repricing suits quick switches within your current bank with lower fees and faster processing, while refinancing offers better rates and features from other banks but involves higher costs and longer timelines. The best choice depends on your potential savings, lock-in status, and tolerance for hassle. Homejourney helps you compare refinancing rates comparison across top banks like DBS, OCBC, and UOB to maximize trust and savings in Singapore's property market.[1][2][3]

Understanding Refinancing vs Repricing in Singapore

Repricing means switching to a new interest rate package with your existing bank, often after the lock-in period ends. It typically costs $300-$1,000 in admin fees and takes about one month.[2][3] Refinancing, however, involves terminating your current loan and taking a new one from another bank, incurring legal fees ($1,500-$2,000 for HDB, $1,800-$2,000 for private) and valuation fees ($150-$700).[2]

Note: HDB concessionary loans at 2.6% don't offer repricing; switching to banks is always refinancing.[1][4] With 3-month SORA at 1.34%—a 3-year low—many HDB owners are refinancing to bank loans at 1.55%-1.8%.[1] Homejourney's platform verifies these details for your safety, linking this cluster to our pillar on best bank refinance Singapore strategies.

Key Differences: Costs, Savings, and Timelines

Repricing is less hassle but limits you to your bank's packages, like SORA or fixed rates.[2] Refinancing unlocks promotions from DBS, OCBC, UOB, HSBC, and more, including cash rebates and free conversions.[1][3]

Factor	Repricing	Refinancing
Costs	$300-$1,000	$2,000-$3,500 (often subsidized for HDB >$200k)
Timeline	~1 month	2-3 months
Rate Options	Limited to current bank	All banks (e.g., 1.48% 2-yr fixed)
Best For	Speed, low effort	Max savings, features

Banks like DBS offer 1.6% packages, saving $500/month on typical loans.[5] Use Homejourney at https://www.homejourney.sg/bank-rates for top banks refinancing and DBS OCBC UOB refinance comparisons.

SORA Rates and Market Trends Driving Decisions

SORA (Singapore Overnight Rate Average) underpins most floating loans, now at 1.34% for 3-month compounds.[1] Fixed rates start at 1.48% for 2-years with free conversion options.[1] The chart below shows recent interest rate trends in Singapore:

Rates hit 3-year lows in 2025, spurring refinancing from HDB's 2.6%—e.g., $3,600 first-year savings on $400k loan.[1] Activity may moderate mid-2026 as early lock-ins expire.[1] Track live SORA on Homejourney to time your move.

When Repricing Wins: Quick and Low-Cost Savings

Choose repricing if outside lock-in (2-3 years typical), needing speed, and your bank like OCBC offers competitive packages.[3][5] Example: Ms. Denise Chan repriced DBS from 3% to 1.6%, saving $500/month instantly.[5]

Lock-in ended? Reprice for free/waived fees.
Happy with current bank features (e.g., offset accounts)? Stay put.
Savings exceed fees within 6-12 months? Go for it.

Insider tip: Banks waive fees for HDB loans over $200k outstanding—confirm via Homejourney's verified rates.[2]

When Refinancing is Better: Maximize Long-Term Gains

Refinance for refinance offers across banks if rates differ >0.5% or seeking rebates.[1][2] HDB switchers saved big as bank rates fell below 2.6%.[1][6] For private properties, compare via Homejourney's multi-bank tool—submit once, get offers from DBS, UOB, HSBC, etc.

Real example: $400k HDB loan from 2.6% HDB to 1.55% bank saves ~$4,200/year.[1] Check https://www.homejourney.sg/bank-rates#calculator for your numbers.

Break-Even Analysis: Calculate If It's Worth It

Formula: (Monthly savings × months to break even) ≥ Total fees. Example: $400/month savings, $2,500 fees = 6.25 months break-even.

Current monthly interest: Loan × rate /12.
New rate savings: Difference × loan /12.
Add fees (legal $1,500+, valuation $200); subtract rebates.
Divide fees by savings for months needed.

Refinance if break-even <24 months and rates stable.[2] Use our guide: How to Calculate If Refinancing is Worth It: Homejourney Guide . Hidden costs? See Hidden Costs in Refinancing Mortgage: Step-by-Step Guide Homejourney .

Step-by-Step Guide to Decide and Act

1. Check lock-in: Review loan docs or bank app—avoid penalties (1-2% of loan).

2. Compare rates: Homejourney at https://www.homejourney.sg/bank-rates shows best bank refinance Singapore from 11 banks.

3. Calculate savings: Use our calculator with Singpass for instant verification.

4. Apply: One form to all banks—track offers securely. Full steps: Step-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney .

5. Negotiate: Pit offers against each other for rebates up to 0.2% off.[1]

Disclaimer: This is general info; consult Homejourney brokers or advisors. Rates as of 2026; MAS regulates via TDSR.[1][2]

Homejourney: Your Trusted Partner for Safe Refinancing

Homejourney prioritizes your security with verified rates, Singpass integration, and multi-bank submissions—no branch hopping. Compare refinancing rates comparison safely, calculate eligibility, and apply confidently. Pair with property search at https://www.homejourney.sg/search.

Explore Best Bank Refinancing Rates Comparison 2026: Homejourney and Best Banks for Mortgage Refinancing Singapore 2026 | Homejourney for more.

FAQ: Refinancing vs Repricing

Q: Can I reprice an HDB concessionary loan?
A: No, HDB has one rate (2.6%). Switching to banks is refinancing.[1][4]

Q: What are current top refinancing rates?
A: 1.48%-1.8% fixed/SORA from DBS, OCBC, UOB. Compare on Homejourney.[1][7]

Q: Are refinancing fees waived?
A: Often fully for HDB >$200k; private varies. Check offers.[2]

Q: When to act in 2026?
A: Post-lock-in, if savings > fees. Rates may stabilize mid-year.[1][5]

Q: How does Homejourney make it safe?
A: Verified data, one-click multi-bank apps, real-time SORA—building trust transparently.

Ready for Refinancing vs Repricing: Which is Better for You? Start at https://www.homejourney.sg/bank-rates. Link back to our pillar on Singapore home loans for full coverage.