Refinancing vs Repricing: Which is Better for You? Homejourney
Repricing is better if you want quick savings with minimal hassle and costs under S$1,000, while refinancing suits those seeking the lowest market rates from banks like DBS, OCBC, or UOB, despite higher upfront fees of S$2,000-S$3,000. At Homejourney, we prioritize your financial safety by helping you compare options transparently. This cluster article dives into Refinancing vs Repricing: Which is Better for You, building on our pillar guide to Singapore home loans. Discover if refinancing worth it for your HDB or private property.[1][2]
What is Repricing vs Refinancing in Singapore?
Repricing means switching to a better interest rate package within your current bank after the lock-in period ends, typically taking 1 month with fees around S$800. Refinancing involves moving your loan to a new bank (or from HDB to bank), requiring a new application, valuation, and legal fees, taking 1-3 months.[2][4]
HDB loans at 2.6% don't offer repricing—only refinancing to banks like OCBC or DBS, where rates have dropped to 1.48%-1.8% p.a. as of late 2025. Homejourney makes it safe: compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more at https://www.homejourney.sg/bank-rates.[1][5]
Key Differences: Costs, Timeline, and Savings
Repricing pros: Faster activation of savings, no valuation or lawyers needed, lower costs. Cons: Limited to your bank's offers, possible new lock-in.[2] Refinancing pros: Access market-low rates (e.g., 1.34% 3M SORA-linked), cash rebates, free conversions. Cons: S$2,000+ fees, longer process.[1][3]
| Aspect | Repricing | Refinancing |
|---|---|---|
| Time | 1 month | 1-3 months |
| Costs | S$800 fee | S$2,000-S$3,000 (legal, valuation) |
| Rate Access | Current bank only | Any bank/HDB |
Banks often subsidize refinancing costs. For HDB owners, switching to POSB saves ~S$3,600/year on S$400,000 loan.[1]
Is Refinancing Worth It? Break-Even Analysis
Calculate refinance break-even: Divide total refinancing costs by monthly savings. Example: S$2,500 fees, S$500/month saved = 5 months break-even. If you stay 5+ years, it's worth it.[4]
Try Homejourney's refinance calculator at https://www.homejourney.sg/bank-rates#calculator. Real example: HDB flat in Punggol on 2.6% HDB loan refinances to DBS 1.6% fixed—saves S$500/month on S$500,000 loan after 6-month break-even.[1][5]
SORA rates (key for floating loans) hit 3-year lows at 1.34% (3M). The chart below shows recent interest rate trends in Singapore:
Rates fell sharply in 2025, driving 60% YoY HDB-to-bank refinances at OCBC. Expect moderation mid-2026 as 2023 lock-ins expire.[1]
When to Choose Repricing Over Refinancing
- Small rate gap (<0.5%): Reprice for quick wins, e.g., DBS from 3% to 1.6%, saving S$500/month.[5]
- Lock-in ending soon: Avoid penalties; reprice free after Year 1 on many packages.[1]
- Short-term stay: Break-even too long for refinancing.
Repricing suits stable needs; refinance for best rates from Maybank, CIMB, or RHB.[2][4]
When Refinancing Wins: Step-by-Step Guide
Should I refinance? Yes if savings exceed costs over your tenure. Steps:
- Check eligibility: Use Homejourney's calculator; TDSR <60%.Is Refinancing Worth It? Homejourney's Complete Calculator Guide
- Compare rates: DBS, OCBC, UOB via https://www.homejourney.sg/bank-rates.Best Bank Refinancing Rates Comparison 2026 | Homejourney
- Apply multi-bank: One form on Homejourney gets offers from all; Singpass for instant verification.
- Prepare docs: Income proof, property title, CPF statements.
- Close: 4-8 weeks; track SORA live on Homejourney.
Hidden costs: Clawback if early exit, penalties in lock-in. See Homejourney bank-rates for subsidies.[3]Hidden Costs of Best Banks for Mortgage Refinancing You Need to Know | Homejourn...
Timing and Money-Saving Tips
Act post-lock-in (2-3 years typical). With SORA low, refinance HDB now—but can't revert. Negotiate: Leverage offers from HSBC vs UOB for rebates up to 0.35% + S$2,000 cash.[1]
Insider tip: Submit via Homejourney for banks to compete—multiple offers in days. Track real-time SORA to time perfectly. For properties, search budgets at https://www.homejourney.sg/search.[5]
FAQ: Refinancing vs Repricing in Singapore
Q: Is refinancing worth it for HDB flats?
A: Yes if bank rates <2.6%; e.g., S$3,600/year savings on S$400k loan. Use Homejourney calculator.[1]
Q: What are typical refinancing costs?
A: S$2,000-S$3,000 (legal S$1,500, valuation S$500+); often subsidized.[2][3]
Q: Can I reprice HDB loan?
A: No, only refinance to banks. HDB rate fixed at 2.6%.[4]
Q: How to calculate refinance break-even?
A: Costs ÷ monthly savings = months to recover. E.g., S$2,500 ÷ S$400 = 6.25 months.How to Calculate If Refinancing is Worth It: Homejourney Guide
Q: Best banks for refinancing 2026?
A: Compare DBS, OCBC, UOB on Homejourney.Best Banks for Mortgage Refinancing Singapore 2026 | Homejourney
Disclaimer: This is general info; consult professionals. Homejourney verifies data for trust.
Ready to save? Compare rates and apply via https://www.homejourney.sg/bank-rates. Link back to our pillar: Singapore Home Loans Guide for full coverage.
