Refinancing vs Repricing: Which is Better for You? Homejourney
Repricing is often better if you're happy with your current bank and want quick, low-cost savings, while refinancing suits those seeking the lowest rates or better features from another bank like DBS, OCBC, or UOB. Homejourney prioritizes your financial safety by helping you compare options transparently. This cluster article dives into the key differences, costs, and steps for Singapore homeowners, linking back to our pillar guide on Mortgage Refinancing Singapore 2026: Homejourney's Definitive Guide ">Mortgage Refinancing Singapore 2026 for full coverage.
What is Refinancing vs Repricing in Singapore?
Refinancing means switching your home loan to a new bank or lender, such as moving from HDB to DBS or OCBC for lower rates. Repricing is staying with your current bank but negotiating a better interest package, like a lower SORA-linked rate.[1][2]
Both options help cut costs amid falling rates—3-month SORA hit 1.34%, a 3-year low, driving HDB owners to bank loans cheaper than HDB's 2.6%.[1] Homejourney makes it safe and simple: compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more at https://www.homejourney.sg/bank-rates.
Key Differences: Costs, Time, and Savings
Repricing is faster (about 1 month) and cheaper (S$300-S$1,000 admin fee, often free after lock-in).[2][4] Refinancing takes 2-3 months and costs S$2,000-S$3,000+ in legal and valuation fees for HDB (S$1,500 legal) or private properties, though banks subsidize for loans over S$200k.[3]
| Factor | Refinancing | Repricing |
|---|---|---|
| Fees | S$2,000-S$3,000+ (often offset by rebates) | S$300-S$1,000 (sometimes free) |
| Time | 2-3 months | 1 month |
| Flexibility | Choose any bank, more features | Limited to current bank |
| Savings Potential | Higher (e.g., DBS S$2,000 rebate) | Quick but smaller |
Cash rebates from banks like DBS (S$2,000 for HDB loans over S$300k) often cover refinancing costs.[2] Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator to see net savings.
When to Refinance Your Home Loan
Refinance when rates drop significantly (like now, below HDB's 2.6%) or your lock-in ends, especially from HDB loans—note you can't switch back.[1] Ideal for HDB upgraders or investors wanting fixed rates at 1.48%-1.5% p.a.[1]
Real example: A Bedok HDB owner refinanced S$400k from 3% to 1.6% SORA-linked, saving S$500/month after fees.[5] Check Hidden Refinancing Costs Singapore: Is It Worth It? Homejourney ">Hidden Refinancing Costs on Homejourney.
The chart below shows recent interest rate trends in Singapore:
Rates have fallen, but moderation expected mid-2026 as many 2023-2024 loans are already refinanced.[1]
When Repricing Makes Sense
Choose repricing for speed and simplicity if your bank offers competitive packages, like DBS's free conversion after year 1.[1][2] Ms Denise Chan repriced to 1.6% fixed, halving her rate.[5]
Best for short-term needs or if refinancing fees exceed 2 years' savings. Insider tip: Negotiate with your relationship manager before lock-in ends—many waive fees.[3]
How to Calculate If It's Worth It: Break-Even Analysis
Subtract fees from total interest savings over the new lock-in (usually 2-3 years). Example: S$400k loan at 3% to 1.6% saves S$5,600/year. After S$2,500 fees, break-even in ~5 months.
- Current monthly payment vs new rate.
- Add fees/rebates.
- Divide by monthly savings for break-even months.
- If under 24 months, proceed.
Try Homejourney's tool: submit one application via Singpass to DBS, OCBC, UOB, etc., and get competing offers. Learn more in How to Calculate If Refinancing is Worth It: Homejourney Guide ">How to Calculate If Refinancing is Worth It.
Step-by-Step Guide to Refinancing or Repricing
For Repricing:
- Check lock-in expiry (notify 1-3 months early).
- Compare packages with your bank.
- Submit request—processed in 1 month.
For Refinancing:
- Compare rates on Homejourney bank-rates.
- Serve notice to current bank (2-3 months).
- Apply via Singpass on Homejourney for multi-bank offers.
- Valuation, legal docs (HDB: S$1,500 fees).
- Track SORA live on our platform.
Timeline: 7-14 days eligibility check, full process 2 months. Disclaimer: Rates fluctuate; consult Homejourney brokers for personalized advice. Past performance isn't indicative of future results.
Money-Saving Tips for Singapore Homeowners
- Time for lock-in end to avoid penalties.[1]
- Haggle rebates—DBS offers S$2,300 for private properties over S$500k.[2]
- Combine with offset accounts if your bank excels (e.g., UOB).[3]
- Refinance HDB if under 2.6% bank rates, but verify can't revert.[1]
- Use Homejourney to let banks compete: one app, multiple offers.
Positioned as your trusted partner, Homejourney verifies data for confident decisions. See Best Bank Refinancing Rates Comparison 2026: Homejourney Guide ">Best Bank Rates 2026.
FAQ: Refinancing vs Repricing Singapore
1. Repricing vs refinancing: which saves more?
Refinancing often saves more long-term (e.g., better rates/features), but calculate break-even. Repricing wins for quick, low-fee changes.[2][3]
2. Can I refinance HDB loan to bank?
Yes, if rates beat 2.6%, but irreversible. Popular now with SORA at 1.34%.[1]
3. What are current refinancing costs 2026?
HDB: S$1,500 legal + valuation; often fully subsidized over S$200k. Private: S$1,800+.[3]
4. When to refinance home loan in 2026?
Now, before mid-year moderation. Track SORA on Homejourney.[1]
5. How does Homejourney help?
Compare DBS/OCBC/UOB rates, apply once via Singpass, calculate savings instantly for safe, trusted refinancing.
Ready to save? Start at https://www.homejourney.sg/bank-rates, then search properties at https://www.homejourney.sg/search. For full insights, read our pillar: Mortgage Refinancing Singapore 2026: Homejourney's Definitive Guide ">Mortgage Refinancing Singapore 2026.
