Refinancing vs Repricing: Which is Better for You? Homejourney
Repricing is often better if you're happy with your current bank and want to avoid high legal fees, while refinancing suits those seeking the lowest rates from other banks like DBS, OCBC, or UOB. The choice depends on your loan amount, lock-in status, and potential savings after fees. Homejourney helps you compare options safely on our bank rates page, prioritizing your financial security with transparent tools.[1][2]
Understanding Refinancing vs Repricing in Singapore
Refinancing means closing your current home loan and taking a new one from another bank, potentially accessing better rates or cash out refinance Singapore options to extract home equity. Repricing switches to a new package within the same bank, simpler and faster.[2][3] For HDB owners, bank loans at 1.55%-1.8% now beat HDB's 2.6% rate, driving refinancing waves since 2025.[1]
Homejourney verifies all rates from partners like DBS, OCBC, UOB, HSBC, and Standard Chartered, ensuring you get accurate data without hassle. This cluster dives deeper into our pillar on Singapore home loans, offering tactical advice for 2026 decisions.
Key Differences: Costs, Timeline, and Savings
Repricing typically costs S$800 in admin fees (sometimes free) and takes 1 month. Refinancing involves S$3,000+ in legal/valuation fees, plus 2-3 months processing, but offers cash rebates like DBS's S$2,000 for HDB loans over S$300k.[2][3]
| Aspect | Repricing | Refinancing |
|---|---|---|
| Fees | S$800 (or free) | S$3,000+ (offset by rebates) |
| Timeline | 1 month | 2-3 months |
| Best For | Same bank loyalty | Equity cash out, better rates |
Calculate break-even on Homejourney's mortgage calculator: for a S$500k loan at 4.25% dropping to 3.5%, repricing saves faster if fees are low.[2]
Current SORA Rates and Market Trends
SORA (Singapore Overnight Rate Average), the key benchmark, hit 1.34% for 3-month compounds in 2025, the lowest in 3 years, fueling refinancing to floating packages.[1] Banks like OCBC and POSB offer 1.48%-1.5% fixed rates with free conversion after year 1.
The chart below shows recent interest rate trends in Singapore:
Rates may moderate mid-2026 as 2023-2024 lock-ins expire. Track live SORA on Homejourney to time your move perfectly.[1]
When Refinancing Wins: Cash Out and Equity Extraction
Choose refinancing for cash out mortgage or term loan Singapore needs, like renovations or investments. HDB owners switching to banks can't revert, so ensure rates stay low.[1] Example: S$400k POSB refinance saves S$3,600 year 1 vs HDB.[1]
On Homejourney, submit one application via Singpass to DBS, UOB, Maybank, CIMB, and more—banks compete with offers. See our Cash Out Refinancing Singapore: Homejourney Ultimate Guide ">cash out refinancing guide for details.
Financial Analysis: Break-Even and Hidden Costs
Break-even formula: (Refinancing fees - rebates) / Monthly savings = months to recover. For S$500k loan, 0.75% rate drop saves ~S$260/month; S$3k fees break even in 11 months.[2]
- Check lock-in: 1.5% penalty if early.
- Factor clawback: 1-1.5% of loan if switching packages.
- Valuation: Free if property value holds (URA guidelines).
Homejourney's tools factor these in. Read how to calculate if refinancing is worth it.[1][2]
Step-by-Step Guide to Decide and Act
Step 1: Review your loan: Exiting lock-in? Use Homejourney's bank-rates to compare DBS (1.48% fixed), OCBC, UOB.
Step 2: Calculate savings with our eligibility calculator.
Step 3: Reprice if <0.5% spread; refinance for >1% or cash needs.
Step 4: Apply via Singpass—one form, multiple offers. Processing: 1 week notices, 2 months full switch.
Disclaimer: Rates fluctuate; consult Homejourney brokers for personalized advice per MAS rules.
Money-Saving Tips for 2026
- Negotiate: Leverage offers from HSBC, Standard Chartered via Homejourney.
- Time it: Refinance pre-lock-in end; monitor SORA drops.
- Combine goals: Extract home equity for aircon upgrades—link to Aircon Services ">aircon services.
- Check promotions: Free repricing post-year 1 at many banks.[1][3]
Compare 2026 best rates in our Best Bank Refinancing Rates Comparison 2026: Homejourney Guide ">guide.
FAQ: Refinancing vs Repricing
What is the main difference between refinancing and repricing?
Repricing changes packages in the same bank (faster, cheaper); refinancing switches banks (better rates, cash out).[2][4]
Is refinancing worth it for HDB flats in 2026?
Yes if bank rates <2.6% and you need equity; calculate break-even first. Steady activity expected.[1]
Can I do cash out refinance in Singapore?
Yes, via refinancing to a higher term loan Singapore amount, subject to TDSR and LTV limits. Use Homejourney calculator.
How much are repricing fees?
Typically S$800, often waived; refinancing S$3k+ offset by S$2k rebates.[3]
Best banks for refinancing via Homejourney?
DBS, OCBC, UOB, HSBC—compare all on our secure platform.
Ready to save? Visit Homejourney's bank rates page for comparisons, calculators, and multi-bank applications. Link back to our full home loans pillar for more. Your trusted partner for safe property decisions.
