Refinancing vs Repricing: Choose Based on Savings and Effort
Repricing suits quick switches within your current bank with minimal fees (around $800), while refinancing to a new bank maximizes savings but involves higher costs ($2,000+) and a longer process. For Singapore homeowners, especially HDB owners, refinancing to bank loans like those from DBS, OCBC or UOB has surged in 2025 as rates dropped to 3-year lows around 1.34%-1.8%, cheaper than HDB's 2.6%.[1][2][3] Homejourney helps you compare these options safely via our verified bank rates tool at https://www.homejourney.sg/bank-rates, ensuring transparent decisions in a trusted environment.
Understanding Refinancing vs Repricing in Singapore
Both options arise after your loan's lock-in period (typically 2-3 years) when rates fall, like the current 3M SORA at 1.34%.[1] Repricing means negotiating a better package with your existing bank, often free or low-cost, taking effect in about a month.[3] It's ideal if you're happy with your bank and want minimal hassle—no new credit checks or property valuation.
Refinancing involves taking a new loan from another bank, releasing your title deed and incurring legal fees ($1,500-$2,000 for HDB, higher for private) plus valuation ($150-$700).[4] Banks like HSBC or Standard Chartered often subsidize these for loans over $200k on HDB flats.[4] This unlocks better rates, cash rebates, and features like free conversions after year 1.[1]
When Repricing Wins
- You're within the same bank like DBS and they offer competitive SORA-pegged rates at 1.48%-1.5%.[1]
- Lock-in ends soon, and you prioritize speed over maximum savings.
- Low outstanding loan balance where fees outweigh interest gains.
Homejourney's real-time SORA tracker at https://www.homejourney.sg/bank-rates#calculator helps spot if your bank's repricing beats market averages.
When Refinancing is Better
- Market rates are significantly lower, e.g., switching HDB 2.6% to bank 1.55%, saving thousands yearly.[1]
- You want features like interest offset accounts or promotions from OCBC/UOB not available at your bank.[4]
- For investment property refinance or rental property refinance, refinancing optimizes second property loan or property portfolio refinancing under TDSR rules.[2]
Refinancing activity spiked 35-40% in past low-rate waves; expect moderation mid-2026 as 2023-2024 loans refinance.[1]
Financial Analysis: Calculate Your Break-Even Point
To decide Refinancing vs Repricing: Which is Better for You, compute break-even: (Total fees) / (Monthly savings) = months to recover costs. Example: $2,500 refinancing fees, $200 monthly savings = 12.5 months break-even. If your loan tenure exceeds this, refinance wins.[2]
Real Singapore example: HDB flat owner with $500k loan at 3% reprices to 1.8% (saving $7,500/year interest) or refinances to 1.55% DBS package (saving $9,250/year minus $2k fees = net $7,250 first year).[1][3] Use Homejourney's calculator for personalized math: input your balance, current rate, and compare DBS, OCBC, UOB, HSBC packages.
| Factor | Repricing | Refinancing |
|---|---|---|
| Fees | $300-$1,000[3] | $1,500-$3,000 (often subsidized)[4] |
| Timeline | 1 month[3] | 3 months[3] |
| Savings Potential | Limited to current bank | Max from all banks + rebates[1] |
Hidden costs: Clawback if you refinance within lock-in, fire insurance (same cost).[4] For investor mortgage, factor rental income into TDSR.[2] Disclaimer: This is general info; consult professionals for advice.
Step-by-Step Guide to Refinancing or Repricing
- Check eligibility: Use Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator with Singpass for instant TDSR check.
- Compare rates: On Homejourney, view live rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank—submit one app for multiple offers.
- Gather docs: NRIC, payslips, property title (auto-filled via Singpass).
- Apply: Via Homejourney for multi-bank submission—no branch visits.
- Legal/valuation: New bank handles; subsidies common for HDB >$200k.
- Close: 3 months for refinance; enjoy savings immediately.
Timing tip: Act post-lock-in when SORA dips; track on Homejourney. For investors, link to Refinancing for Investment Property Owners: Homejourney Guide ">Refinancing for Investment Property Owners: Homejourney Guide .
Money-Saving Strategies with Homejourney
- Negotiate: Let banks compete via Homejourney's multi-bank app for better investor mortgage rates or cashback.
- Rebates: Maximize via promotions; see Homejourney: Maximize Bank Refinance Cashback Rebates in SG ">Homejourney: Maximize Bank Refinance Cashback Rebates in SG .
- SORA vs Fixed: Compare at .
- Portfolio: Optimize property portfolio refinancing across properties.
Homejourney prioritizes your safety with verified data and WhatsApp support, building trust through transparency.
FAQ: Refinancing vs Repricing in Singapore
1. Can I refinance from HDB to bank loans?
Yes, many did in 2025 as bank rates fell below HDB's 2.6%; no reverse switch possible.[1]
2. What's the best 2025 refinancing rate?
Around 1.48%-1.55% fixed/SORA from top banks; compare on Homejourney.[1] See 2025最佳银行再融资利率比较：Homejourney新加坡指南 ">2025最佳银行再融资利率比较：Homejourney新加坡指南 .
3. How to know if refinancing is worth it?
Calculate break-even; use our tool. Details at 如何计算再融资是否值得？Homejourney新加坡房贷指南 ">如何计算再融资是否值得？Homejourney新加坡房贷指南 .[2]
4. Repricing vs refinancing fees for HDB?
Repricing ~$800; refinancing subsidized often fully over $200k.[3][4]
5. Best for rental property refinance?
Refinancing for better rental property refinance terms under TDSR.[2]
Ready to save? Start with Homejourney's safe, verified comparison at https://www.homejourney.sg/bank-rates
