Refinancing vs Repricing: Which is Better? Homejourney Guide
Refinancing is often better than repricing if you can secure a significantly lower rate from another bank, as it provides access to competitive packages with subsidies covering costs, potentially saving thousands annually on your Singapore home loan. Repricing suits those staying with their current bank for simplicity, but it typically offers less attractive rates and incurs fees of S$800-S$1,000.
This cluster article dives into Refinancing vs Repricing: Which is Better for You, building on our pillar guide to Singapore home loans. At Homejourney, we prioritize your safety and trust by verifying rates from DBS, OCBC, UOB, and more, helping you make confident decisions in a transparent environment.
What is Refinancing vs Repricing in Singapore?
Refinancing means switching your home loan to a new bank or lender, like moving from an HDB loan to a bank package or between banks such as DBS to OCBC. This unlocks better rates, cash rebates, and features like free conversions after one year.[1][3]
Repricing is changing to a different interest rate package within the same bank after your lock-in period ends, without legal fees but usually at less competitive rates than new customer offers.[1][3][4]
For HDB flat owners, refinancing from the 2.6% HDB concessionary rate to bank loans at 1.48%-1.8% has surged in 2025, with OCBC seeing over 60% growth in such switches.[1] Note: Once you refinance out of an HDB loan, you cannot return to it.[3]
Key Difference: Refinancing offers more options across banks; repricing limits you to one lender.[5]
When Refinancing Beats Repricing: Real Singapore Examples
Consider a S$400,000 HDB loan at 3% interest. Refinancing to a 1.6% two-year fixed rate with POSB saves S$3,600 in the first year alone—enough for a family trip to Tokyo.[1]
Ms Denise Chan repriced her DBS loan from 3% to 1.6%, saving S$500 monthly without switching banks.[4] But refinancing to OCBC or UOB often yields even lower rates like 1.48% with cash rebates.[1]
With 3-month SORA at a 3-year low of 1.34%, floating-rate packages are popular for HDB refinancers.[1] Fixed rates from 1.55%-1.8% provide budgeting certainty, preferred by 90% of OCBC HDB refinancers.[1]
The chart below shows recent interest rate trends in Singapore:
As seen in the chart, rates have dropped significantly since mid-2025, making now ideal for action before moderation in mid-2026.[1]
Costs and Break-Even Analysis: Easy Refinancing Math
Refinancing costs S$2,000-S$3,000 in legal and valuation fees, but banks like DBS, HSBC, and Standard Chartered subsidize these for loans over S$300K (HDB) or S$400K (private).[2][3] Net cost: often minimal.
Repricing fees: S$800-S$1,000, no subsidies typically.[3]
Break-Even Calculation: Divide total costs by monthly savings. Example: S$2,500 cost, S$400 monthly savings = 6.25 months to break even. Use Homejourney's refinancing calculator at https://www.homejourney.sg/bank-rates#calculator for your numbers.
- If savings exceed S$300/month, refinance.
- For smaller gaps, reprice if loyal to your bank.
Hidden costs: Clawback penalties if switching early; factor via How Homejourney Makes Refinancing Your Mortgage Easier in Singapore .
Simple Refinance Process with Homejourney
Experience easy refinancing and simple refinance process on Homejourney:
- Compare refinance rates: View DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank in one place at https://www.homejourney.sg/bank-rates.
- Calculate savings instantly with our tool.
- One-click refinance: Submit one application to all banks via Singpass—get multiple offers without branch visits. See Benefits of Multi-Bank Application in One Click | Homejourney .
- Track real-time SORA rates.
- Connect with Homejourney Mortgage Brokers for guidance.
Timeline: 2-4 weeks. Documents: NRIC, property title, income proof. Apply via Singpass for instant verification: Step by Step Singpass Loan Application Guide | Homejourney .
Timing and Strategies for Maximum Savings
Act post-lock-in (2-3 years) when rates are low, like now at 3-year lows.[1][4] Expected moderation mid-2026 due to prior waves.[1]
Negotiate: Leverage offers from rival banks. Cash rebates up to S$2,000+ legal subsidies common.[1]
Insider Tip: HDB owners in mature estates like Toa Payoh—refinance before upgrading via Projects Directory . Pair with property search at https://www.homejourney.sg/search.
Disclaimer: This is general advice; consult professionals. Rates as of early 2026; verify on Homejourney.
FAQ: Refinancing vs Repricing in Singapore
Is refinancing worth it for HDB loans?
Yes, if bank rates <2.6% with subsidies—savings outweigh one-time costs.[1][3]
How much does repricing cost?
S$800-S$1,000 admin fee; no legal costs.[3][4]
Can I refinance private property?
Yes, only via banks; compare on Homejourney for best packages.[3]
What's refinance with Homejourney?
One-click multi-bank apps, Singpass integration, real-time rates—safe and simple.How to Use Homejourney Bank Rate Comparison: Step-by-Step Guide
When to reprice vs refinance?
Reprice for convenience; refinance for 0.5%+ rate drops.[5]
Ready for Refinancing vs Repricing: Which is Better for You? Start with compare refinance rates on Homejourney at https://www.homejourney.sg/bank-rates. For full home loan education, read our pillar guide. Your trusted partner for safe, transparent property decisions.
