Refinancing vs Repricing: Which Saves You More Money in 2026?

If your home loan's lock-in period is ending, you're likely facing a critical decision: should you refinance to a different bank or reprice with your current lender? With interest rates at 3-year lows and banks competing aggressively for your business, the potential savings are significant—but so are the costs and complexities. The right choice depends on your specific situation, not just the advertised rates.

At Homejourney, we believe in empowering you with transparent, trustworthy information to make confident financial decisions. This guide breaks down refinancing versus repricing with real numbers, hidden costs, and a practical framework to determine which option truly saves you the most money.

Understanding the Fundamental Difference

Refinancing means switching your entire home loan to a different bank. You're essentially paying off your existing loan and taking out a new one elsewhere. Repricing means switching to a different interest rate package with your current bank—you're renegotiating terms without changing lenders.

This distinction matters because it affects costs, timelines, and flexibility. For HDB loan holders, there's an important caveat: repricing doesn't apply if you're on an HDB loan at 2.6%, since HDB offers only one standard rate pegged to CPF returns. HDB borrowers can only refinance to a bank to access lower rates.

The chart below shows recent interest rate trends in Singapore to help you understand the current market environment:

As you can see, floating-rate packages linked to SORA (Singapore Overnight Rate Average) have dropped to historic lows around 1.34%, while fixed-rate packages range from 1.48% to 1.8%. This creates compelling opportunities for borrowers locked into older rates of 3-4%.

The Real Cost Comparison: What You'll Actually Pay

This is where many borrowers make mistakes. The advertised interest rate isn't the full picture—you must account for all associated costs.

Refinancing Costs

When you refinance, expect to pay:

Legal and valuation fees: S$3,000 and above. These are mandatory costs for switching banks.
Valuation fee: Typically S$400-800 depending on property value and location
Legal fees: Usually S$800-1,500 for conveyancing work
Clawback penalty: If you're exiting your current loan during a lock-in period, some banks charge early redemption fees (though this is less common in Singapore's competitive market)
Administrative fees: Some banks charge document processing fees of S$100-300

However, most banks now offer cash rebates and legal fee subsidies to attract refinancing customers. DBS, for example, offers S$2,000 cash rewards plus S$200 shopping vouchers for HDB refinancing of loans above S$300,000. These rebates often offset the legal and valuation fees entirely, making the net cost close to zero.

Repricing Costs

Repricing is significantly cheaper:

Conversion or administrative fee: Around S$800, though many banks now offer free repricing options
No legal or valuation fees required
No early redemption penalties if you're repricing within your current bank

The simplicity of repricing means faster processing—typically 1 month versus 2 months for refinancing. You also avoid the hassle of serving notice to your current bank, arranging property valuations, and engaging lawyers.

Real Savings Example: The Numbers That Matter

Let's use a concrete example to illustrate the decision. Assume you have a S$400,000 HDB loan at 2.6% (HDB rate) with 15 years remaining.

Scenario 1: Refinance to a bank at 1.6% fixed (2-year lock-in)

Monthly payment reduction: approximately S$300
Annual savings: S$3,600
Less refinancing costs (net after rebates): approximately S$0-500
First-year net savings: S$3,100-3,600

Scenario 2: Stay with HDB at 2.6%

Monthly payment: unchanged
Annual savings: S$0
Total cost over 15 years: significantly higher

In this example, refinancing pays for itself within the first month and delivers thousands in savings over the loan term. This is why refinancing activity surged in 2025, with HDB owners switching to bank loans at unprecedented rates.

When Refinancing Makes Sense

Refinancing is your better choice if:

You're on an HDB loan: Since repricing isn't available, refinancing is your only option to access lower rates
Your current bank's repricing offer is significantly worse: Compare the final rate after repricing versus refinancing offers from competitors
You have a large loan amount: The S$3,000+ in costs are offset faster with bigger savings on larger principal amounts
You plan to stay in the property long-term: Refinancing costs are recouped over time through lower monthly payments
Interest rates are expected to fall further: Modern refinancing packages often include free conversion options, letting you switch to floating rates if rates drop
You want to consolidate multiple loans: Refinancing allows you to combine separate debts into one manageable payment

When Repricing Makes Sense

Repricing is your better choice if:

Your current bank is offering competitive rates: If your bank's repricing rate matches or beats external offers, the lower costs make repricing the winner
You value convenience and speed: Repricing processes in 1 month versus 2 months for refinancing
You want to minimize hassle: No lawyers, valuations, or complex paperwork required
You have a smaller loan amount: The S$3,000+ refinancing costs eat into savings on smaller principals
You're uncertain about long-term rate direction: Your current bank's repricing flexibility (free conversion options) provides adaptability without major costs
You prefer staying with a trusted lender: If you have existing relationships and products with your current bank, repricing maintains that continuity

The Hidden Costs You Must Calculate

Beyond the obvious fees, several hidden costs affect your true savings. Read our detailed guide on hidden refinancing costs in Singapore for a comprehensive breakdown.

Key hidden costs include:

Clawback penalties: Some loans charge fees if you exit during lock-in periods (though increasingly rare)
Stamp duty: Generally not applicable for refinancing in Singapore, but verify with your lawyer
Insurance policy transfers: Mortgage insurance may need to be restructured when refinancing
Opportunity cost: The time spent on refinancing could be spent elsewhere; factor this into your decision

Step-by-Step: How to Make Your Decision

Step 1: Know Your Current Loan Details

Gather your loan documents and identify: current interest rate, remaining loan term, loan amount, lock-in period end date, and any early redemption fees.

Step 2: Compare Available Options

Visit Homejourney's bank rates comparison page to see current refinancing and repricing offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and other major lenders. This transparent comparison ensures you're not missing better deals.

Step 3: Calculate Your Break-Even Point

Use this formula:

Break-even months = Total refinancing costs ÷ Monthly savings

If your break-even point is 6 months and you plan to stay 10+ years, refinancing makes financial sense. Our mortgage calculator automates this calculation—simply input your loan details to see exact savings projections.

Step 4: Account for Rate Volatility

Consider whether you prefer fixed or floating rates. Fixed rates offer certainty but may be higher. Floating rates (linked to SORA) are currently lower but expose you to future rate increases. Many modern packages offer free conversion options, giving you flexibility to switch if circumstances change.

Step 5: Factor in Lifestyle Changes

Are you planning to sell, upgrade, or downsize within the next 5 years? If so, refinancing costs may not be recovered. Repricing is safer if you're uncertain about your long-term housing plans.

Timing Your Refinancing: Lock-In Periods Matter

The optimal time to refinance or reprice is when your lock-in period ends. Most home loans have 2-3 year lock-in periods. Exiting early triggers penalties that can offset your savings.

Current market conditions are favorable: floating-rate packages are at 3-year lows around 1.34-1.55%, and fixed-rate packages range from 1.48-1.8%. However, analysts predict that much of the rate decline has already occurred. Refinancing activity is expected to moderate from mid-2026 as borrowers who locked in at 3-4% in 2023-2024 complete their switches.

If your lock-in period ends in early 2026, act soon to capture current promotional offers and competitive rates. Banks are aggressively competing with cash rebates and fee subsidies—these incentives may diminish as refinancing demand normalizes.

Negotiating Better Rates and Offers

Banks have flexibility in their offers. Here's how to negotiate:

Get multiple quotes: Submit applications to 3-5 banks simultaneously using Homejourney's multi-bank application system. Banks will compete for your business with better rates and rebates.
Leverage your credit profile: Excellent credit scores and stable income attract better offers. Mention your clean payment history when negotiating.
Bundle products: Some banks offer rate discounts if you maintain savings accounts, credit cards, or investment products with them.
Ask about fee waivers: Legal and valuation fees are often negotiable, especially for larger loan amounts.
Time your application: Banks often launch promotional campaigns at quarter-end or year-end. Timing your application strategically can unlock better deals.

How Homejourney Simplifies Your Decision

Making this decision shouldn't require visits to multiple bank branches or hours of comparison spreadsheets. Homejourney's platform is designed with your safety and convenience in mind:

Compare rates instantly: See current refinancing and repricing offers from all major banks in one place, updated in real-time
Calculate your savings: Our refinancing calculator shows exact monthly savings, break-even timelines, and total interest paid over your loan term
Apply to multiple banks simultaneously: Submit one application and receive competing offers from DBS, OCBC, UOB, HSBC, Standard Chartered, and more
Use Singpass for instant verification: Auto-fill your application in seconds using Singpass, speeding up approval timelines
Track live SORA rates: Monitor 3-month and 6-month SORA rates on our platform to time your decision perfectly
Connect with mortgage brokers: Our Homejourney Mortgage Brokers provide personalized guidance throughout the refinancing process, ensuring you understand every step

Visit Homejourney's bank rates page to start comparing and applying today. We verify all information to ensure you make confident decisions in a safe, trusted environment.

FAQ: Refinancing vs Repricing

Can I refinance if I'm still in my lock-in period?

Technically yes, but you'll face early redemption fees that typically offset refinancing savings. It's better to wait until your lock-in period ends unless rates drop dramatically (1%+ difference) and you plan to stay long-term.

If I refinance, can I switch back to an HDB loan later?

No. Once you refinance from an HDB loan to a bank loan, you cannot return to HDB financing. This is a one-way decision, so ensure bank rates remain competitive long-term before switching.