Refinancing vs Repricing: Which Saves More Money in 2026?

When your home loan's lock-in period ends, you face a critical decision: should you refinance to a different bank or reprice with your current bank? With Singapore mortgage rates at 3-year lows in 2026, this choice could save you thousands of dollars annually—or cost you more if you make the wrong decision.

The difference is straightforward but important: refinancing means switching to a new loan with another bank, while repricing means switching to a different interest rate package within your existing bank. Both can reduce your monthly payments, but they come with different costs, timelines, and long-term implications.

At Homejourney, we believe informed decisions lead to better financial outcomes. This guide breaks down both options with real numbers so you can determine which path saves you the most money.

Understanding the Key Difference

Before diving into costs and calculations, let's clarify what happens with each option:

Refinancing: You exit your current loan entirely and take out a new loan from another bank. This involves legal paperwork, property valuation, and a formal transfer of your mortgage. Once you refinance from an HDB loan to a bank loan, you cannot switch back to an HDB loan in the future—this is a permanent decision.

Repricing: You stay with your current bank but switch to a different interest rate package. This is simpler administratively and faster to process. Your bank handles the paperwork internally, and you maintain your relationship with the same lender.

The choice between them depends on three factors: the interest rate difference, the fees involved, and how long you plan to stay in your property.

The Cost Comparison: Refinancing vs Repricing

This is where most homeowners get confused. While refinancing might offer lower rates, the fees can be substantial. Let's break down what you'll actually pay:

Refinancing Costs

When you refinance, you typically pay:

Legal fees: S$3,000 and above (paid to your lawyer)
Valuation fee: S$1,500–S$3,000 depending on property value (paid to the bank's valuer)
Early redemption penalty: Only if you exit during your lock-in period (typically 0.25–0.5% of remaining loan balance)

However, banks competing for your business in 2026 are offering cash rebates and fee subsidies that can offset these costs. For example, DBS provides up to S$2,000 cash rewards plus S$200 shopping vouchers for HDB refinancing of S$300,000 or more. OCBC and UOB offer similar incentives. Many banks now subsidise legal fees entirely and partially cover valuation fees if your loan amount exceeds S$300,000 for HDB flats or S$400,000 for private properties.

This means your net cost for refinancing can be as low as S$0 to S$500 after deducting bank rebates and subsidies—making it surprisingly affordable.

Repricing Costs

Repricing is simpler but comes with its own fee:

Repricing or conversion fee: S$800–S$1,000 (sometimes free if your bank offers a free repricing option)

Many banks now offer free repricing after your lock-in period ends, making this option virtually cost-free. However, some banks charge S$800–S$1,000 for the administrative work involved.

Real Savings Example: The Numbers Matter

Let's look at a concrete example to illustrate the difference. Consider an HDB flat owner with a S$400,000 loan originally locked in at 3% interest rate:

Current situation (before lock-in ends):

Monthly payment: approximately S$1,899
Annual interest cost: approximately S$12,000

Option 1: Reprice with current bank at 1.6%

New monthly payment: approximately S$1,519
Monthly savings: S$380
Annual savings: S$4,560
Less repricing fee: -S$800 (one-time)
Net first-year savings: S$3,760

Option 2: Refinance to another bank at 1.55%

New monthly payment: approximately S$1,510
Monthly savings: S$389
Annual savings: S$4,668
Less legal and valuation fees: -S$4,500
Plus bank cash rebate: +S$2,000
Net first-year savings: S$2,168

In this scenario, repricing saves more in year one (S$3,760 vs S$2,168) because the lower fees offset the slightly higher interest rate. However, in years two and beyond, refinancing pulls ahead because you're paying 0.05% less interest annually (S$200 more per year), and you've already paid the one-time fees.

This example shows why the decision isn't obvious—it depends on how long you keep the loan and what rates each bank offers.

Processing Time and Convenience

Speed matters when interest rates are falling. Here's how the timelines compare:

Repricing: Typically 1 month from application to completion. Your bank handles everything internally, and you avoid the bureaucratic steps of a full refinance.

Refinancing: Typically 2 months from application to completion. You'll need to serve notice to your current bank, arrange a property valuation, and have lawyers handle conveyancing paperwork.

If rates are dropping rapidly, the faster repricing timeline might let you lock in a rate before further declines occur. However, if you're confident rates will stabilize, the extra month of refinancing is worth it for the better long-term rate.

Hidden Considerations: Lock-In Periods and Flexibility

Your current loan agreement likely includes a lock-in period (typically 2–3 years) during which you cannot switch without paying an early redemption penalty. This penalty—usually 0.25–0.5% of your remaining loan balance—can add S$1,000–S$2,000+ to refinancing costs.

Banks now offer flexibility to address this. Many new loan packages include free conversion options that let you switch to a different rate package within the lock-in period without penalties. If your current bank offers this, repricing becomes even more attractive because you can switch without waiting for the lock-in to expire.

Additionally, some banks offer free repricing after the first year, meaning you could reprice again if rates drop further—something you cannot do after refinancing without incurring new legal and valuation fees.

The Permanent Decision: HDB Loan to Bank Loan

Here's a critical point that many homeowners overlook: if you refinance from an HDB loan to a bank loan, you cannot refinance back to an HDB loan in the future. This is a permanent, one-way decision.

Why does this matter? HDB loans currently sit at 2.6% interest rate, which is fixed and stable. While bank loans are cheaper now (1.55–1.8%), if interest rates rise significantly in the future, HDB's fixed rate might become attractive again—but you'll be locked out.

This is why some HDB owners remain cautious about refinancing, even when bank rates are lower. If you're uncertain about long-term rate direction, repricing with your current bank might feel safer because you maintain optionality.

How to Make Your Decision: A Framework

Choose repricing if:

Your current bank's repricing rate is within 0.1–0.15% of the best refinancing offers
You want to minimize upfront costs and processing time
You value flexibility and the option to switch again if rates drop further
You want to avoid the permanent commitment of leaving HDB (if applicable)
Your bank offers free or low-cost repricing

Choose refinancing if:

You can secure a rate at least 0.2% lower than your current bank's repricing offer
Your remaining loan balance exceeds S$300,000 (HDB) or S$400,000 (private), so banks will subsidise fees
You plan to stay in the property for at least 5+ more years (to recoup refinancing costs)
You want the lowest possible interest rate regardless of bank relationship
You're comfortable with the permanent decision to leave HDB (if applicable)

Using Homejourney to Compare Your Options

Making this decision requires accurate rate information and clear cost calculations. At Homejourney, we've built tools specifically for this:

Compare refinancing rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more on our Bank Rates page. You can see current rates, cash rebates, and fee subsidies from all major banks in one place—no need to visit multiple bank websites or branches.

Our refinancing calculator lets you input your loan amount, current rate, and desired loan tenure to instantly see potential monthly savings. The calculator factors in typical refinancing costs, so you see your actual net benefit, not just the interest rate difference.

Most importantly, you can submit one refinancing application to multiple banks simultaneously through Homejourney. Banks then compete for your business, and you receive multiple offers to compare. This takes the guesswork out of shopping around.

For repricing, we help you understand what your current bank is offering and whether it's competitive. Many homeowners simply accept their bank's repricing offer without realizing they could negotiate better terms or that refinancing might actually save more money.

The 2026 Interest Rate Environment

Understanding where rates are heading helps inform your decision. In early 2026, floating-rate packages linked to SORA (Singapore Overnight Rate Average) have dropped to 1.34%—the lowest in three years. Fixed-rate packages range from 1.48–1.8% depending on the lock-in period.

Analysts believe most of the rate decline has already occurred. While further drops are possible, they're expected to be modest given current macroeconomic conditions. This suggests that if you're considering refinancing or repricing, sooner is better than later—waiting for rates to drop further might not pay off.

Refinancing activity is expected to remain healthy through mid-2026 but moderate thereafter as borrowers who locked in at 3–4% in 2023–2024 have already refinanced. This means banks may be more aggressive with offers now than they will be later in the year.

Frequently Asked Questions

Can I refinance during my lock-in period?

Technically yes, but you'll pay an early redemption penalty (typically 0.25–0.5% of your remaining balance). This penalty often exceeds the savings you'd gain from a slightly lower rate, making it uneconomical. However, if your current bank offers a free conversion option during the lock-in period, you can reprice without penalty.

What if my bank won't let me reprice?

Most banks allow repricing after the lock-in period ends. However, some older loan agreements may have restrictions. Check your loan agreement or contact your bank directly. If repricing isn't available, refinancing is your only option.

How much can I negotiate on refinancing fees?

Legal fees are set by law firms and aren't typically negotiable. However, valuation fees and especially cash rebates are negotiable. When you apply through Homejourney, multiple banks compete for your business—this competition naturally drives better offers. Don't accept the first offer; use competing offers to negotiate with your preferred bank.

Is there a clawback penalty if I refinance?

Clawback penalties are rare in Singapore mortgages and typically only apply if you refinance within a specific period (usually within 1 year) of taking out a loan. Check your loan agreement. If you're refinancing an older loan that's been running for several years, clawback penalties almost certainly don't apply.

Should I refinance if I'm planning to sell in 2 years?

Probably not. Refinancing costs S$3,000–S$4,500 upfront (before rebates). If you'll sell in 2 years, you won't have time to recoup these costs through interest savings. Repricing is a better option, or you might skip switching altogether and just pay off the loan when you sell.