Refinancing vs Repricing: Which Saves More in 2026? | Homejourney

Refinancing is often better than repricing if you can save at least 0.5% on rates from another bank, as it unlocks competitive offers from DBS, OCBC, UOB and more, despite minor fees. Repricing suits staying with your current bank for simplicity when savings are smaller. Homejourney helps you compare both options safely via our verified bank rates tool.

This cluster dives deep into Refinancing vs Repricing: Which is Better for You, building on our pillar guide to Singapore home loans. With SORA at 3-year lows around 1.34%, HDB owners saved up to $3,600 yearly on $400k loans by switching in 2025[1]. Trust Homejourney for transparent tools to decide confidently.

What is Refinancing vs Repricing?

Refinancing means switching your home loan to a new bank, like from DBS to OCBC, for better rates or terms. It involves legal and valuation fees (S$2,000-S$3,000 typically, often subsidized)[2]. Repricing is changing packages within the same bank after lock-in, costing S$800-S$1,000 admin fees[3].

Private property owners refinance only via banks; HDB owners can switch from HDB's 2.6% loan (irreversible) to banks at 1.48%-1.8%[1]. Banks like POSB offer fixed rates at 1.6%, halving payments for some[4]. Homejourney's bank-rates page compares DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank and others instantly.

SORA (Singapore Overnight Rate Average) pegs most floating rates; 3-month SORA hit 1.34%, driving 60% more HDB-to-bank switches at OCBC[1]. Fixed rates dominate, with 90% of refinancers choosing them for budgeting certainty[1].

When Refinancing Beats Repricing

Choose refinancing if another bank offers 0.3%-0.5% lower rates, as subsidies cover costs. Example: On a S$500,000 loan, dropping from 3% to 1.6% saves S$700 monthly (S$8,400 yearly), recouping S$2,500 fees in 3 months[4]. Repricing limits you to your bank's packages, often worse than new-customer deals[3].

HDB upgraders in areas like Punggol or Sengkang refinanced post-2023 lock-ins, accessing cash rebates and free conversions after year 1[1]. Investors note: Refinance for flexibility like higher loans or cash-out, unavailable via repricing[5].

The chart below shows recent interest rate trends in Singapore:

Rates fell sharply into 2026, but may stabilize mid-year[1]. Track live 3M/6M SORA on Homejourney to time your move perfectly.

Costs and Break-Even Analysis

Refinancing costs: Legal fees (subsidized for loans >S$300k HDB/S$400k private), valuation (partial subsidy)[3]. Total outlay: Near zero with promotions. Repricing: S$800-S$1,000 flat fee, no subsidies[3].

Calculate break-even: (Monthly savings x 12) / Total fees = months to recover. S$500 savings/month, S$2,500 fees = 4.2 months. Use Homejourney's refinancing calculator at https://www.homejourney.sg/bank-rates#calculator. See our related guide: How to Calculate If Refinancing Is Worth It | Homejourney .

Hidden fees: Clawback if early exit (avoid post-lock-in), processing[2].
Savings tip: Banks compete; submit one app via Homejourney to get offers from all.

2025 data: HDB refinancers saved enough for Tokyo trips[1]. Mid-2026 moderation expected as 2023/24 borrowers already switched[1].

Refinancing Steps: How to Switch Banks Safely

Follow these refinancing steps for a smooth refinance process:

Check eligibility: >6 months from current bank notice; LTV/TDSR compliant (MAS rules). Use Homejourney calculator.
Compare rates: On https://www.homejourney.sg/bank-rates, view DBS (1.48% 2-yr fixed), OCBC, UOB etc.
Submit application: One form via Singpass on Homejourney - auto-fills data, sends to multiple banks.
Valuation & legal: Bank appoints valuer; lawyer handles redemption (2-4 weeks).
Lock new loan: Sign, funds transfer; old loan closes. Total: 4-6 weeks.

How to refinance tip: Apply during promotions for rebates. Insider: Time before lock-in ends to avoid penalties. Detailed process in Step-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney .

Repricing Process: Simpler but Limited

Refinance application within bank: Notify post-lock-in, pay fee, pick new package. No lawyer needed, 1-2 weeks. Best if your bank matches market (e.g., DBS 1.6% fixed)[4]. But switch banks via Homejourney for true competition - let DBS, HSBC fight for you.

2026 outlook: Healthy activity early, then steady[1]. HDB note: No return to 2.6% loan post-bank switch.

Money-Saving Tips for 2026

Negotiate: Leverage Homejourney multi-bank offers for better rebates.
Combine goals: Refinance when buying via https://www.homejourney.sg/search.
Track rates: Homejourney SORA tool + chart.
Post-refi: Maintain property with aircon-services.

Compare best rates: Best Bank Refinancing Rates Comparison 2026 | Homejourney . Disclaimer: Not financial advice; consult professionals. Rates as of Jan 2026[1][4].

FAQ: Refinancing vs Repricing in Singapore

1. Which is cheaper: refinancing or repricing?
Refinancing often nets more savings due to competition, with fees subsidized. Repricing fees S$800+ but no bank switch[3].

2. Can I refinance my HDB loan?
Yes, to banks like UOB at lower rates, but irreversible. Savings significant if >0.5% drop[1].

3. How long is the refinance process?
4-6 weeks; faster via Homejourney Singpass[Homejourney].

4. Should I switch mortgage bank now?
Yes if post-lock-in and rates <your current. Use our tool: bank-rates.

5. What if rates rise mid-2026?
Choose fixed or free-conversion packages[1].

Ready to save? Compare rates and switch mortgage bank on Homejourney's secure platform today. Link back to our pillar: Singapore Home Loans Guide. Homejourney prioritizes your trust with verified data and one-click applications.