Refinancing vs Repricing: Which Saves You More in 2026? | Homejourney
This is Homejourney's definitive pillar guide to refinancing vs repricing in Singapore. Discover when to reprice mortgage, refinance difference, or switch banks or stay, with real calculations, costs, and step-by-step advice tailored for HDB and private property owners. Prioritizing your safety and trust, we verify all data to help you make confident decisions on loan repricing and beyond.
Whether you're an HDB upgrader or private property investor, understanding refinancing vs repricing can save you thousands. Homejourney simplifies this with tools like our bank rates comparison featuring DBS, OCBC, UOB, and more. Start by checking rates today for transparent, verified insights.
Table of Contents
- Executive Summary
- 1. Refinancing vs Repricing: Core Differences
- 2. When to Choose Refinancing vs Repricing
- 3. Full Costs Breakdown: Hidden Fees Exposed
- 4. Current SORA Rates and Market Trends
- 5. Break-Even Analysis: Real Savings Calculator
- 6. Timing Your Move: Lock-In Periods and Rates
- 7. Step-by-Step Guide to Refinancing or Repricing
- 8. Negotiation Tips and Cash Rebates
- 9. HDB vs Private Property Specifics
- 10. How Homejourney Makes It Safe and Simple
- FAQ: Common Refinancing vs Repricing Questions
- Next Steps with Homejourney
Executive Summary
Refinancing means switching banks for better rates or terms, often with subsidies covering legal fees. Repricing stays with your current bank, typically costing $800-$1,000 in admin fees but no legal work.[4][5] In 2026, with 3-month SORA at 1.34%—a 3-year low—HDB owners are refinancing to bank loans at 1.55%-1.8%, saving up to $3,600 yearly on a $400,000 loan.[1]
Homejourney verifies these trends from official sources like MAS and HDB. Use our mortgage calculator to see if refinancing vs repricing suits you. Key takeaway: Refinance if savings exceed 0.5%; reprice for simplicity if under lock-in ends soon.[1][3]
1. Refinancing vs Repricing: Core Differences
Refinancing is taking a new loan from another bank to pay off your existing one. It resets terms, potentially lowering rates, extending tenure, or cashing out equity. Ideal for accessing competitive packages from DBS, OCBC, UOB, HSBC, or Standard Chartered.[4]
Repricing (or loan repricing) changes packages within the same bank post-lock-in. No new loan; just better rates from your current lender. Simpler but often less competitive than market offers.[3][5]
| Aspect | Refinancing | Repricing |
|---|---|---|
| Bank Switch | Yes, to new bank | No, same bank |
| Typical Cost | Legal/Valuation (~$2-3k, often subsidized) | $800-$1,000 admin fee |
| Rate Savings Potential | Higher (market best) | Moderate (bank's internal) |
| Flexibility | New tenure, features | Limited to current bank |
This table shows why refinancing often wins for bigger savings, per 2025 data where HDB-to-bank switches rose 60% at OCBC.[1] Always check Homejourney's bank-rates for live comparisons.
Refinance Difference Explained
The refinance difference lies in competition: New banks offer cash rebates (up to 1.5% of loan) and free conversions. Repricing lacks this, as existing customers get worse rates.[4][5] Example: From 3% to 1.6% saves $500/month on $500k loan via repricing, but refinancing might hit 1.48% with rebate.[3]
2. When to Choose Refinancing vs Repricing
Choose repricing if your bank's new package matches market rates and you're avoiding hassle. Best post-lock-in (2-3 years).[1]
Opt for refinancing (switch banks or stay? Switch!) when rates drop >0.5%, like now with SORA at 3-year lows. HDB owners: Bank loans beat 2.6% HDB rate.[1][3] Private owners: Gain flexible features unavailable internally.
- Reprice if: Lock-in ending soon, minimal rate gap, prefer simplicity.
- Refinance if: Seeking best rates from UOB/HSBC, cash rebates, or tenure reset.
- Stay put if: Within lock-in; penalties erase savings.
Insider tip: Mid-2026 moderation expected as 2023/24 loans refinance out.[1] Track via Homejourney.
3. Full Costs Breakdown: Hidden Fees Exposed
Refinancing costs: Legal ($1,500-$2,500), valuation ($500-$1,000)—subsidized for loans >$300k HDB/$400k private.[4] Total ~$2-3k, offset by rebates.
Repricing: $800-$1,000 fee, no subsidy typically.[3][5] Clawback if early exit: 1.5% of loan.
| Cost Type | Refinancing | Repricing |
|---|---|---|
| Upfront Fees | Legal + Valuation (subsidized) | Admin $800-1k |
| Clawback Penalty | Yes, if early | No (post-lock-in) |
| Ongoing | None extra | Potentially higher rates |
Details in Hidden Refinancing Costs. Banks like DBS subsidize fully for qualifying loans.
4. Current SORA Rates and Market Trends
SORA (Singapore Overnight Rate Average) is the key benchmark for floating loans, now at 1.34% for 3-month—lowest in 3 years.[1] Fixed rates: 1.48%-1.8% for 2-3 years.[1]
Banks peg to 3M/6M SORA + spread (0.2%-0.5%). 2025 saw HDB refinancing surge as bank loans undercut HDB's 2.6%.[1]
The chart below shows recent interest rate trends in Singapore:
As seen, rates dropped sharply in late 2025, spurring activity. Expect steady HDB switches in 2026, moderating mid-year.[1] Track live on Homejourney's bank-rates.
5. Break-Even Analysis: Real Savings Calculator
Break-even = Upfront costs / Monthly savings. Example: $2,500 costs, $300/month savings = 8.3 months break-even.
Real case: $400k HDB loan from 3% to 1.6% saves $360/month. Refinance costs $2k (subsidized) = 5.5 months break-even. Worth it![3] See How to Calculate If Refinancing Is Worth It.
Quick Calculator: Use Homejourney's tool. Input loan amount, current/new rate for instant results.
- Estimate monthly payment: Loan * (r/12) / (1 - (1+r/12)^-n)
- Subtract new from old for savings.
- Divide costs by savings.
If <12 months, act now. HDB example: $3,600 first-year savings.[1]
6. Timing Your Move: Lock-In Periods and Rates
Lock-ins: 2-3 years at 3-4% from 2022/23 ending now—prime time.[1] Avoid penalties (1.5%).
Best: When SORA falls >0.5%, post-lock-in. Mid-2026: Depends on promos.[1] Reference When to Refinance.
Strategy: Monitor via Homejourney SORA tracker. Fixed rates preferred by 90% HDB refinancers for stability.[1]
7. Step-by-Step Guide to Refinancing or Repricing
For Repricing (2-4 weeks):
- Check lock-in expiry via bank app/statement.
- Compare internal packages.
- Submit repricing request (Singpass-enabled).
- Pay $800-1k fee.
For Refinancing (4-8 weeks):
- Compare rates on Homejourney (DBS 1.48%, OCBC 1.55%).
- Submit multi-bank app via Singpass—one form, multiple offers.
- Bank approves, arranges valuation/legal.
- Sign new loan; old redeemed automatically.
Homejourney's multi-bank submission saves branch visits. Docs: NRIC, income proof, property title.[4]
8. Negotiation Tips and Cash Rebates
Leverage offers: "Bank X offers 1.4% + 1% rebate—can you match?" Rebates: 0.5-1.5% of loan (~$2k-$6k on $400k).
Features: Free conversion Year 1.[1] Connect with Homejourney Mortgage Brokers for personalized negotiation. See Best Bank Rates 2026.
- Ask for full legal subsidy.
- Bundle with credit cards/insurance for extras.
- Time before rate hikes.
9. HDB vs Private Property Specifics
HDB: Can't revert to HDB loan post-bank refinance.[1] 2025 surge: 60% YoY at OCBC.[1] Min loan $300k for subsidies.
Private: No HDB option; focus bank switches. Lower private refinancing in 2025 as owners upgrade instead.[1]
Both: TDSR 55% limit applies. Use property search for budget fits.
10. How Homejourney Makes It Safe and Simple
Homejourney prioritizes trust: Verified rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
- Compare refinancing rates instantly.
- One app to all banks via Singpass.
- Live SORA tracking.
- Mortgage brokers for guidance.
Safety first: Transparent process, no hidden fees. Post-refinance, check aircon services for home maintenance.
FAQ: Common Refinancing vs Repricing Questions
Q: What's the refinance difference from repricing?
A: Refinancing switches banks with new terms; repricing changes packages internally. Refinancing offers better rates/rebates.[4][5]
Q: Should I reprice mortgage or refinance in 2026?
A: Refinance if >0.5% savings post-costs; reprice for ease. Use Homejourney calculator.
Q: Switch banks or stay with current?
A: Switch for competition; stay if matched. HDB: Bank loans now cheaper than 2.6%.[1]
Q: Loan repricing costs?
A: $800-$1k admin.[3]
Q: Best banks for refinancing?
A: Compare DBS, OCBC, UOB on Homejourney. Rates from 1.48%.[1]
Q: Can I refinance HDB to bank and back?
A: No, one-way to bank.[1]
Q: Break-even for $500k loan?
A: ~6-12 months at current rates. Details in guide.
Q: Fixed vs floating for refinancing?
A: Fixed popular (90% HDB) for certainty.[1]
Next Steps with Homejourney
1. Visit bank-rates to compare refinancing vs repricing options.
2. Use calculator for personalized savings.
3. Apply via Singpass—get offers from all major banks.
4. Consult our brokers for free advice.
Homejourney builds trust through verified data, user feedback, and safety. Start your secure journey today—prioritizing your confident decisions in refinancing vs repricing.
Disclaimer: Not financial advice. Consult professionals. Rates as of Jan 2026; subject to change. Homejourney verifies from MAS/HDB sources.[1][3][4]
