What is Repricing vs Refinancing?
When your Singapore home loan's lock-in period ends, you have two options to get a better rate:
- Repricing: Switch to a new package with your current bank
- Refinancing: Move your entire loan to a different bank
Both can save you thousands — but the right choice depends on your situation.
Use our free home loan calculator Singapore to see exactly how much you can save with a lower interest rate.
Repricing — How It Works
Repricing means staying with your existing bank but switching to a better package. For example, if you are on DBS 3-year fixed at 3.5% p.a. and your lock-in ends, you can call DBS and switch to their current 3.10% p.a. package.
Repricing Costs:
| Fee | Typical Amount |
|---|---|
| Repricing admin fee | SGD 200 — 800 |
| Legal fees | None |
| Valuation fees | None |
| Total | SGD 200 — 800 |
Key advantage: Minimal paperwork, no legal fees, done within 1-2 weeks.
Refinancing — How It Works
Refinancing means paying off your current loan and taking a new loan with a different bank. You go through the full mortgage application process again.
Refinancing Costs:
| Fee | Typical Amount |
|---|---|
| Legal fees (conveyancing) | SGD 1,800 — 3,000 |
| Valuation fees | SGD 300 — 500 |
| Bank processing fees | SGD 0 — 800 |
| Total | SGD 2,100 — 4,300 |
Key advantage: Access to better rates from competing banks. Many banks offer legal fee subsidies of SGD 1,800 — 2,000 to attract refinancing customers.
Repricing vs Refinancing — Cost Comparison Example
Let's say you have SGD 600,000 outstanding on your home loan at 3.50% p.a. with 20 years remaining.
| Option | New Rate | Monthly Savings | Annual Savings | One-Time Cost | Break-Even |
|---|---|---|---|---|---|
| Reprice with DBS | 3.10% | SGD 148/mo | SGD 1,776 | SGD 500 | 3 months |
| Refinance to OCBC | 2.95% | SGD 204/mo | SGD 2,448 | SGD 800 (after subsidy) | 4 months |
In this example, refinancing to OCBC saves SGD 672 more per year — even after costs, you are better off refinancing.
When to Choose Repricing
Repricing makes sense when:
- The rate difference between banks is less than 0.15% p.a.
- Your outstanding loan is below SGD 300,000 (legal fees eat into savings)
- You prefer minimal hassle and paperwork
- Your lock-in period ends soon and rates are expected to fall
- You have changed jobs recently (refinancing requires income verification)
When to Choose Refinancing
Refinancing makes sense when:
- A competing bank offers 0.20% p.a. or more lower than your current rate
- Your outstanding loan is above SGD 500,000 (legal fee subsidies make it worthwhile)
- Your current bank refuses to match competitor rates
- You want to change your loan tenure or structure
- You qualify for a better rate due to improved credit score or income
Step-by-Step: How to Reprice
- Check when your lock-in period ends (look at your loan agreement)
- Call your bank 2-3 months before lock-in ends
- Request their current package options
- Compare with competitor rates from MAS website
- Negotiate — banks often have unpublished rates
- Sign the repricing form and pay the admin fee
Step-by-Step: How to Refinance
- Start comparing rates 3-4 months before lock-in ends
- Use our mortgage calculator to estimate savings
- Apply to 2-3 banks simultaneously (multiple applications do not hurt your credit score if done within 30 days)
- Engage a lawyer once approved (many banks provide a panel lawyer)
- Complete legal documentation (takes 4-6 weeks)
- New bank pays off old bank — process complete
Frequently Asked Questions
Can I refinance during my lock-in period?
Yes, but you will pay a penalty — typically 0.75% to 1.50% of the outstanding loan amount. For a SGD 600,000 loan, that is SGD 4,500 to SGD 9,000. In most cases, it is not worth it unless you are moving to a significantly lower rate.
Does refinancing affect my credit score in Singapore?
A refinancing application will result in a credit inquiry, which can temporarily lower your credit score by a few points. However, multiple applications made within 30 days are typically counted as one inquiry.
How often can I reprice or refinance?
You can reprice or refinance every time your lock-in period ends. Most Singaporeans reassess their home loan every 2-3 years when fixed rate lock-ins expire.
Is a mortgage broker worth it for refinancing?
A good mortgage broker can access exclusive rates not advertised publicly and handle paperwork for free (they earn commission from banks). For loans above SGD 500,000, using a broker often gets you a better deal.
Check Your Current TDSR Before Refinancing
Before refinancing, ensure you still meet the TDSR (Total Debt Servicing Ratio) requirement of 55%. If your income has decreased or you have taken on more debt since your original loan, you may not qualify for refinancing.
Final Recommendation
For most homeowners with loans above SGD 500,000 and a rate difference of 0.20% or more, refinancing wins. For smaller loans or minimal rate differences, repricing is simpler and faster.
Use our home loan calculator to calculate your exact monthly savings at different interest rates before making your decision.