What is the difference between repricing and refinancing?
Repricing is switching to a different loan package with the bank you already have. The loan stays where it is; only the terms change. There is no new lender, no fresh conveyancing and no discharge of the existing mortgage.
Refinancing is moving the loan to a different bank. That means a new mortgage, a new set of legal documents, a fresh valuation and a discharge of the old loan — which is where the cost comes from.
| Repricing | Refinancing | |
|---|---|---|
| Lender | Stays the same | Changes |
| Legal fees | None | S$1,800–3,000 |
| Valuation | Usually not required | S$300–800 |
| Admin fee | Often S$500–800, sometimes waived | n/a |
| Time to complete | Weeks | About 3 months |
| Paperwork | Minimal | Full application |
| Typical rate | Slightly worse | Best available |
| TDSR reassessment | None | Exempt for owner-occupied |
Which one costs less on a real loan?
Take S$600,000 outstanding with 20 years left, currently at 4.2%. Assume refinancing gets you 3.1% and your existing bank will only reprice you to 3.35% — a quarter-point worse.
The refinance has the better rate. It also has the fees. Over a two-year package the comparison looks like this:
| Reprice to 3.35% | Refinance to 3.1% | |
|---|---|---|
| New instalment | S$3,434 | S$3,358 |
| Monthly saving | S$266 | S$342 |
| Cost to arrange | S$800 | S$3,000 |
| Break-even | 3 months | 9 months |
| Net gain over 2 years | S$9,198 | S$9,928 |
On these numbers the refinance still wins, but not by as much as the rate difference suggests — the fees eat a large share of the advantage. Narrow the rate gap slightly, or add a subsidy clawback, and repricing takes the lead.
When is repricing the better choice?
Whenever the rate gap is small enough that the fees outweigh it, and whenever speed or simplicity matters.
- The rate difference is under roughly 0.3%, so the fees consume most of the gain.
- Your outstanding balance is modest — under about S$300,000 — which makes any fixed cost proportionally heavier.
- You are still inside a subsidy clawback window and would have to repay a legal subsidy.
- You need it done quickly, or you would rather not go through a full application.
- Your income situation has changed and you would prefer not to be assessed at all — though for an owner-occupied home, refinancing is TDSR-exempt anyway.
When is refinancing worth the extra effort?
When the balance is large, the rate gap is real, and you are outside both the lock-in and the clawback window.
- The rate gap is 0.4% or more and your outstanding balance is above roughly S$400,000.
- Your bank's repricing offer is noticeably off the market — which happens more often than it should.
- You want a package feature your current bank does not offer, such as a longer fixed period.
- You are moving off an HDB concessionary loan, where there is no lock-in to escape but the decision is permanent.
How do I get the best of both?
Get the refinancing quote first, then take it to your existing bank and ask them to match it. Banks reprice more generously against a concrete competing offer than against a request, and it costs you nothing to try.
If they match or come close, repricing wins on total cost because the fees disappear. If they do not, you already have the refinance lined up and no time has been lost.
Start this four to five months before your lock-in expires. Most lenders need about three months' notice of redemption, and letting the lock-in lapse first parks you on the prevailing rate — usually the most expensive one the bank offers.
Work out your own number
Refinance Break-Even Calculator
Run both options. Set the fees to zero for repricing, and to your actual quote for refinancing.
Open the calculator →Frequently asked questions
What is repricing a home loan?
Switching to a different loan package with the bank you already have. The loan does not move, so there is no conveyancing, no fresh valuation and no discharge of the existing mortgage — usually just an administrative fee of a few hundred dollars, sometimes waived.
Is repricing cheaper than refinancing?
Almost always cheaper to arrange, and often cheaper overall once fees are counted. Refinancing typically gets a better rate, but on a S$600,000 loan roughly S$3,000 in legal and valuation fees can absorb much of a 0.25% advantage over a two-year package.
Can I reprice during my lock-in period?
Usually not to a better rate, since the lock-in is what the bank is protecting. Most banks will let you reprice as the lock-in comes to an end — typically allowing you to apply in the last few months of it so the new package starts the day the old one expires.
How much does repricing cost?
Commonly a conversion or administrative fee of S$500–800, and some banks waive it. There is no legal fee and normally no valuation, which is the whole reason repricing is cheaper than moving lender.
How long does repricing take?
Weeks rather than months. There is no new mortgage to register and no discharge to arrange, so the timeline is set by the bank's internal processing rather than by conveyancing.
Should I reprice or refinance an HDB flat?
If you are already on a bank loan for the flat, the ordinary comparison applies. If you are on an HDB concessionary loan, refinancing to a bank is a one-way move — you cannot return to the 2.6% rate on that flat — so it deserves a much longer view than a two-year package comparison.
Will my bank match a refinancing offer?
Often, at least partly. Banks reprice more competitively against a concrete competing quote than against a general request, because retaining an existing loan costs them far less than winning a new one. Get the quote first, then ask.
Do I lose my legal subsidy if I reprice?
Clawback windows usually attach to redeeming or refinancing the loan rather than to repricing within the same bank, but the terms vary by package. Check your letter of offer, because a clawed-back subsidy can outweigh the entire rate advantage.
Sources
Every rate on this page was read directly from IRAS on . Stamp duty rules change with little notice — confirm against IRAS before you commit to a purchase.
- ↗ MAS — Who TDSR applies to, including the refinancing exemption
- ↗ MAS — SORA benchmark rates
- ↗ HDB — Housing loan from HDB
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