Answer
Mortgage Repricing vs Refinancing in Singapore
Your lock-in is ending and rates have moved. Should you reprice with your current bank or refinance to a new one? Here's how to decide.
Answer: Repricing (same bank) costs $0–$800, takes 1–2 weeks, no legal fees. Refinancing (new bank) costs $2,500–$3,500, takes 2–3 months, but gives access to all banks' rates. Reprice if the rate gap is under 0.3%. Refinance if the gap is over 0.3% — on a $750,000 loan, that's ~$2,250/year in savings, covering legal costs within 15 months.
Repricing vs Refinancing — Full Comparison
| Repricing | Refinancing | |
|---|---|---|
| Also called | Free conversion, rate switch | Loan transfer, bank switch |
| What happens | Switch rate package, same bank | Move entire loan to new bank |
| Legal fees | $0 | $2,000–$3,000 |
| Valuation | Not needed | $300–$500 |
| Admin fee | $0–$800 | Usually $0 |
| Total cost | $0–$800 | $2,500–$3,500 |
| Processing time | 1–2 weeks | 2–3 months |
| New lock-in | Typically 2 years | 2–3 years |
| Cashback | Rare | 0.2%–0.4% of loan amount |
| Rate options | Only current bank's packages | All banks' packages |
| Paperwork | Minimal | Full loan application |
Costs vary by bank. Some banks subsidise legal fees and valuation for refinancing. Always ask.
Break-Even Math — When Refinancing Pays Off
Refinancing costs ~$3,000 in legal fees. How long to recoup that through interest savings?
| Outstanding Loan | Rate Gap 0.2% | Rate Gap 0.3% | Rate Gap 0.5% |
|---|---|---|---|
| $500,000 | 36 months | 24 months | 14 months |
| $750,000 | 24 months | 16 months | 10 months |
| $1,000,000 | 18 months | 12 months | 7 months |
| $1,500,000 | 12 months | 8 months | 5 months |
Approximate break-even assuming $3,000 in legal costs and no cashback. Green = breaks even within new lock-in period (worthwhile). Factor in cashback to shorten these further.
Decision Framework
Reprice when...
- • Your bank's repricing rate is within 0.2% of the best market rate
- • Your outstanding loan is under $500,000 (small absolute savings)
- • You value simplicity and speed over squeezing every basis point
- • You're planning to sell within 2–3 years anyway
Refinance when...
- • The rate gap is 0.3% or more vs your bank's best repricing offer
- • Your outstanding loan is above $750,000 (larger absolute savings)
- • The new bank offers good cashback (0.3%+ of loan) and legal subsidies
- • Your current bank's repricing options are limited or uncompetitive
Worked Example — $750,000 Loan
Your lock-in just ended. Current rate: 2.5%. Your bank offers repricing to 1.8%. A new bank offers 1.5%.
| Reprice to 1.8% | Refinance to 1.5% | |
|---|---|---|
| Monthly payment (25yr) | $3,093 | $2,999 |
| Monthly savings vs 2.5% | $271 | $365 |
| Annual savings | $3,252 | $4,380 |
| Upfront cost | $0 | $3,000 |
| Cashback (0.3%) | — | $2,250 |
| Net cost year 1 | $0 | $750 |
| Savings over 2-year lock-in | $6,504 | $8,010 |
In this case, refinancing saves $1,506 more over 2 years — but comes with more paperwork and a 2–3 month process. If the extra $1,506 isn't worth the hassle, repricing is the sensible default.
How to Reprice (Step by Step)
1. Contact your bank's mortgage team
Call, email, or use the app. Ask for available repricing packages and any admin fees.
2. Compare the offered rates
They'll show you fixed and floating options. Compare against market rates from other banks.
3. Accept and sign
Sign the repricing letter. New rate takes effect within 1–2 weeks. Done.
How to Refinance (Step by Step)
1. Collect quotes (3 months before lock-in ends)
Get rate quotes from 3–4 banks. Ask about cashback, legal subsidies, and lock-in terms.
2. Apply to the new bank (2 months before)
Submit documents: payslips, NOA, CPF statements, existing loan statement. Bank arranges valuation.
3. Get letter of offer and appoint lawyer
Review terms carefully. The bank usually recommends a panel lawyer. Legal fees: $2,000–$3,000.
4. Completion (around lock-in expiry)
New bank pays off old bank. Mortgage transfers. New rate and lock-in begin.
Want to see the monthly payment difference?
Run the numbers at different interest rates for your exact loan amount.
FAQ
What is the difference between repricing and refinancing?
Repricing (also called free conversion) means switching to a different rate package within your current bank. Refinancing means moving your entire loan to a new bank. Repricing is faster and cheaper but may not get you the best rate. Refinancing takes longer and costs more but opens up all banks’ rates.
How much does repricing cost?
Most banks charge $0 for repricing after your lock-in period ends. Some charge a small admin fee of $200–$800. No legal fees, no valuation needed. It’s processed in 1–2 weeks.
How much does refinancing cost?
Legal fees: $2,000–$3,000. Valuation: $300–$500. Fire insurance: ~$100–$200. Total: $2,500–$3,500 out of pocket. Many banks offer cashback of 0.2–0.4% of loan amount and legal fee subsidies to offset these costs.
Can I reprice during the lock-in period?
Generally no. Repricing is typically available only after your lock-in period ends. Some banks may allow it with a penalty, but this is rare. Your lock-in terms are in your letter of offer.
When does refinancing make more sense than repricing?
When the rate gap between your current bank’s best repricing offer and another bank’s rate exceeds 0.3%. On a $750,000 loan, a 0.3% difference saves ~$2,250/year — enough to cover the legal fees within 12–15 months. Also when your current bank’s repricing options are limited.
How often should I review my mortgage rate?
Every time your lock-in period ends (typically every 2–3 years). Set a calendar reminder 3 months before lock-in expiry. Also review when there’s a significant rate environment change — like SORA dropping materially.
Related
- Refinance Home Loan Singapore — full refinancing guide
- Mortgage Lock-In Period Singapore — penalties and timing
- Fixed vs Floating Rate Singapore
- Property Loan Interest Rates 2026 — current rates
- How to Pass TDSR
Last updated Feb 2026. Rates and costs vary by bank — always get actual quotes. This is informational, not financial advice.