Refinance vs Reprice Your Singapore Home Loan
A lower mortgage rate can lose its appeal once switching costs arrive. Compare refinancing and repricing using the same loan balance, repayment period and a realistic allowance for fees.
Before celebrating a cheaper mortgage, invite the lawyer, valuer and your existing bank to the party. They may all have invoices.
Refinancing moves your Singapore home loan to another lender. Repricing changes the package with your existing bank. Refinancing is better only if its additional savings justify its additional costs and conditions.
Start with the costs you cannot see in the rate
As checked on 10 November 2026, DBS lists a repricing administration fee of about S$800. OCBC lists S$500, unless the existing package permits a fee-free switch.
Refinancing can involve legal and valuation fees, early repayment penalties and subsidy clawbacks, meaning you must repay benefits previously received. Ask for a written breakdown, including charges for insufficient notice.
Check subsidy repayment deadlines separately from lock-in expiry. Check repricing penalties too. Staying with the same bank does not automatically make every charge disappear.
Put both options through the same calculation
Consider a hypothetical S$500,000 loan with 20 years remaining, repaid monthly.
Assume repricing offers 2.4% annually with an S$800 fee. Refinancing offers 2.0% with S$3,000 in total costs. These are illustrative rates, not advertised bank offers.
Both start together, remain unchanged for two years and have no other penalties, subsidies or fees. Costs are paid upfront, not added to the loan.
Over 24 months, interest totals approximately S$23,090 with repricing and S$19,210 with refinancing, allowing for the falling loan balance.
Refinancing saves S$3,880 in interest but costs S$2,200 more upfront. Its net advantage is therefore about S$1,680. The additional costs are recovered through interest savings around month 14.
Now suppose refinancing alone also triggers a 1.5% penalty, or S$7,500, plus a S$2,000 subsidy clawback. Those additional S$9,500 of costs turn that two-year advantage into a S$7,820 disadvantage.
For general information only, not personal financial, investment, tax or legal advice. Investments carry risk. Check information independently and seek qualified advice for your circumstances. Editorial policy and corrections.
Keep reading
Recommended Articles to read
Based on this article and the topics you have read in this browser.
