Refinance vs Reprice Singapore: Compare Fees, Balances and Flexibility

Repricing changes the package with your existing lender. Refinancing replaces the loan with another lender. Compare both against staying on your present terms, using the same balance, remaining tenure and realistic horizon.

Three routes to compare

Repricing may involve less administration, but is not automatically free or the cheapest option. Refinancing needs lender approval and coordination of redemption and new funding. MoneySense: home loans, repricing and refinancing.

A consistent comparison

1. Obtain the outstanding balance and current repayment schedule.
2. Ask both lenders for quotes over the same remaining term.
3. Choose a horizon consistent with your sale plans and the offered rate period.
4. Compare interest plus fees, then examine monthly cashflow and remaining balances.
5. Run a shorter-horizon case and identify any new exit charges.

A worked refinance example

Assume S$700,000 outstanding, 25 years left, a current 3.5% rate and a new 2.9% rate. Both remain constant for a 36-month scenario. Payments fall from S$3,504.36 to S$3,283.19. With S$2,500 switching costs, interest savings of S$12,312.07 leave S$9,812.07 net economic savings.

Lower payments release S$7,962.46 over those 36 months. After fees, cash released is S$5,462.46; the new loan balance is also S$4,349.60 lower. Those two components reconcile to the same S$9,812.07 economic gain, subject to display rounding.

Cumulative interest savings recover the fee in month 8. Lower monthly payments replenish the initial fee cash in month 12. Neither measure discounts money over time or predicts future rates.

Do not mistake a longer term for a cheaper loan

A new 30-year loan can reduce payments relative to a loan with 20 years remaining even if the rate has not improved. The lower instalment may reflect slower principal repayment and more interest. The refinance calculator deliberately compares the same tenure; use separate amortisation schedules to evaluate a requested term change.

Restrictions that can decide the route

Existing penalties and clawbacks can outweigh rate savings. A new lock-in may conflict with an expected sale or lump-sum repayment. A floating-rate offer does not remove those constraints. For HDB borrowers, refinancing to a bank cannot later be reversed into an HDB loan for the same flat. HDB: refinancing with a financial institution.

Use the result to identify the strongest acceptable offer. A small positive gain may not justify the time or loss of flexibility; a larger saving still depends on approval and the terms actually offered.

Last updated: 14 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections