What is the difference between refinancing and repricing?
Refinancing means switching your mortgage to a different bank for potentially better rates, while repricing means switching to a different package within your existing bank. Refinancing offers more options but involves legal fees and takes six to eight weeks, whereas repricing is faster and cheaper but limits you to your current bank's offerings. The best choice depends on the rate difference and your circumstances, and both should ideally be explored two to three months before your lock-in period ends.
Last updated: 8 May 2026
Refinancing and repricing are two strategies for reducing your mortgage interest costs, but they differ fundamentally in execution, costs, and implications.
Refinancing involves switching your mortgage from your current bank to a different bank. This is essentially taking out a new loan with the new bank to pay off your existing loan. Refinancing gives you access to the full range of packages available in the market, potentially securing a significantly better rate than your current bank offers. However, refinancing involves legal work (new mortgage documentation), legal fees (though many banks offer legal subsidies as an incentive), and a fresh valuation of your property. The process typically takes six to eight weeks from application to completion.
Repricing, in contrast, involves switching to a different loan package within your existing bank. Because you are staying with the same lender, the process is simpler and faster, usually completed within a few weeks. Repricing typically incurs a lower administrative fee (usually S$500 to S$800) and does not require new legal documentation. However, your options are limited to what your current bank offers, which may not be the most competitive in the market.
The best approach depends on the rate differential and your specific circumstances. If the rate savings from switching banks are substantial enough to offset the costs and effort of refinancing, it makes financial sense to refinance. If the difference is marginal, repricing with your current bank may be more efficient.
Timing is also important. Both refinancing and repricing usually cannot be done during a lock-in period without penalty. The optimal time to explore these options is two to three months before your lock-in period expires, giving you enough time to compare options and complete the necessary processes.
Cashew proactively monitors your loan against the market and alerts you when better options become available, taking the guesswork out of the refinancing and repricing decision.