Sarah Chen
If you've only got a minute:
With Singapore home loan rates well off their recent highs, more homeowners are reviewing their mortgages and asking the same question: now that I'm out of (or nearly out of) my lock-in, should I reprice with my current bank or refinance to a new one?
Before comparing packages, two factors set the boundaries of what's available to you.
1. Your remaining loan tenure
Your tenure has an inverse relationship with your monthly instalment:
When you refinance, you can often reset or adjust your tenure. Some homeowners stretch it out to ease monthly cashflow. Others keep payments roughly the same and shorten the tenure, finishing the loan years earlier and saving a meaningful chunk of interest. Repricing with your existing bank usually keeps your remaining tenure as is, so if restructuring your tenure is part of the goal, refinancing gives you more room to do it.
2. The borrower's age
How much you can borrow (your Loan-to-Value limit) is affected by age. If your loan tenure plus your age stretches beyond 65, the amount you can borrow is capped. For joint borrowers, banks use an income-weighted average age. This rarely blocks a refinance, but it's worth knowing before you assume you can extend your tenure freely.
Repricing means switching to a new package within your current bank. You're renegotiating your rate without leaving. There's no lawyer involved, no valuation, and the paperwork is light. It typically completes in about a month and has no cost.
Refinancing means moving your loan to a new bank. You apply for a fresh loan, the property is valued, and lawyers handle the conveyancing. It takes a little longer to complete the process (clients are recommended to begin looking for packages 3 months before their lock in ends) and carries legal and valuation fees of around $2,000 to $3,000, though these costs are usually heavily subsidised, and in many cases totally covered.
So far, repricing looks simpler. But simpler isn't the same as cheaper.
Here's the part most people miss: banks price for new customers
When you reprice, your bank knows the friction of leaving keeps many people put, so the retention offer it puts in front of you is rarely its best rate. A competitor bank that actually wants your business can come in lower, and sweeten the deal with rebates that cover most of your refinancing costs.
That's why the smart move isn't to reprice by default. It's to get a refinance quote first, use it as your benchmark, then decide. Sometimes the refinance wins outright. Sometimes your bank, once it sees you're serious, matches or beats it with a repricing offer, in which case you stay and still come out ahead. Either way, you only know you're getting the best deal if you've compared, and you can't compare against an offer you never asked for.
The point isn't that refinancing always wins. It's that repricing without checking the wider market almost guarantees you leave money on the table.
One important exception: if your outstanding loan is below around $200,000, repricing is usually the wiser call. Most banks don't offer legal or valuation subsidies on smaller loans, so you'd pay the full $2,000 to $3,000 in refinancing costs out of your own pocket. On a loan that size, those fees often cancel out whatever interest you'd save by switching, so staying put and repricing tends to come out ahead.
| Refinance | Reprice | Notes | |
|---|---|---|---|
| Legal & valuation fees | ~$2,000 to $3,000 | None | Often offset by the new bank's cash rebates |
| Conversion / admin fee | None | 0 | Totally waived for existing customers |
| Early redemption penalty | ~1.5% of outstanding loan | None | Only if you exit during your lock-in period |
| Processing time | ~2-3 months | ~1 month | Start the refinance process early so it lines up with your lock-in expiry |
Figures are typical estimates and vary by bank and property type.
Suppose you have $400,000 outstanding at 2.5% and your lock-in is ending.
The 0.4% gap between repricing and refinancing is worth roughly $1,600 a year on a $400k loan. Over two years that's about $3,200, and after your remaining refinancing costs you're still ahead by around $2,700 by refinancing instead of repricing.
If the rate gap had been tiny, repricing's convenience might have won. But you'd never have known the gap existed without comparing. That's the whole point.
If there's any chance you'll sell within the next few years (say you're nearing the end of your Minimum Occupation Period, or you're already thinking about upgrading), the rate is only half the decision. The wrong package can trap you with a penalty exactly when you want to move. The right one lets you walk away cleanly.
Look for these features:
This is precisely where refinancing earns its keep. Repricing usually limits you to the one or two packages your bank decides to offer, which may not include a sale waiver or a short lock-in. Refinancing opens up the whole market, so you can deliberately pick a package built around your plan to sell, rather than settling for whatever your current bank happens to put in front of you.
Repricing and refinancing are both legitimate ways to cut your interest cost. They're two routes to the same destination: paying less. But treating repricing as the automatic choice, just because it's the path of least resistance, is how homeowners quietly overpay for years.
The better habit is simple. When your lock-in is ending, always compare a refinance offer before you reprice. If your bank's retention rate genuinely matches the market, repricing is a fine, low-effort choice. More often, the market has something better, especially if you're planning to sell and need the right package features, not just a low headline rate.
At Cashew, you can compare more than 500 home loan packages in one place, see your real savings, and apply online with our Best Rate Guarantee (with cashback on completion). Our advisors will tell you straight: sometimes the answer is "your bank's repricing offer is great, take it," and sometimes it's "you'd save far more by refinancing, let's do that." And once your loan is settled, our Refinance Watch keeps an eye on rates for you, so you'll know the moment it's worth switching again.
Either way, the winner is you, with a lower interest bill and a package that actually fits your plans.
Compare home loan rates on Cashew or speak to a Cashew advisor to see how much you could save.
This article is for general information only and should not be relied upon as financial advice. Loan packages, rates, and features vary by bank and are subject to change. Speak to a qualified advisor about your specific situation before making a decision.
When choosing between a 2-year fix at 1.4% and a 3-year fix at 1.6% on a S$2 million loan, the decision comes down to whether two-year fixed rates in late 2028 will exceed 2.0%, which is the break-even point where total interest costs are equal across both paths. The 2-year fix is the more defensible default for borrowers without a strong view on rising rates, as it costs less upfront and preserves the option to reprice with better information in 2028. The 3-year fix only earns its premium if you genuinely expect rates to rise above 2.0% or if the added certainty is worth the extra cost to you.
Sarah Chen·20 Jul 2026
The HDB concessionary loan offers stability and flexibility, but if you plan to sell within a few years, a fixed bank loan at a lower rate can result in significant interest savings. The key is securing a package with a sale waiver clause that removes early redemption penalties when you sell, otherwise the penalty can wipe out those savings. Choose the HDB loan if your timeline is uncertain, and consider a bank loan only if you have a firm exit plan and the right package conditions.
Sarah Chen·14 Jun 2026© 2026 Cashew. All rights reserved.
