Two ways to change a home loan
If a home-loan package is no longer competitive, there are two different routes. MoneySense defines repricing (also called conversion) as changing to another package with your current bank. Refinancing switches the loan to a new lender. Both can change your rate and repayment schedule, but they may have different costs and eligibility requirements.
A new package can appear cheaper when you compare only its introductory rate. The actual result depends on the remaining loan balance, rate after any fixed period, fees and how long you expect to keep the loan. The decision should be made from the whole repayment schedule, not a single promotional number.
Check the current contract first
Before requesting offers, find the loan’s lock-in period and the date it ends. MoneySense advises checking whether penalties, clawbacks, legal costs or conversion fees apply if you terminate or change the existing package. Ask the bank whether the replacement package has a new lock-in period and what happens if you sell the home or repay early during it.
For a bank loan, request the property loan fact sheet. MoneySense says it sets out information including the loan amount and tenure, total repayment, lock-in period, rate and repayment schedule, a rate-change illustration, EIR and penalty fees. Ask the bank to explain assumptions you do not understand.
Compare packages on matching assumptions
Use the same outstanding principal and remaining term when comparing offers. Look at:
- the interest rate now and how it may reset later;
- the monthly instalment and total projected repayment;
- legal, valuation, conversion and discharge fees;
- cash rebates or subsidies that may be clawed back;
- early-repayment charges and the new lock-in period.
A lower payment achieved by extending the tenure can cost more in total interest. A lender may also offer a lower rate for a fixed promotional period before a variable rate applies. Compare the full timeline, including the rate after the promotion, and stress-test a higher repayment if the loan is floating-rate.
Know the HDB-loan boundary
MoneySense states that an HDB flat buyer cannot refinance an existing bank loan back to an HDB loan. Moving from an HDB loan to a bank loan is possible subject to the lender’s criteria, but that move is not a reversible two-way switch. This matters if flexibility is valuable to you.
Do not assume that a lower bank quote is automatically better than the HDB loan, or vice versa. The relevant comparison includes rate risk, repayment flexibility, cash needs and your own financial plans. Check current HDB eligibility and CPF housing-withdrawal rules before changing how you service the loan.
A practical decision rule
Ask your current bank for a repricing offer first, then compare it against refinancing offers from other lenders. Calculate the net saving after all costs over the period you expect to keep the loan. If the projected saving relies on rates staying unchanged for many years, treat it as a scenario rather than a guarantee.
The best deal is not necessarily the lowest initial rate. It is the package whose total cost and conditions remain workable for your household if rates, income or plans change.
Sources
- MoneySense: How home loans work — repricing, refinancing, lock-in checks and property loan fact sheets; verified 15 Oct 2026.