# Repricing

- Topic: Financing & loans
- Last updated: 6 Nov 2026
- Fact-checked against official government sources: 6 Nov 2026
- Canonical URL: https://propertymeter.sg/glossary/repricing/

## What is repricing a home loan?

Repricing means switching your home loan to a new package with the same bank, usually to get a lower interest rate. It is also called conversion. Your loan stays with your current bank, but a conversion fee may apply, penalties may apply if you are still in the lock-in period, and the new package may have its own lock-in.

## Key facts

- **What changes:** Your loan package and interest rate, with the same bank
- **Also called:** Conversion
- **Possible costs:** Conversion fees, and penalties if you are still within the lock-in period
- **Compared with refinancing:** Refinancing moves the loan to a different lender
- **Official tip:** Ask your existing bank for repricing options before checking with other banks

## How repricing works

When your fixed or promotional rate ends, or market rates fall, your bank may offer you a different package. Moving to it is repricing. MoneySense suggests comparing three options:

1. **Stay on your current package.**
2. **Reprice** with your current bank.
3. **[Refinance](https://propertymeter.sg/glossary/refinancing/)** with a different bank.

Compare each option's repayment schedule, advertised rates and effective interest rate (EIR), not just the headline rate.

| | Repricing | Refinancing |
| --- | --- | --- |
| Lender | Same bank | A different lender |
| Costs to ask about | Conversion fees; penalties if still in the lock-in | Penalties within the lock-in, clawbacks of subsidies, additional legal fees |
| New lock-in | Ask whether the new package has one | Ask whether the new package has one |

## Example

You have $800,000 left on a 25-year loan at 3.0%, paying $3,793.69 a month. Your bank offers to reprice to 2.5% for a $500 conversion fee. These figures are for illustration.

| | Monthly repayment |
| --- | --- |
| At 3.0% | $3,793.69 |
| At 2.5% | $3,588.93 |
| Monthly saving | $204.76 |

The fee is recovered in about three months. Check whether the new package has a new [lock-in period](https://propertymeter.sg/glossary/lock-in-period/) before you accept.

## Common mistakes

- **Accepting the first offer.** Compare it against refinancing quotes from other banks.
- **Repricing inside the lock-in.** Check the penalty first; it can outweigh the saving.
- **Ignoring the rate after the promotional period.** A low first-year rate can be followed by much higher ones.

## Frequently asked questions

### What is the difference between repricing and refinancing?

Repricing keeps your loan with the same bank on a new package. Refinancing moves it to a different lender, which may offer a better rate but can bring extra costs such as legal fees and clawbacks of subsidies from your current bank.

### Can I reprice during my lock-in period?

You can, but penalties may apply. The loan's fact sheet lists the fee for refinancing with the same bank.

### What should I ask my bank before repricing?

Ask about any conversion fee, whether you are still in the lock-in period, whether the new package has its own lock-in, and which refinancing rules apply, such as loan tenure limits. The MAS fact sheet suggests asking about these rules.

## Sources

1. [How home loans work](https://www.moneysense.gov.sg/how-home-loans-work/) (MoneySense)
2. [Response to feedback on proposed amendments to notices on residential property loans fact sheet (December 2022)](https://www.mas.gov.sg/-/media/mas/news-and-publications/consultation-papers/2021-consultation-paper-on-fact-sheet-amendments/final-publication-proposed-amendments-to-notices-on-residential-property-loans-fact-sheet.pdf) (MAS)

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Source: PropertyMeter (https://propertymeter.sg/glossary/repricing/). General information only, not financial, legal or tax advice.