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
As of 6 Nov 2026. Source: MoneySense, MAS.
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:
- Stay on your current package.
- Reprice with your current bank.
- Refinance 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 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.
Related terms
Sources
Every figure on this page was checked against the official government sources above on 6 Nov 2026. See our editorial policy.
This is general information, not financial, legal or tax advice.