SORA, the Singapore Overnight Rate Average, is the Monetary Authority of Singapore's benchmark interbank interest rate. Most floating rate Singapore mortgages are priced as compounded SORA, usually 1 month or 3 month, plus a fixed bank margin, and it replaced the older SIBOR benchmark.

What is SORA? — Singapore property glossary

What is SORA? SORA, the Singapore Overnight Rate Average, is the benchmark interest rate published by the Monetary Authority of Singapore, calculated as the volume weighted average of actual overnight interbank Singapore dollar borrowing. Most floating rate Singapore mortgages are now priced as compounded SORA, usually 1 month or 3 month, plus a fixed bank margin.

SORA replaced SIBOR as the standard reference rate because it is derived from real, transacted interbank borrowing rather than bank estimates, making it a more transparent and reliable benchmark for pricing floating rate loans.

A floating rate mortgage package quoted as, for example, 3 month compounded SORA plus 0.65 percent, moves automatically as SORA moves, which is why bank packages are compared on the spread over SORA rather than a single fixed number. Fixed rate packages, by contrast, lock in one rate for a set period regardless of where SORA moves.

Because SORA changes with monetary policy and market conditions, always check the current published rate on the MAS website before comparing floating packages, and model a rate rise scenario, not just today's number, when deciding between fixed and floating.

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Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.

SORA

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