This website is Mobile-friendly.
The Historical Chart offers a glimpse of the past trends of SIBOR and SORA rates starting from 2007 till presence. The chart is updated monthly and is plotted using month-end data points (ie. last working day of every month).
Both 1MSIBOR and 3MSIBOR are officially decommissioned in end 2024. Last SIBOR data point captured in the chart was November 2024.
Note: For mobile phone users, please switch to landscape mode for full view.
The Singapore Overnight Rate Average or SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8.00am and 6.15pm (according to MAS website). This benchmark rate is published by MAS since 1 July 2005. Since 6 August 2020, MAS also publishes the Compounded SORA for 1-month, 3-month and 6-month. Latest rates are available on MAS website by 9am on the next business day.
ABS website. SIBOR is mainly affected by two factors, namely the US Fed interest rates and liquidity in Singapore banking sector. (Note: SIBOR had been phased out and replaced by SORA and it is officially decommissioned in end 2024. Borrowers with existing housing loans pegged to SIBOR were given options by existing financiers to convert their packages.)
The 1-Month Compounded SORA (1M SORA) is computed by compounding the daily published SORA rate over the historical 1-month period. For home loans referencing 1M SORA, interest rate is reviewed on monthly basis.
The 3-Month Compounded SORA (3M SORA) is computed by compounding the daily published SORA rate over the historical 3-month period. For home loans referencing 3M SORA, interest rate is reviewed on 3-monthly basis.
For those familiar with SIBOR, you may wonder how SORA is different from SIBOR and what to expect from SORA. The main difference is the nature of the rate itself. SIBOR is derived from forward-looking rates quoted by banks, while SORA is the volume-weighted average rate based on actual transactions done. SORA is actually a more reliable and transparent benchmark rate than SIBOR.
For the past trend of both SIBOR and Compounded SORA, check out the historical chart.
From the Daily SORA Chart, it can be observed that 3M SORA is less volatile than 1M SORA. This is mainly due to the smoothening effect over a longer interval for 3M SORA which tracks the daily SORA for past 90 days as compared to 1M SORA which tracks the daily SORA for only past 30 days. When SORA is trending up, there is a tendency for 1M SORA to be higher than 3M SORA due to rising SORA rates in the past 30 days. Likewise, 1M SORA tends to be lower than 3M SORA when SORA is trending down.
Home loans referencing SORA are priced at the prevailing base rate plus a fixed spread (eg. 3M SORA + 0.50%). Banks usually give discounted spread in the first few years of the loan tenure. Borrowers can opt for either the 1M SORA or 3M SORA home loan, depending on their risk preference.
One key difference between 1M SORA home loan and 3M SORA home loan is the frequency of interest rate review. Banks reset 1M SORA home loan rates on a monthly basis, whereas 3M SORA rates are recalibrated every three months.
During SORA uptrend, 1M SORA home loan rate moves up earlier as compared to 3M SORA home loan. On the other hand, when SORA declines, you will benefit from lower interests sooner as compared with 3M SORA home loan.
3M SORA home loan may be perceived as more stable relative to 1M SORA home loan, as banks only review the interest rate every 3 months, or 4 times a year. When SORA is trending up, you will see the revised higher rate only in the next review. Likewise, when SORA is trending down, the savings in interest will also be delayed.
Planning to buy a Property or Refinance your Home Loan? Check out Our Services.
We know what matters most to you. Contact us now to get started.
Find out more: Our Services | Why Us? | What our Clients say