What Does It Mean?
The Singapore Overnight Rate Average (SORA) is the volume-weighted average rate of unsecured overnight interbank Singapore Dollar cash transactions, published by MAS. Since 2021 SORA has replaced SIBOR as the benchmark for most Singapore home loans. Floating mortgage rates are typically quoted as 3-month compounded SORA plus a bank spread of 0.75 percentage points to 1.25 percentage points.
Key Differences
| Aspect | SORA (current) | SIBOR (legacy) |
|---|---|---|
| Status | Active benchmark | Discontinued from 2024 |
| Underlying market | Unsecured overnight SGD interbank transactions | Bank-submitted offered rates |
| Administered by | MAS (Monetary Authority of Singapore) | ABS Benchmarks Administration |
| Usual tenor for mortgages | 3-month compounded SORA | 1M / 3M SIBOR |
| Rate volatility | Lower — backward-looking average | Higher — single-day quote |
| Transparency | Published daily on MAS site, based on actual trades | Submission-based, phased out after LIBOR reforms |
Worked Example
Typical pricing on a 3-month compounded SORA floating mortgage, illustrated with an indicative 3M SORA of 2.80%:
On a $1,125,000 loan over 25 years, that range translates to roughly $5,662 – $5,969 per month. A 0.5 percentage-point move in SORA changes the payment by about $307/month at this loan size.
Check the current published SORA rate on the MAS website before locking in a floating-rate home loan — the value refreshes every Singapore business day.
Where to Find This on ShiokNest
- Mortgage Calculator
- Refinancing Calculator
- Loan Comparison Calculator
Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.
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This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of April 2026. Check official sources for the latest.