SORA Home Loans 2026: Bank Rates Comparison Guide | Homejourney
SORA linked home loans are floating-rate mortgages pegged to the Singapore Overnight Rate Average (SORA), offering transparency over outdated SIBOR rates. This SORA Linked Home Loans Explained Complete: Bank Rate Comparison Guide compares current 2026 rates across major banks like DBS, OCBC, and UOB, helping you choose securely via Homejourney's trusted platform.
At Homejourney, we prioritize your safety by verifying rates daily and providing tools for confident decisions. Track live SORA loan Singapore updates on our bank rates page.[1][6]
What is SORA and Why It Matters for Your Home Loan
SORA, administered by the Monetary Authority of Singapore (MAS), is the volume-weighted average rate of overnight interbank SGD borrowing transactions from 8am to 6:15pm. Unlike SIBOR, which was phased out by 2024, SORA is transaction-based, making it more reliable and less prone to manipulation.[1][4][6]
Banks use compounded SORA over 1-month, 3-month, or 6-month periods plus a margin (typically 0.5%-1.0%) to set your SORA home loan rate. This compounding averages daily rates, reducing volatility—for example, 3-month compounded SORA smooths fluctuations over 90 days.[4]
In 2026, SORA has hit 3-year lows at around 1.2% as of late 2025, influenced by US Fed cuts, potentially easing further.[2] This makes SORA rate mortgage packages more affordable than 2024 averages of 3.50%-3.62%.[1]
3M SORA vs 6M SORA: Key Differences for Singapore Borrowers
3M SORA compounds rates over 90 days, adjusting quarterly for moderate stability. It's popular for balancing responsiveness and predictability—ideal for HDB upgraders in areas like Punggol or Tengah.[1][4]
6M SORA uses 180-day averages, changing semi-annually for even less volatility but slower rate drops. Choose 3M in falling markets to benefit quicker; opt for 6M if prioritizing stability amid uncertainty.[1]
| Feature | 3M SORA | 6M SORA |
|---|---|---|
| Adjustment Frequency | Quarterly | Semi-annually |
| Volatility | Moderate | Lower |
| Best For | Falling rates | Stability seekers |
The chart below shows recent 3M SORA and 6M SORA trends in Singapore:
As seen, rates have declined from 3% to 1.2%, signaling potential savings—track this live on Homejourney.[1][2]
SORA vs SIBOR: Why the Switch Happened
SIBOR, discontinued in 2024, was quote-based and manipulable; SORA is fully transaction-based per MAS guidelines.[4][5] All major banks now offer SORA vs SIBOR replacements, with SORA providing backward-looking stability via compounding.[1][3]
For refinancing, SORA loans suit volatile times better than fixed deposits (FD)-linked rates, which banks adjust discretionarily.[3]
2026 Bank Rate Comparison: SORA Home Loans
Current effective rates (SORA + margin) for new loans or refinancing as of early 2026. Always verify on Homejourney's bank rates page for real-time quotes from partners.[2]
- DBS: 3M SORA + 0.60% (~1.80%); strong for HDB loans with legal subsidies.
- OCBC: 3M SORA + 0.55% (~1.75%); popular fixed-to-SORA hybrids.
- UOB: 3M SORA + 0.65% (~1.85%); cashback up to 0.3%.[3]
- HSBC: 6M SORA + 0.50% (~1.70%); competitive for expats.
- Standard Chartered: 3M SORA + 0.70% (~1.90%).
- Maybank: 3M SORA + 0.58% (~1.78%).
- CIMB, RHB, Public Bank, Hong Leong, Citibank: Rates ~1.75%-1.95%; compare via Homejourney.[2]
Example: For a $800,000 HDB loan at 30 years, 3M SORA + 0.60% yields ~$3,800 monthly vs $4,500 at 2024 peaks. Use our mortgage calculator.[1]
Fixed vs Floating SORA: Decision Framework
Fixed loans (2-5 years at 2.4%-2.9%) offer stability; SORA floating tracks market (now ~1.7%-1.9%).[1][2] Risk-averse buyers (e.g., families in Jurong) prefer fixed; investors eyeing drops choose SORA.
- Assess risk tolerance: High? Go SORA for potential savings.
- Check economic outlook: Fed cuts favor SORA.[2]
- Calculate via Homejourney: Submit one app via Singpass for multi-bank offers.
- Refinance if >0.5% savings; our brokers guide you safely.
Link to our pillar: SORA Linked Home Loans Singapore: Complete 2026 Guide for full coverage.
Actionable Steps on Homejourney
- Visit https://www.homejourney.sg/bank-rates: Compare DBS to Citibank instantly.
- Use Singpass: Auto-verify income for fast approvals.
- Calculate affordability: Pair with property search.
- Connect brokers: Personalized rates from partners.
Disclaimer: Rates fluctuate; not financial advice. Consult professionals. Homejourney verifies data for trust.
FAQ: SORA Linked Home Loans
What is a SORA home loan? A floating-rate loan pegged to compounded SORA + bank margin, replacing SIBOR for transparency.[1][6]
3M SORA or 6M SORA—which is better in 2026? 3M for quicker adjustments in falling rates; 6M for stability. Compare on Homejourney.[1][4]
How do I compare bank SORA rates? Use Homejourney's tool for DBS, OCBC, UOB side-by-side with daily updates.[2]
Can I refinance to SORA now? Yes, if rates drop >0.5%. Apply via our page.[2]
Is SORA safer than fixed rates? SORA is transparent but variable; fixed suits budgeting. Assess via our calculator.[1][2]
Ready to secure the best SORA Linked Home Loans Explained Complete: Bank Rate Comparison Guide? Start at Homejourney bank rates for safe, verified comparisons and multi-bank applications today.
