SORA Linked Home Loans Explained: Benefits via Homejourney
SORA linked home loans are floating-rate mortgages pegged to the Singapore Overnight Rate Average (SORA), administered by the Monetary Authority of Singapore (MAS), offering transparency over outdated benchmarks like SIBOR.
SORA rates, calculated daily from actual interbank transactions, provide reliable pricing for home loans in Singapore. This cluster article dives into SORA loan Singapore details, including 3M SORA and 6M SORA options, and highlights why applying through Homejourney ensures a safe, trusted process with multi-bank comparisons.
What is SORA and How Do SORA Home Loans Work?
SORA, or Singapore Overnight Rate Average, is the volume-weighted average rate of borrowing transactions in Singapore's unsecured overnight interbank SGD cash market between 8am and 6.15pm daily[4]. Unlike forward-looking SIBOR, SORA uses backward-looking actual transaction data, making it more transparent and less prone to manipulation[1][2].
Banks compound SORA over periods like 1-month, 3-month, or 6-month to set floating home loan rates, refreshing every few months for stability[2]. For example, a typical package might offer 3M Compounded SORA + 0.80% p.a. for the first two years, rising to +1.00% thereafter[1].
This structure replaced SIBOR and SOR by end-2024, now dominating Singapore's bank home loan market[1]. Homejourney tracks live SORA rates daily on our bank rates page, helping you stay ahead.
3M SORA vs 6M SORA: Key Differences for Singapore Borrowers
3M SORA averages rates over three months, adjusting quarterly for balanced stability against short-term fluctuations. It's the most common for home loans, with 2024 averages of 3.50%-3.62% before recent drops[2].
6M SORA uses a six-month average, changing semi-annually for even less volatility but slower response to rate cuts. Choose 3M SORA if you prefer quicker benefits from falling rates; opt for 6M if prioritizing predictability[2].
The table below compares them:
As of late 2025, SORA has fallen to 1.2%, its lowest since 2022, boosting affordability[3]. Use Homejourney's mortgage calculator to see impacts on your payments.
Current SORA Rate Mortgage Trends in Singapore
SORA-linked loans from partners like DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank typically add spreads of 0.6%-1.0%[1]. Fixed packages (2.4%-2.9% for 2-5 years) offer stability, while SORA floats with market shifts[2][3].
The chart below shows recent interest rate trends in Singapore, illustrating SORA's decline:
As seen, rates hit 3-year lows, making 2026 refinancing attractive via Homejourney's multi-bank system[3]. Compare side-by-side on our bank rates page.
SORA vs SIBOR: Why SORA Wins for Singapore Home Buyers
SIBOR was forward-looking and manipulable; SORA is transaction-based and MAS-published daily at 9am for full transparency[1][4]. SORA loans adjust based on real past data, avoiding SIBOR's estimation risks.
Post-2024 transition, all floating bank loans use SORA, phasing out SIBOR completely[1]. For HDB upgraders or private property investors, SORA offers better alignment with global trends like US Fed cuts[2].
Homejourney simplifies this: Submit one Singpass-enabled application to get personalized offers from all major banks, prioritizing your safety and verification.
Benefits of Applying for SORA Home Loans via Homejourney
Homejourney stands out by creating a safe, trusted environment for property financing, verifying data and listening to user feedback for continuous improvement.
- Live Rate Tracking: Monitor 3M SORA, 6M SORA updated daily—no guesswork.
- Multi-Bank Comparison: View DBS, OCBC, UOB, HSBC rates instantly without visiting multiple sites.
- Instant Calculations: Use our eligibility calculator to assess TDSR (capped at 60% of income) compliance[1].
- Singpass Applications: Auto-verify income/employment for faster approvals.
- One-Click Multi-Offers: Apply once, receive competing SORA packages.
- Expert Guidance: Connect with Homejourney Mortgage Brokers for personalized advice.
Link your budget to properties via property search. For full context, see our pillar: SORA Linked Home Loans Singapore: Complete 2026 Guide.
Actionable Steps to Apply for SORA Linked Home Loans
- Check Eligibility: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator factoring TDSR.
- Compare Rates: Visit bank-rates for live SORA + spreads from 11 banks.
- Track Trends: Reference the chart and MAS data[4].
- Apply via Singpass: Submit once for multi-bank offers.
- Refinance if Needed: No lock-in penalties post-period; explore via Homejourney.
Disclaimer: Rates fluctuate; consult professionals. Homejourney provides tools, not financial advice.
FAQ: SORA Linked Home Loans Explained
What is a SORA home loan in Singapore?
SORA home loans are floating mortgages pegged to compounded SORA (e.g., 3M SORA + spread), replacing SIBOR for transparency[1][4].
3M SORA vs 6M SORA: Which is better?
3M adjusts faster to rate drops; 6M offers more stability. Assess via Homejourney's tools[2].
How do SORA rates affect my monthly payments?
They refresh quarterly/semi-annually; recent drop to 1.2% lowers costs[3]. Calculate on our site.
Can I apply for SORA loans on Homejourney?
Yes—compare, calculate, and submit via Singpass for top bank offers securely.
SORA vs fixed rates: What to choose?
SORA for potential savings in falling markets; fixed for predictability[2].
Ready for the best SORA linked home loan? Start at Homejourney bank rates for trusted, verified comparisons. Explore related: SORA Home Loans 2026 Rates.
