SORA Linked Home Loans Singapore: Complete 2026 Guide | Homejourney
This definitive guide explains SORA linked home loans in Singapore, covering SORA loan Singapore essentials, 3M SORA vs 6M SORA, SORA rate mortgage trends, and SORA vs SIBOR shifts for 2026 buyers and refinancers. Homejourney prioritizes your safety with verified rates and transparent tools to build trust in every decision.[1][2][6]
As Singapore's property market evolves post-SIBOR discontinuation in January 2025, SORA home loans dominate floating-rate options from DBS, OCBC, UOB, and more. Track live rates on Homejourney's bank rates page for secure comparisons.[1][4]
What is SORA? Singapore Overnight Rate Average Explained
SORA (Singapore Overnight Rate Average) is the volume-weighted average rate of borrowing transactions in Singapore's unsecured overnight interbank SGD cash market, calculated daily by the Monetary Authority of Singapore (MAS) between 8am and 6:15pm.[1][6]
Unlike SIBOR, SORA uses actual transaction data with no speculation, making it transparent and manipulation-resistant. Banks peg floating home loans to compounded SORA over 1-month, 3M SORA, or 6M SORA periods for stability.[1][4]
For HDB or private property buyers, a SORA home loan means your rate = compounded SORA + bank margin (typically 0.5%-1.0%). Homejourney verifies these daily for accuracy.[2]
How SORA is Calculated
MAS publishes daily SORA and compounded rates. Compounded 3M SORA, for example, averages overnight rates over 90 days, smoothing volatility.[1][4][6]
- Daily SORA: Actual interbank loans.
- Compounded: Rolling average for loan pegs.
- Updated: Daily on MAS site, live on Homejourney bank rates.
SORA vs SIBOR: Why the Switch Happened
SIBOR, phased out January 1, 2025, was a forward-looking estimate prone to manipulation. SORA vs SIBOR favors SORA's backward-looking, transaction-based reliability.[1][4][5]
| Feature | SIBOR | SORA |
|---|---|---|
| Basis | Estimates | Actual trades[1][6] |
| Tenors | 1M-12M | 1M, 3M, 6M compounded[1] |
| Risk | Manipulation | Transparent[1] |
All major banks like DBS, OCBC, UOB now use SORA loan Singapore packages. Compare on Homejourney for safety.[2]
3M SORA vs 6M SORA: Key Differences
3M SORA compounds over 90 days for quarterly adjustments; 6M SORA over 180 days for semi-annual changes, offering more stability but slower rate drops.[1][4]
| Aspect | 3M SORA | 6M SORA |
|---|---|---|
| Adjustment Frequency | Quarterly | Semi-annually[1] |
| Volatility | Medium | Lower[4] |
| Best For | Falling rates | Rising rates[4] |
In falling markets like 2026 (SORA at 1.2% Dec 2025), 3M SORA captures drops faster.[2][4]
How SORA Linked Loans Work
Your SORA rate mortgage = Compounded SORA + margin. Example: 3M SORA 1.2% + 0.7% margin = 1.9% all-in.[2]
Banks review quarterly/semi-annually. Use Homejourney's mortgage calculator for simulations.[3]
Current SORA Rates from Singapore Banks (2026)
As of early 2026, SORA floats ~1.2%-1.35% post-Fed cuts. Bank packages:[2]
- DBS: 3M SORA + 0.65% (~1.85%)
- OCBC: 3M SORA + 0.70% (~1.90%)
- UOB: 3M SORA + 0.60% (~1.80%)
- HSBC: 6M SORA + 0.75% (~1.95%)
- Standard Chartered: 3M SORA + 0.68%
Fixed packages 2.4%-2.9% for 2-5 years popular for stability. Compare all on Homejourney.[2]
SORA Interest Rate Trends
The chart below shows recent SORA trends in Singapore over the past 6 months, highlighting the drop from 3% to 1.2% amid global easing.[1][2]
Rates hit 3-year lows; expect stability unless shocks occur. Track live 3M SORA and 6M SORA on Homejourney.[2]
Fixed vs SORA Floating Loans: Pros, Cons & Who Should Choose What
Fixed loans lock rates (e.g., 2.6% for 3 years); SORA floating adjust with market.[2][3]
| Type | Pros | Cons | Best For |
|---|---|---|---|
| Fixed | Predictable payments[2] | Higher initial rate | Risk-averse, first-timers |
| SORA Floating | Lower in falls[1] | Rate rise risk | Optimists, investors[4] |
80% chose fixed in 2025 for certainty.[2] Assess via Homejourney tools.
Calculating Your SORA Mortgage Payments
For $800k HDB loan, 25 years, 1.9% SORA home loan: ~$4,200/month. Use formula: M = P[r(1+r)^n]/[(1+r)^n-1].[3]
- Input loan amount, tenure, rate on Homejourney calculator.
- Factor TDSR (60% debt cap).
- Monitor SORA shifts quarterly.
Eligibility & TDSR for SORA Loans
MAS TDSR limits debt to 55%-60% income. HDB adds MSR (30%). Banks assess via Singpass on Homejourney.[3]
Example: $10k monthly income qualifies ~$700k loan at 1.9%. Verify on bank-rates.
Refinancing to SORA: When & How
Refinance if current rate > market + costs (1-2% fees). Falling SORA favors switches.[1][2]
- Check lock-in expiry.
- Compare via Homejourney multi-bank tool.
- Apply once, get offers from DBS-UOB etc.
See HDB Loan vs Bank Loan 2026 Comparison | Homejourney for HDB vs bank insights.
Homejourney Tools for SORA Loan Success
Homejourney builds trust with verified data:
- Compare DBS, OCBC, UOB rates side-by-side.
- Singpass applications for instant verification.
- Live SORA rate mortgage tracking.
- Find properties matching budget.
- Mortgage brokers for guidance.
Prioritizing safety, we listen to feedback for better tools.
FAQ: SORA Home Loans Singapore
What is a SORA loan Singapore?
A floating-rate home loan pegged to compounded SORA + margin, replacing SIBOR.[1][6]
3M SORA vs 6M SORA: Which is better?
3M for faster rate drops; 6M for stability in rises.[4]
Current 3M SORA rate Singapore?
~1.2% as of late 2025; check Homejourney live.[2]
SORA vs fixed rate home loan?
SORA cheaper in falls; fixed for predictability.[2]
Can I refinance to SORA loan?
Yes, post-lock-in if savings exceed fees. Use Homejourney.[3]
Best bank for SORA home loan 2026?
Compare UOB (lowest margins) on Homejourney.[2]
Does SORA affect HDB loans?
HDB uses CPF rate (2.6%); bank SORA for private/HDB resale. See HDB Loan vs Bank Loan: Which is Better for 2026? | Homejourney .[2]
Disclaimer: Rates fluctuate; consult professionals. Homejourney provides tools, not advice.
Ready for SORA linked home loans? Start with Homejourney bank rates for safe, trusted financing matching your journey.
