What is SORA and How Does it Affect Your Mortgage: Bank Rate Comparison Guide
SORA, or Singapore Overnight Rate Average, is the key benchmark for most Singapore home loans, replacing SIBOR and SOR by 2024. It directly impacts your monthly mortgage payments through compounded averages over 3 or 6 months, making rates more stable than daily fluctuations.
This cluster article breaks down SORA explained, its SORA mortgage impact, and a practical bank rate comparison. For comprehensive mortgage education, see our pillar guide on Singapore home loans at Homejourney. Homejourney prioritizes your safety with verified rates and transparent comparisons.
What is SORA? A Clear Explanation
SORA Singapore is the volume-weighted average rate of actual 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[5]. Published at 9am the next business day, it's based on real transactions, unlike SIBOR's bank forecasts[3].
SORA loans use compounded averages: 3-month compounded SORA averages daily rates over 90 days, while 6-month does so over 180 days. This SORA calculation reduces volatility, as payments reflect a period's average, not a single day's rate[1].
Since 2022, all new mortgages reference SORA, with SOR/SIBOR loans auto-converted by banks adding an Adjustment Spread for risks SORA doesn't capture[1]. Homejourney tracks live 3M and 6M SORA rates daily on our bank rates page.
How SORA Affects Your Mortgage Payments
The SORA mortgage impact is seen in your all-in interest rate: Bank Rate = Compounded SORA + Bank Margin + Adjustment Spread (if converting). For example, if 3M SORA is 2.8% and your margin is 0.8%, your rate is about 3.6% (plus spread ~0.2-0.5%).
Rising SORA increases payments; as of early 2026, 3M SORA hovers around 2.9-3.1% amid global rate stability[3]. A 1% SORA rise on a S$800,000 loan (30-year tenure) adds ~S$350 monthly. Use Homejourney's mortgage calculator for instant simulations.
3M SORA reacts faster to market changes than 6M, suiting short-term borrowers; 6M offers more stability for long-term plans[2]. The chart below shows recent SORA trends in Singapore:
As shown, SORA has stabilized post-2024 peaks, but monitor via Homejourney for refinancing timing.
SORA Bank Rate Comparison: Major Singapore Banks
Compare current indicative rates (as of Feb 2026; verify live on Homejourney). Banks add margins over SORA; fixed deposits (FD) pegs offer stability.
| Bank | 3M SORA + Margin | Effective Rate (est.) | FD Peg Option |
|---|---|---|---|
| DBS | 3M SORA + 0.70% | 3.50% | 1.5% p.a. FDMR - 0.20% |
| OCBC | 3M SORA + 0.65% | 3.45% | 1.4% p.a. FDMR - 0.15% |
| UOB | 3M SORA + 0.75% | 3.55% | 1.45% p.a. FDMR - 0.25% |
| HSBC | 3M SORA + 0.60% | 3.40% | 1.6% p.a. FDMR - 0.30% |
| Standard Chartered | 3M SORA + 0.80% | 3.60% | N/A |
| Maybank | 3M SORA + 0.70% | 3.50% | 1.5% p.a. FDMR - 0.20% |
Rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank vary by profile. Compare all side-by-side on Homejourney bank-ratesBank Rates . Lower margins suit high-credit borrowers; negotiate with Homejourney's brokers.
Fixed vs Floating SORA: Decision Framework
Floating SORA suits risk-tolerant buyers expecting rate drops; fixed (2-3 years) protects against rises but may cost more upfront.
- Risk Tolerance: Conservative? Choose fixed or 6M SORA + FD peg.
- Loan Tenure: Short (<10yrs)? 3M SORA for responsiveness.
- Economy: High inflation? Lock fixed now.
- Refinancing: Check every 6-12 months via Homejourney.
Assess TDSR (60% debt cap) first. Homejourney's eligibility calculator verifies borrowing power instantlyMortgage Rates .
Actionable Steps: Optimize Your SORA Mortgage
- Track SORA on Homejourney bank-rates.
- Compare rates from DBS to Citibank side-by-side.
- Calculate payments with our mortgage calculator.
- Apply via Singpass: One form, multi-bank offers.
- Refinance if margin >0.8% or SORA dips.
For properties in budget, search Homejourney property search. Post-purchase, maintain with aircon services.
FAQ: SORA Singapore Common Questions
What is the current 3M SORA rate?
As of Feb 2026, ~2.9-3.1%; check live on Homejourney[5].
How does SORA calculation work for mortgages?
Compounded daily SORA over 3/6 months + margin; less volatile than daily rates[1].
Is SORA better than SIBOR?
Yes, more transparent via real transactions; SIBOR phased out 2024[2].
Can I switch to SORA mid-loan?
Banks auto-converted SOR/SIBOR; refinance freely via Homejourney for best rates.
Disclaimer: Rates fluctuate; Homejourney provides indicative data. Consult professionals; not financial advice.
Ready for the best SORA rates? Visit Homejourney bank-rates for safe, verified comparisons and apply securely. Trust Homejourney for transparent property journeys.
Related: What is SORA? How It Impacts Your Singapore Mortgage | Homejourney ">What is SORA? How It Impacts Your Singapore Mortgage
