What is SORA & Mortgage Impact: Homejourney Benefits

SORA, or Singapore Overnight Rate Average, is the key benchmark for most floating home loans in Singapore, directly influencing your monthly mortgage payments through compounded averages like 3-month SORA plus a bank spread. Administered by the Monetary Authority of Singapore (MAS), it replaced SIBOR and SOR by 2024 for greater transparency and stability[5][1]. This cluster article dives into SORA explained, its mortgage impact, and why Homejourney's safe, trusted platform makes applying seamless—link to our pillar guide on Singapore home loans for full coverage.

What is SORA? SORA Singapore Explained

SORA stands for Singapore Overnight Rate Average, the volume-weighted average rate of actual borrowing transactions in Singapore's unsecured overnight interbank SGD cash market between 8am and 6:15pm[5]. Unlike SIBOR, which was based on banks' forecasts, SORA uses real transaction data reported daily to MAS and published at 9am the next business day for full transparency[1][3].

Banks commonly use 3-month compounded SORA (average of daily SORA over three months) or 6-month versions for home loans, making rates less volatile than daily resets[2]. For example, if 3M SORA is 2.8%, your effective rate might be 3M SORA + 0.8% spread = 3.6% p.a. in the first year[1].

This backward-looking calculation protects borrowers from sudden spikes, as rates reflect past data rather than future guesses[3]. Track live 3M SORA and 6M SORA updates daily on Homejourney's bank rates page, prioritizing your safety with verified data.

SORA Mortgage Impact: How SORA Calculation Affects Payments

SORA calculation compounds daily rates over 1, 3, or 6 months, added to a bank margin (spread) like 0.8% initially, rising to 1% later[1]. For a S$500,000 loan at 25 years, a 0.25% SORA rise could add S$100+ monthly—vital for HDB upgraders or private property investors.

Since 2024, all new and repriced loans reference SORA, with existing SIBOR/SOR loans auto-converting via adjustment spreads[2]. Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator lets you simulate SORA mortgage impact instantly, factoring TDSR (max 60% of income for debts)[1].

The chart below shows recent interest rate trends in Singapore, highlighting SORA movements over the past 6 months:

As seen in the chart, SORA has stabilized post-2024 hikes, but monitor via Homejourney for refinancing timing—our platform verifies rates from DBS, OCBC, UOB, and more for trusted decisions.

3-Month vs 6-Month SORA: Key Differences

3M compounded SORA reacts faster to market changes (quarterly average), suiting short-term risk-tolerant buyers, while 6M offers smoother payments for stability seekers[2]. Banks like DBS peg packages to 3M SORA + spread, with lock-ins of 2 years before repricing fees apply[3].

For first-time HDB buyers under TDSR, choose based on risk: conservative profiles prefer 6M; aggressive investors opt for 3M. Compare current spreads side-by-side on Homejourney bank rates from partners like HSBC, Standard Chartered, Maybank, CIMB, and UOB.

Benefits of Applying via Homejourney: Safe, Fast, Multi-Bank

Homejourney prioritizes user safety with transparent, verified SORA tracking and one-stop loan applications. Submit one form via Singpass—banks instantly verify income/employment for faster approvals, no paperwork hassles[internal].

Compare rates instantly: DBS (3M SORA + 0.75%), OCBC (+0.80%), UOB, HSBC, and 8+ banks side-by-side.
Personalized offers: One application gets quotes from all partners, maximizing your best rate.
Eligibility calculator: Assess borrowing power pre-TDSR limits before property hunting on Homejourney property search.
Refinancing simplified: Time repricing when SORA dips, with broker guidance.

Unlike scattered bank visits, Homejourney's trusted environment builds confidence—feedback-driven improvements ensure secure transactions. See related insights in What is SORA? How It Impacts Your Singapore Mortgage | Homejourney ">What is SORA? How It Impacts Your Singapore Mortgage.

Actionable Steps: Secure Your Best SORA Loan

Check live SORA on Homejourney bank-rates.
Use calculator to model payments under current 3M SORA ~2.9% + spreads.
Apply via Singpass for multi-bank offers—approvals in days.
Match budget to properties via property search; maintain with Aircon Services ">aircon services.
Consult Homejourney brokers for personalized advice (not financial advice; seek professionals).

This framework helps first-time buyers or refinancers minimize costs safely. For market data, visit Projects Directory ">projects directory.

FAQ: SORA Singapore Common Questions

What is the current 3M SORA rate?
Track daily on MAS site or Homejourney—typically ~2.8-3.0% as of 2026 trends[5]. Use our chart above for visuals.

How does SORA affect my monthly mortgage?
A 0.5% SORA jump on S$1M loan adds ~S$350/month; compounded averages smooth volatility[1].

Is SORA better than fixed rates?
SORA floats with market; fixed suits risk-averse. Compare on Homejourney for your profile.

Can I switch to SORA now?
Yes, reprice post-lock-in; Homejourney streamlines multi-bank submissions.

Why choose Homejourney for loans?
Singpass speed, verified rates, one-app multi-offers—your safe path to the best deal.

Ready for the best SORA mortgage? Start at Homejourney bank-rates today. Explore our pillar on Singapore home financing for deeper insights.