# Singapore Overnight Rate Average (SORA)

- Topic: Financing & loans
- Last updated: 6 Nov 2026
- Fact-checked against official government sources: 6 Nov 2026
- Canonical URL: https://propertymeter.sg/glossary/sora/

## What is SORA (Singapore Overnight Rate Average)?

The Singapore Overnight Rate Average (SORA) is the average interest rate at which banks lend Singapore dollars to each other overnight without collateral. It is calculated and published daily by MAS, and it is the main benchmark for floating-rate home loans in Singapore since SIBOR was discontinued after 31 December 2024.

## Key facts

- **Administered by:** The Monetary Authority of Singapore (MAS)
- **What it measures:** The volume-weighted average rate of unsecured overnight interbank SGD borrowing
- **Transactions counted:** Those traded and booked between 8am and 6.15pm
- **Published:** By 9am the next business day on the MAS website
- **Compounded SORA tenors:** 1-month, 3-month and 6-month
- **Replaced:** SOR and SIBOR; SIBOR was discontinued immediately after 31 December 2024

## How SORA works

Every business day, MAS takes the overnight unsecured loans that banks make to each other in Singapore dollars and calculates their volume-weighted average rate. That figure is SORA, computed from the transaction data that banks report to MAS.

A single day's SORA is volatile, so loans use **compounded SORA**: SORA compounded over the previous 1, 3 or 6 months. MAS publishes these averages alongside the daily rate.

| Benchmark | Status |
| --- | --- |
| SORA | Current benchmark for SGD interest rates, published by MAS |
| SOR (swap offer rate) | Discontinued |
| SIBOR | Discontinued immediately after 31 December 2024 |

## How it affects your home loan

With a SORA-pegged loan, your rate is compounded SORA plus a spread set out in your loan package. The rate resets at regular intervals, so your monthly repayment can rise or fall. Banks must tell you in advance, usually 30 days, before they change the interest rate on your housing loan.

## Example

You borrow $800,000 over 25 years at 3-month compounded SORA plus a 0.70% spread. These SORA levels are for illustration only.

| Compounded SORA | Your rate | Monthly repayment |
| --- | --- | --- |
| 1.3% | 2.0% | $3,390.83 |
| 1.8% | 2.5% | $3,588.93 |
| 2.3% | 3.0% | $3,793.69 |

A one-point rise in SORA adds about $403 a month to this loan.

## Common mistakes

- **Comparing spreads only.** Compare the effective interest rate, the lock-in period and the penalties too.
- **Budgeting at today's rate.** Check that you could still afford the repayment if SORA rose by one or two points.
- **Confusing daily SORA with compounded SORA.** Your loan uses the compounded rate, not the latest daily figure.

## Frequently asked questions

### How is a SORA home loan rate made up?

A SORA-pegged loan usually charges a compounded SORA rate, such as 3-month compounded SORA, plus a spread set by the bank. When compounded SORA moves, your rate and monthly repayment move with it at each reset.

### Is a SORA loan better than a fixed-rate loan?

It depends on where rates go. A SORA loan follows the market, so it falls when rates fall and rises when they rise. A fixed rate gives certainty for the fixed period. Compare the effective interest rate and the lock-in terms of each package.

### Does the SORA level affect how much I can borrow?

Not directly. For the Total Debt Servicing Ratio, banks must assess residential loans at an interest rate of at least 4% a year, or the loan's actual rate if higher.

## Sources

1. [Singapore Overnight Rate Average (SORA)](https://www.mas.gov.sg/monetary-policy/sora) (MAS)
2. [Interest rate benchmarks transition](https://www.mas.gov.sg/regulation/interest-rate-benchmarks-transition) (MAS)
3. [How home loans work](https://www.moneysense.gov.sg/how-home-loans-work/) (MoneySense)

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Source: PropertyMeter (https://propertymeter.sg/glossary/sora/). General information only, not financial, legal or tax advice.