SIBOR is the discontinued Singapore Interbank Offered Rate, while SORA is the current Singapore Overnight Rate Average benchmark based on actual overnight transactions.
What Is Sibor And SOR?
SIBOR was a daily reference rate banks used for Singapore dollar loans, but it was phased out for new lending in December 2024, while SORA remains the active benchmark based on real overnight interbank transactions.
SIBOR’s last published rate came in at 3.85% on December 31, 2024, and these days you’ll only see it on older loans. (Honestly, it feels like a relic already.) SORA, which the Association of Banks in Singapore publishes, is basically the volume‑weighted average of more than 10,000 overnight trades each day and has become the go‑to benchmark for new home loans. For instance, OCBC offers a 3‑month compounded SORA + 1.35% p.a. package (as of June 2026) (Wikipedia).
What’s happening with SIBOR and SORA?
SIBOR has not been used for new loans since December 31, 2024, and banks are actively helping borrowers convert existing SIBOR loans to the SORA benchmark.
These days, SORA is the reference most banks use for new mortgages and refinancing in Singapore, mainly because it’s built on real transaction data instead of those old bank surveys. (That said, the shift makes sense to me.) Lenders have been reaching out to borrowers, offering SORA‑linked packages that often match or even beat the old SIBOR rates. By the middle of 2026, over 80% of fresh home loans in the city‑state were priced off SORA (Reuters).
How do I switch from SIBOR to SORA?
To switch from SIBOR to SORA, review your loan contract, select a 3‑month compounded SORA package, and confirm the change at least 10–14 days before your next refixing date.
Start by logging into your bank’s online portal and hunt down the “reference rate” or “benchmark” part of your loan details. (Honestly, navigating the menu can be a bit of a hassle, but stick with it.) Jot down when your rate is set to reset—usually every three or six months. Next, hit the “Refinance” or “Switch Package” button and pick a SORA‑based option; DBS, for example, lists a 3M Compounded SORA + 1.25% p.a. deal (as of June 2026). Once you’ve sent in the paperwork, make sure to confirm the change at least 10‑14 days before your next refixing date so you don’t get hit with an unexpected rate jump (Investopedia).
What if switching doesn’t work?
If an internal switch fails, ask your bank about a SORA conversion package, consider adding a small principal top‑up, or use a mortgage broker to compare external offers.
Give your bank’s mortgage hotline a ring and ask about a SORA conversion package—many banks will actually waive the legal fees if you stay with them. (Honestly, that fee waiver can be a nice perk.) Should your loan‑to‑value ratio creep above 50%, you might have to tack on an extra 5‑10% of principal to lock in the most favorable SORA margin. On the other hand, tapping a mortgage broker to shop live quotes from DBS, UOB, and OCBC can be smart; their fee, usually around half a percent of the loan, often pays off if you snag a lower rate.
How can I avoid future SIBOR headaches?
To dodge future benchmark surprises, set calendar reminders for refixing dates, enable rate alerts in your banking app, and keep 12 months of repayments in a high‑yield savings account.
Put a reminder in your calendar about 60 days before each refixing date—that way you’ve got plenty of time to look around for better options. (Honestly, a little foresight saves a lot of headaches later.) Switch on push notifications for “SORA updates” or “Benchmark changes” in your banking app so you’re always in the loop. Keeping roughly a year’s worth of mortgage payments in a high‑yield savings account (currently about 3.5% p.a. in Singapore as of June 2026) can act as a safety net if rates jump; since SORA tends to move only 0.20‑0.30% over a year, that buffer usually keeps your monthly outlay steady without too much stress.
How do I check if my loan is still on SIBOR?
Call your bank’s customer service, provide your loan account number, and ask whether your loan is still tied to SIBOR or has already been moved to SORA.
Your monthly statement might not spell out the benchmark outright, but the bank’s internal system will usually confirm which rate you’re on. (Honestly, a quick call can clear up any confusion.) If you’re still unsure, just ask for written confirmation—it’s the safest bet. While the majority of Singapore banks have already moved their legacy SIBOR loans over to SORA, a handful of older accounts could still be sitting on the old rate if the borrower hasn’t made a move. In that case, it’s wise to switch before your next refixing date to dodge any unwanted rate hike.
