SIBOR stands for the Singapore Interbank Offered Rate (it's been discontinued for new loans since 2024), while SORA is the Singapore Overnight Rate Average, the current benchmark based on real overnight transactions.
What Is Sibor And SOR?
SIBOR was a daily reference rate banks used for Singapore dollar loans, but it got phased out for new lending in December 2024, while SORA remains the active benchmark based on actual overnight interbank lending.
SIBOR's final published rate was 3.85% on December 31, 2024—it's now only found on old loans. SORA, published by the Association of Banks in Singapore (ABS), tracks the volume-weighted average of real transactions and has become the standard for new home loans. Most banks now offer packages tied to 3-month compounded SORA, like OCBC's 3M SORA + 1.35% per year (as of June 2026).
What’s happening with SIBOR and SORA?
SIBOR hasn't been used for new loans since December 31, 2024, and banks are actively helping borrowers switch existing SIBOR loans to SORA benchmarks.
SORA is now the go-to benchmark for new mortgages and most refinancing deals in Singapore. Unlike SIBOR—which relied on bank surveys—SORA comes from over 10,000 daily transactions and feels more transparent. Banks have been reaching out to borrowers to move from SIBOR to SORA packages, often with better rates. By mid-2026, more than 80% of new home loans in Singapore use SORA-based pricing.
How do I switch from SIBOR to SORA?
To move from SIBOR to SORA, check your loan contract, pick a 3-month compounded SORA package, and confirm the switch at least 10–14 days before your next refixing date.
First, log into your bank's portal and find your loan's "reference rate" or "benchmark" section. Note when your rate resets—usually every 3 or 6 months. Then use the "Refinance" or "Switch Package" option to select a SORA-based loan. For example, DBS offers a 3M Compounded SORA + 1.25% p.a. (as of June 2026). After submitting your paperwork, confirm the switch 10–14 days before your refixing date to dodge an unwanted rate jump.
What if switching doesn’t work?
If you can’t switch internally, ask your bank about an internal SORA conversion, consider adding a small principal top-up, or use a mortgage broker to find better terms elsewhere.
Call your bank's mortgage hotline and ask about moving to a SORA conversion package—some banks even waive legal fees if you stay with them. If your loan-to-value (LTV) is over 50%, you might need to add 5–10% principal to lock in the best SORA margin. Or try a mortgage broker who can compare live offers from DBS, UOB, and OCBC; their fee (often 0.5% of the loan) could be worth it if you land a lower interest rate.
How can I avoid future SIBOR headaches?
To dodge future benchmark surprises, set calendar reminders for refixing dates, turn on rate alerts in your banking app, and keep 12 months of repayments in a high-yield savings account.
Mark your refixing dates 60 days early so you have time to weigh your options. Turn on push notifications for "SORA updates" or "Benchmark changes" to stay on top of things. Keep 12 months of repayments in a high-yield savings account (currently around 3.5% p.a. in Singapore as of June 2026) to soften the blow if rates spike. SORA can swing by 0.20–0.30% in a year, so this buffer helps you handle higher payments without too much stress.
How do I check if my loan is still on SIBOR?
Call your bank’s customer service, give them your loan account number, and ask whether your loan is still tied to SIBOR or already moved to SORA.
Your monthly statement might not spell out the benchmark, but the bank's system will know. If you're unsure, ask for written confirmation. Most banks in Singapore have already converted old SIBOR loans, but some older loans might still use SIBOR if the borrower hasn’t taken action. If your loan is on SIBOR and the switch window is still open, act before your next refixing date to avoid a rate hike.
