What is SORA?
SORA (Singapore Overnight Rate Average) is the interest rate benchmark used for Singapore dollar loans and mortgages. Published daily by the Monetary Authority of Singapore (MAS), it measures the volume-weighted average rate of overnight borrowing in Singapore's interbank market.
SORA replaced SIBOR (Singapore Interbank Offered Rate) for all new home loans from 2024. If your loan was pegged to SIBOR before 2024, your bank has already converted it to SORA.
Use our mortgage calculator Singapore to see your monthly repayment at current SORA rates.
Current SORA Rate Singapore (April 2026)
| SORA Type | Current Rate (Apr 2026) |
|---|---|
| Daily SORA | ~3.15% p.a. |
| 1-Month Compounded SORA | ~3.18% p.a. |
| **3-Month Compounded SORA** | **~3.20% p.a.** |
| 6-Month Compounded SORA | ~3.22% p.a. |
Most Singapore mortgages use 3-Month Compounded SORA as the base rate.
How SORA Mortgages Work
Your actual mortgage rate = 3-Month Compounded SORA + Bank Spread
Bank spreads in 2026 range from 0.82% to 0.95% p.a.
With 3M SORA at 3.20%, effective SORA mortgage rates are approximately:
| Bank | Spread | Effective Rate |
|---|---|---|
| DBS | +0.85% | ~4.05% p.a. |
| OCBC | +0.82% | ~4.02% p.a. |
| UOB | +0.88% | ~4.08% p.a. |
| Maybank | +0.90% | ~4.10% p.a. |
SORA vs Fixed Rate — Which is Better in 2026?
| Factor | SORA Floating | Fixed Rate (2-year) |
|---|---|---|
| Current rate | ~4.02-4.10% | ~3.08-3.25% |
| Rate certainty | ❌ Changes quarterly | ✅ Locked for 2 years |
| Prepayment flexibility | ✅ Usually no penalty | ❌ Penalty during lock-in |
| Risk | Rate may rise further | Rate may fall and you miss out |
In April 2026: Fixed rates are lower than SORA floating rates — locking in a 2-year fixed rate makes sense for most borrowers.
How SORA Rate Changes Affect Your Monthly Payment
For a SGD 800,000 home loan with 25 years remaining:
| SORA Change | Rate Change | Monthly Payment Impact |
|---|---|---|
| SORA falls 0.25% | Rate drops 0.25% | Save ~SGD 95/month |
| SORA falls 0.50% | Rate drops 0.50% | Save ~SGD 188/month |
| SORA rises 0.25% | Rate rises 0.25% | Pay ~SGD 97/month more |
| SORA rises 0.50% | Rate rises 0.50% | Pay ~SGD 195/month more |
This shows why SORA loans carry interest rate risk — a 0.50% rise costs nearly SGD 2,340 extra per year.
SORA Rate History — How It Has Moved
| Period | 3M SORA | Context |
|---|---|---|
| 2020-2021 | 0.05-0.20% | COVID-19, ultra-low rates |
| 2022 | 0.20-3.20% | Fed rate hike cycle begins |
| 2023 | 3.50-3.80% | Peak rate environment |
| 2024 | 3.20-3.60% | Rates start to ease |
| 2025 | 3.00-3.30% | Gradual decline |
| Apr 2026 | ~3.20% | Stabilising |
SORA has fallen from its 2023 peak but remains elevated. Most economists expect continued gradual decline through 2026-2027.
When to Choose SORA Floating vs Fixed
Choose SORA Floating If: - You believe rates will fall significantly in the next 12-18 months - You may make large partial repayments (no penalty) - You plan to sell the property within 1-2 years - Your loan is small (rate risk is manageable)
Choose Fixed Rate If: - You want payment certainty for budgeting - Current fixed rates are lower than effective SORA rates (as in April 2026) - You have a tight monthly budget with little buffer - You are taking a large loan (more exposure to rate risk)
What Happens When SORA Changes?
SORA-pegged mortgages typically reprice quarterly — your new rate takes effect from the beginning of each quarter based on the average SORA over the previous 3 months.
You will receive a notice from your bank when your rate changes. Your monthly instalment will be recalculated automatically.
Check Your TDSR at Different Rate Scenarios
Before taking a SORA loan, stress-test your TDSR at rates 1-2% higher:
- Use our TDSR calculator to check if you can still afford repayments if SORA rises
- Most banks apply a stress test at +2% above the current rate when assessing loan eligibility
Repricing from SORA to Fixed (or Vice Versa)
You can switch between SORA and fixed rate when your lock-in ends. See our guide on repricing vs refinancing for a full comparison of costs and timing.
Frequently Asked Questions
How often is SORA published?
MAS publishes the daily SORA rate every business day by 9am Singapore time. The 1-month, 3-month, and 6-month compounded averages are also published on the MAS website.
Will SORA rates fall in 2026?
Most bank economists expect 3M SORA to gradually decline to around 2.80-3.00% by end-2026, driven by US Federal Reserve rate cuts and cooling inflation. However, forecasts are uncertain.
What was SIBOR and why was it replaced?
SIBOR was a forward-looking benchmark based on bank submissions — prone to manipulation (as seen in the global LIBOR scandal). SORA is transaction-based and backward-looking, making it more reliable and transparent.
Calculate Your SORA Mortgage
Use our mortgage calculator Singapore to model your monthly repayments at current SORA rates (4.02-4.10%) versus fixed rates (3.08-3.25%). The full amortisation schedule helps you plan your finances over the entire loan tenure.