What is SORA?
SORA (Singapore Overnight Rate Average) is the interest rate benchmark published daily by the Monetary Authority of Singapore (MAS). It reflects the volume-weighted average rate of borrowing transactions in Singapore's overnight interbank SGD cash market.
SORA replaced SIBOR (Singapore Interbank Offered Rate) as the primary floating rate benchmark for Singapore mortgages starting in 2024. All new floating-rate home loans are now SORA-based.
Model your mortgage payments at different SORA levels with our free mortgage calculator Singapore.
Current SORA Rate in Singapore (May 2026)
| SORA Tenor | Current Rate (May 2026) |
|---|---|
| 1-Month Compounded SORA | 2.78% p.a. |
| 3-Month Compounded SORA | 2.85% p.a. |
*SORA is published daily on the MAS website at mas.gov.sg. Check for the latest rate before making any financial decisions.*
How Banks Use SORA for Your Mortgage
Banks do not lend to you at SORA directly. They add a spread (also called margin) on top of SORA:
Your Mortgage Rate = SORA (1M or 3M) + Bank Spread
Current SORA-Linked Mortgage Rates (May 2026)
| Bank | Package | SORA + Spread | Effective Rate | Lock-In |
|---|---|---|---|---|
| DBS | DBS Home Loan | 1M SORA + 0.85% | ~3.63% | None |
| OCBC | OCBC Mortgage | 3M SORA + 0.80% | ~3.65% | None |
| UOB | UOB HomeLoan | 1M SORA + 0.90% | ~3.68% | 2 years |
| Maybank | Maybank Mortgage | 3M SORA + 0.85% | ~3.70% | None |
| Citi | Citi SORA | 1M SORA + 0.88% | ~3.66% | None |
*Bank spreads are fixed in your loan agreement. SORA itself changes — your effective rate changes with it.*
1M SORA vs 3M SORA — Which Should You Choose?
| 1M Compounded SORA | 3M Compounded SORA | |
|---|---|---|
| Reset frequency | Monthly | Every 3 months |
| Currently lower? | Yes, slightly | No, slightly higher |
| Rate volatility | More frequent adjustments | Slower to change |
| Best for | Those who expect SORA to fall | Those who want less frequent resets |
For most borrowers in 2026, 1M SORA packages are marginally cheaper but involve more frequent payment changes. If you want your payment to change less often, 3M SORA provides slightly more stability.
How SORA Affects Your Monthly Mortgage Payment
Example: S$700,000 Loan, 25-Year Tenure
| SORA Rate | Bank Spread | Total Rate | Monthly Payment |
|---|---|---|---|
| 2.00% | + 0.85% | 2.85% | S$3,263 |
| 2.50% | + 0.85% | 3.35% | S$3,450 |
| 2.78% | + 0.85% | 3.63% | S$3,566 |
| 3.00% | + 0.85% | 3.85% | S$3,635 |
| 3.50% | + 0.85% | 4.35% | S$3,815 |
| 4.00% | + 0.85% | 4.85% | S$4,001 |
*A 1% rise in SORA increases monthly payment by approximately S$235–S$260 on a S$700,000 loan.*
SORA vs Fixed Rate — Which Is Better in 2026?
The Argument for SORA (Floating)
- SORA (2.78%) + spread (0.85%) = ~3.63% effective rate currently
- The best 2-year fixed rates are 2.90–2.95%
- Fixed is only marginally cheaper than SORA right now
- If SORA falls, SORA mortgages benefit immediately
- Most SORA packages have no lock-in period — maximum flexibility
- Market consensus is for SORA to ease to 2.2–2.5% by end-2026
The Argument for Fixed Rate
- Monthly payment certainty for 2–3 years — ideal for budget planning
- Protection if SORA rises unexpectedly
- 2-year fixed at 2.90% is meaningfully below current SORA-linked rate (3.63%)
- After the fixed period, you can reassess and refinance
2026 Recommendation
For new borrowers, a 2-year fixed rate is likely the better choice. The 2.90% fixed undercuts the current SORA rate, and you retain the option to reassess in 2028 when SORA trends may be clearer.
What Happens to Your SORA Mortgage When SORA Changes?
- MAS publishes 1M Compounded SORA daily
- Your bank calculates your rate: SORA + your spread
- Your new rate applies from the next month's payment
- You receive notification (usually by SMS or bank app) of your new rate
You will receive at least one month's notice before any rate change takes effect. Your spread never changes — it is fixed in your loan agreement.
SORA History — How Has It Moved?
| Year | 1M SORA (approx average) |
|---|---|
| 2021 | 0.12% |
| 2022 | 1.80% |
| 2023 | 3.70% |
| 2024 | 3.50% |
| 2025 | 3.10% |
| May 2026 | 2.78% |
SORA peaked in 2023 following aggressive US Fed rate hikes and has been gradually declining. The trajectory in 2026 is downward, though the pace of decline is uncertain.
How to Switch from Fixed to SORA (or Vice Versa)
Switching at Lock-In Expiry (Best Option)
- Contact your bank 2–3 months before lock-in ends
- Request SORA package options
- Compare with competitor rates
- Reprice (stay with bank, S$200–S$800 fee) or refinance (move to new bank)
Switching During Lock-In (Expensive)
Breaking your lock-in to switch costs 0.75–1.50% of your outstanding loan amount. On a S$600,000 loan, that is S$4,500–S$9,000. Only worth it if the rate saving over your remaining lock-in period exceeds the penalty.
SORA and the HDB Concessionary Loan — Are They Related?
No. The HDB Concessionary Loan is a fixed rate of 2.6% p.a. set by HDB policy — it is not linked to SORA or any market rate. Changes to SORA do not affect HDB loan borrowers.
Frequently Asked Questions
Where can I check the current SORA rate?
The 1-Month and 3-Month Compounded SORA rates are published daily on the MAS website (mas.gov.sg). Your bank's website also typically shows the current SORA rate used for your package.
How often does my SORA mortgage rate change?
For 1M SORA packages, the rate resets monthly. For 3M SORA packages, every three months. The reset date is typically tied to your loan disbursement date anniversary.
What was SORA at its peak and when?
SORA peaked at approximately 3.82% (1M compounded) in late 2023 as MAS followed global rate hikes. Since then, it has gradually declined and sits at approximately 2.78% as of May 2026.
Is SORA in Singapore the same as the US Fed Funds Rate?
No. SORA reflects Singapore's own overnight interbank market and is set independently by market forces, overseen by MAS. It is correlated with global rates (including the Fed Funds Rate) but is not the same.
If I'm on SORA and rates fall, does my payment automatically go down?
Yes. For SORA-linked mortgages, when SORA falls, your mortgage rate falls by the same amount, and your monthly payment decreases at the next reset date.
Calculate your mortgage repayment at current SORA levels using our mortgage calculator.
About this guide
Published by LoanCalculatorSingapore.com on . Rates and regulatory limits quoted here reflect publicly available information at the time of writing and change frequently — confirm current figures with the lender or the relevant Singapore authority before you act on them.
Official references: MAS, HDB, CPF Board, IRAS.
We are not a licensed financial adviser. This guide is general information, not personalised financial advice. See our full disclaimer.