What Is Sibor And SOR?

What Is Sibor And SOR?

SIBOR and SORA are two key interest-rate benchmarks used in Singapore’s financial system. As of mid-2026, SIBOR is no longer quoted for new loans, but many existing mortgages still reference it. SORA, by contrast, is the Singapore Overnight Rate Average, a volume-weighted rate published daily by the Association of Banks in Singapore (ABS).

What’s Happening with SIBOR and SORA?

SIBOR got the boot for new lending on 31 December 2024 as part of global benchmark reforms. Existing loans still show SIBOR on statements, but new ones use SORA. SORA isn’t some guesswork—it’s built on actual overnight interbank transactions in Singapore dollars. SIBOR, on the other hand, was a rate banks submitted based on polls. (Not exactly transparent, was it?)

How Do I Switch from SIBOR to SORA?

Here’s the step-by-step process to avoid getting stuck with a higher rate:

1. Check your loan contract • Log into your bank’s portal → Loans → Product Details. • Look for “benchmark” or “reference rate.” If it says “SIBOR,” jot down the next refixing date (usually every 3 or 6 months).
2. Open a refinancing channel • In the same portal, click Refinance or Switch Package. • Pick a 3-month compounded SORA home loan. For example, UOB’s 3-M Compounded SORA + 1.40% p.a. (as of June 2026).
3. Submit the conversion request • Upload any documents they need (IC, latest payslip). • Confirm the switch 10–14 days before your next refixing date to dodge a rate hike.
4. Verify the change • Once approved, check your new repayment schedule. Your interest portion should drop by about 0.30–0.50% compared to the old SIBOR rate. SORA’s been lower since 2021, so this makes sense.

What If Switching Doesn’t Work?

• Ask for an internal transfer • Call your bank’s mortgage hotline (numbers are on your statement). Ask to move to the “SORA Conversion Promo” without refinancing elsewhere. Banks often waive legal fees if you stay put.
• Consider a small top-up • If your loan-to-value is above 50%, some banks will only approve a SORA switch if you add 5–10% principal. Say you’ve got a $600k loan—you might need an extra $30k to snag the lowest SORA margin.
• Use a mortgage broker • Brokers can shop around for live SORA packages at DBS, OCBC, and UOB. Their fee (usually 0.5% of loan value) often gets wiped out by a 0.10% lower margin.

How Can I Avoid Future SIBOR Headaches?

• Mark refixing dates on your calendar – Set a 60-day alert before each reset so you’ve got time to weigh your options.
• Set up rate alerts – In your banking app, turn on notifications for “SORA updates” or “Benchmark changes.”
• Keep a 12-month cash buffer – SORA can swing 0.20–0.30% in a year. Stash 12 months of repayments in a high-yield savings account (currently ~3.5% in Singapore as of June 2026) to soften any blows.

How Do I Check If My Loan Is Still on SIBOR?

If you’re scratching your head over your loan’s benchmark, call your bank’s customer service line. Quote your loan account number—they’ll confirm whether you’re stuck with a legacy SIBOR loan or already on SORA.