Your existing SIBOR loan margin will remain unchanged.The SCP seeks to directly convert your existing SIBOR-based loan to a SORA-based loan. This is to allow time for an orderly transition out of SIBOR loans by banks and customers and to ensure that all outstanding SIBOR loans are converted before SIBOR is discontinued.īanks are offering customers with existing SIBOR loans a switch to the SORA Conversion Package at no additional fees and no additional lock-in period. If you do not switch out your SIBOR-based property loan to an alternative loan package by 30 April 2024, we will automatically convert it to the SCP at the historical median spread in June 2024, 6 months ahead of the discontinuation of SIBOR (i.e. Option 3: Wait for automatic conversion to the SCP in June 2024 at the historical median spread.Option 2: SORA Conversion Package (SCP) at the spot-spread.Option 1: Any prevailing property loan package offered by us.It is determined based on the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank Singapore dollar cash market in Singapore between 8am and 6.15pm.Ĭan I choose to retain my property loan referencing SIBOR, and not switch out of it?Īs SIBOR will be discontinued after 31 December 2024, you are strongly encouraged to contact us early to explore the available options:

SORA is a robust and transparent benchmark anchored on actual market transactions and underpinned by a deep and liquid overnight interbank funding market. The Compounded SORA rates are calculated as the compounded average of daily SORA readings over the relevant 1-month, 3-month or 6-month periods before each publication date, reducing the effects of rate volatility. It is published as a daily rate and a series of 1-month, 3-month and 6-month compounded rates on the MAS website at. SORA is calculated and administered by the Monetary Authority of Singapore (MAS). SORA has replaced the Singapore Interbank Offered Rate (SIBOR) and Swap Offer Rate (SOR) as the key interest rate benchmark for Singapore dollar (S$) interest rate contracts.

What is SORA (Singapore Overnight Rate Average)?

Ocbc fixed deposit rate april 2023