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Singapore·Learn·SORA: what it is, who publishes it, and how it prices home loans
Explainer

SORA: what it is, who publishes it, and how it prices home loans

SORA is the Singapore Overnight Rate Average, derived from actual overnight interbank transactions. It is a reference rate that home loans add a spread to.

Source: MAS, Singapore Overnight Rate AverageChecked ·1 min read
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What SORA measures
Volume-weighted average rate of unsecured overnight interbank SGD transactions, 8am to 6.15pm Singapore timeMAS: SORA definition
Administrator
Monetary Authority of Singapore (MAS)MAS: SORA administration
Publication time
9am the next business day, on the MAS websiteMAS: SORA publication
Replaced
SGD Swap Offer Rate (SOR), which was discontinued immediately after 30 June 2023ABS: benchmark discontinuation
Run the numbers
SORA compound interest scenario
Model interest on a principal held at a SORA-linked rate for an entered number of days, with an entered spread. A scenario is not a loan offer.

What SORA is

SORA, the Singapore Overnight Rate Average, is defined as the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market between 8am and 6.15pm, as published by MAS, Singapore Overnight Rate Average. It is derived from actual transactions reported by banks. MAS, Singapore Overnight Rate Average (opens in a new tab).

SORA is a benchmark published by MAS, Singapore Overnight Rate Average (opens in a new tab).

How MAS computes and publishes SORA

On each business day, reporting banks provide transaction data for all eligible overnight unsecured interbank SGD trades executed between 8am and 6.15pm. MAS conducts data validation and publishes SORA on the MAS website the next business day at 9am, as described in MAS, Singapore Overnight Rate Average. MAS conducts data validation and publishes SORA (opens in a new tab).

SOR (SGD Swap Offer Rate), which relied on USD LIBOR in its computation, was discontinued immediately after 30 June 2023. ABS: benchmark discontinuation (opens in a new tab).

Financial institutions can no longer reference SOR for charging interest on loans. The industry transitioned to overnight alternative reference rates, including SORA for SGD contracts, or relevant contractual fallback rates. MAS: SOR transition (opens in a new tab).

Keep the benchmark separate from the product rate

This guide explains SORA as a published benchmark. It does not describe or recommend any loan product.

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