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What's the SIBOR and SOR historical data?
The Singapore Interbank Offered Rate (SIBOR) and Swap Offer Rate (SOR) have always been the key reference rates for home loan packages in Singapore. Determined by how banks borrow from each other, SIBOR is considered as a much more stable option. On the other hand, SOR, another interbank lending rate, is based on the exchange rate between the US dollar and the Singapore dollar. Since the volatility index of the US market is higher, SOR is deemed to be more volatile. Given the market uncertainties, there have been periods when SIBOR was lower than SOR, and when SOR took over SIBOR.
For a quick overview of how SIBOR and SOR compare to each other, use the chart below.
Given the impending discontinuation of LIBOR, the Association of Banks in Singapore (ABS) has announced that SOR will transition to an alternative benchmark rate called the Singapore Overnight Average Rate (SORA) within the next two years.
SOR-pegged home loan rates may change to SORA. To find out how this will affect your current home loan or upcoming refinancing, feel free to speak with one of our mortgage specialists.
SIBOR Rate Packages
These are interest rates that fluctuate based on interbank interest rates.
Interest Rate Year 1
from
Board Rate Packages
These are interest rates that change based on the bank’s internal decisions.
Interest Rate Year 1
from
Fixed Deposit Rate Packages
These are interest rates that fluctuate based on the bank's fixed deposit rates.
Interest Rate Year 1
from
Our mortgage specialists can help you save time and money with their comprehensive knowledge on mortgage. Just book a call or send a WhatsApp message to make your home loan journey easier.
Our mortgage specialists can help you save time and money with their comprehensive knowledge on mortgage. Just book a call or send a WhatsApp message to make your home loan journey easier.
SIBOR and SOR are benchmark rates for residential and commercial property loans in Singapore. Due to their open and transparent concept, these two reference rates are the most popular among Singaporean home buyers. Unlike other types of interest rates, SIBOR and SOR are the same across all banks. While the duration of SIBOR- and SOR-pegged home loan packages is typically 1, 3, 6, or 12 months, most banks only offer 1- or 3-month SIBOR/SOR.
It’s important to note that SIBOR and SOR reference rates are affected by different factors. As you can see from the historical data, ultimately, these two rates trend in the same direction. When SOR rises, SIBOR follows; and when SOR takes a dip, so will SIBOR. However, this isn’t always the case. There have been periods when SOR peaks drastically while SIBOR moves up or down in small increments.
1-mth SIBOR | 0.281% |
3-mth SIBOR | 0.437% |
6-mth SIBOR | 0.593% |
12-mth SIBOR | 0.000% |
1-mth SOR | 0.185% |
3-mth SOR | 0.242% |
6-mth SOR | 0.277% |
* The SIBOR/SOR rate for the month is based on the rate as of the first business day of the month.
Understanding the difference between SIBOR and SOR is relatively easy. Basically, SIBOR is the average rate at which Singapore banks loan from one another. SOR, on the other hand, is another interbank lending rate that’s based on the cost of swapping USD and SGD. What this means is that SOR can vary drastically, depending on how the US economy is doing.
Most consumers who take up SOR packages are consumers with higher risk profiles, and wish to take advantage of the SOR’s ability to drop (albeit unpredictable) to levels way below the SIBOR while also being able to confidently ride through the period when it’s above the SIBOR.
Sometimes referred to as variable or adjustable rate, floating rate housing loans change depending on how often you want your interest rate to be refreshed, as well as your risk appetite. Here are the different types of floating rates that you can compare.
First is the SIBOR. This type of rate changes everyday, and you can choose to have your interest rate refreshed on a monthly or quarterly basis.
The next type is board rate. Since the benchmark used for this rate is internally determined by banks, it’s less transparent than SIBOR and usually changes on a quarterly basis.
Fixed deposit home rates (FDHR) is the other floating-type home loan that’s linked to a bank’s fixed deposit account interest rate. So, if their interest rates go up, so do the home loan interest rates. You can say that it’s similar to board rate, but it’s published and therefore seen as slightly more transparent than board rate.
Lastly, SOR, another type of floating rate which will eventually transition to SORA in the coming years, is based on the foreign exchange rate with the US dollar.