Discover the key differences between SOR, SIBOR, and SORA, the interest rate benchmarks used in Singapore.
SOR rate at which banks offer to swap fixed-rate interest payments for floating-rate interest payments, while SIBOR sets the interest rate on various loans, SORA is a new benchmark based on overnight interbank transactions.
Learn how these benchmarks impact borrowers, lenders, and investors, and the benefits of the transition to SORA.
Key Takeaways
| Topic | Key Takeaway |
|---|---|
| SOR, SIBOR, and SORA | SOR is a swap offer rate, SIBOR is the Singapore interbank offered rate, and SORA is the Singapore overnight rate average. They differ in calculation methodology and the transactions they are based on. |
| Calculation of SOR and SIBOR | SOR is calculated as a volume-weighted average of actual transactions in the USD and SGD interbank markets. SIBOR is computed based on a volume-weighted average rate of borrowing transactions in the SGD cash market. |
| 3-month Compounded SORA | 3-month Compounded SORA is the compounded average rate of borrowing for a tenor of three months. |
| Other reference rates | Other reference rates include LIBOR and USD LIBOR, which are being phased out due to concerns over their reliability. |
| Implications of transition to SORA | The transition from SOR and SIBOR to SORA affects loan packages, refinancing rates, and pricing of financial instruments. |
| Benefits of SORA | SORA is considered more transparent, reliable, and closely aligned with overnight funding costs. |
| Use of interest rate benchmarks | Financial institutions use benchmarks as reference rates for pricing loans and managing interest rate risk. |
| Refinancing and interest rate benchmarks | Refinancing allows borrowers to replace existing loans with better terms based on benchmark rates. |
| Different benchmarks and borrowing costs | The benchmark rate chosen can significantly impact borrowing costs. |
| Role of the Association of Banks in Singapore | The Association of Banks in Singapore conducts surveys to determine benchmark rates. |
| Role of the Monetary Authority of Singapore | MAS oversees benchmark rates, sets guidelines for their calculation, and ensures a smooth transition to new rates. |
| Adjustment Spread (Retail) | The Adjustment Spread (Retail) is the difference between the loan rate and the benchmark rate, affecting borrowing costs. |
| Considerations when choosing a benchmark | Market participants should consider the reliability, transparency, and suitability of the benchmark rate. |
| Discontinuation of SOR and its impact | The discontinuation of SOR affects loans, products, and transactions referencing SOR, requiring a switch to alternative rates. |
| Volume-Weighted Average Rate (VWAR) | VWAR is a transaction-based benchmark for the overnight interbank market, influencing the calculation of SORA. |
| Conditions for SORA as a reference rate | SORA must be reliable, representative, and recognized in financial markets, with a transparent calculation methodology. |
| Calculation of SORA and consideration of costs | SORA is based on actual transactions, providing a more reliable measure of market conditions and considering borrowing costs. |
| Market participants using LIBOR | LIBOR is used by banks, corporations, asset managers, and hedge funds as a widely accepted benchmark rate. |
| Conversion of 3-month Compounded SORA | The 3-month Compounded SORA is converted to an adjustment spread, aiding in loan refinancing and determining revised interest rates. |
| Calculation differences between SIBOR and SORA | SIBOR is forward-looking and based on bank submissions, while SORA is backward-looking and based on actual transactions. |
| Borrower benefits in loan refinancing | Favorable interest rates and forward-looking term rates allow borrowers to save and plan their finances during refinancing. |
| Role of key interest rate benchmark | The key interest rate benchmark affects loan rates offered by financial institutions, impacting the cost of funding for banks. |
What is the difference between SOR, SIBOR, and SORA?
How are SOR and SIBOR calculated?
SOR, or Swap Offer Rate, is the rate at which banks offer to swap fixed-rate interest payments for floating-rate interest payments.
It is an interbank-offered rate that is used as a reference rate for SGD and USD interest rate swaps in the cash market.
SOR is calculated as a volume-weighted average of actual transactions that take place in the USD and SGD interbank markets.
SIBOR, or Singapore Interbank Offered Rate, is a key benchmark used in Singapore to set the interest rate on various loans, including property loans.
SIBOR is the rate at which banks offer to lend unsecured funds to each other.
It is computed based on a volume-weighted average rate of borrowing transactions taking place in the SGD cash market in Singapore.
Unlike SOR, SIBOR is defined as the synthetic rate for deposits in SGD.
What is a 3-month Compounded SORA?
Compounded SORA, or Singapore Overnight Rate Average, is a new interest rate benchmark introduced by MAS to replace SOR and SIBOR by the end of 2021.
This rate is based on transactions in Singapore’s overnight interbank funding market and is computed as a volume-weighted average of transactions in the unsecured overnight interbank market.
3-month compounded SORA is the compounded average rate of borrowing for a tenor of three months.
What are the other reference rates?
Other reference rates include LIBOR and USD LIBOR, which are interest-rate benchmarks used in the foreign exchange market.
However, these rates are being phased out and are being replaced by new benchmark rates due to concerns over their reliability.
Why is it important to understand interest rate benchmarks?
What are the implications of the transition from
SOR and SIBOR to SORA?
The transition from SOR and SIBOR to SORA is significant for borrowers, lenders, and investors.
With the phasing out of SOR and SIBOR, it is crucial to understand the implications of the new benchmark rate.
The transition will involve changes to loan packages, refinancing rates, and pricing of financial instruments.
What are the benefits of the new benchmark?
The new benchmark rate, SORA, is considered to be a more transparent and reliable benchmark than SIBOR and SOR.
It is also more closely aligned with overnight funding costs and reflects the true cost of borrowing in the Singapore interbank market.
This is because SORA is based on actual transactions in the cash market, whereas SIBOR is computed based on a survey of participating banks.
How do financial institutions use interest rate
benchmarks?
Financial institutions use interest rate benchmarks as a reference rate for pricing loans, bonds, and other financial instruments.
They may also use these rates for managing interest rate risk, such as through the use of interest rate swaps.
By understanding interest rate benchmarks, investors and borrowers can make informed decisions about borrowing and investing.
How do loan packages and refinancing relate to interest rate benchmarks?
What is the significance of refinancing in the context of
interest rate benchmarks?
Refinancing refers to the act of replacing an existing loan with a new loan that has better terms, such as a lower interest rate or longer repayment period.
Interest rate benchmarks play a crucial role in refinancing, as borrowers may choose to refinance to take advantage of lower interest rates offered by a different benchmark rate.
How do different benchmarks affect loan packages and
borrowing costs?
The benchmark rate used for a loan package can have a significant impact on borrowing costs.
For example, SIBOR and SORA are floating rates, which means that the interest rate on the loan will vary depending on changes in the benchmark rate.
Borrowers who choose a 3-month SOR rate will see their interest rate fluctuate based on 3-month SOR movements in the market.
What role does the Association of Banks in Singapore play
in setting benchmark rates?
The Association of Banks in Singapore plays a role in setting benchmark rates by conducting surveys of participating banks to determine the rates.
This methodology has been criticized as it is not based on actual transactions in the market.
With the introduction of SORA, there is a move towards using actual market transactions to calculate benchmark rates.
What is the role of Singapore’s Monetary Authority in rate benchmarks?
How does the MAS oversee the benchmark rates?
The Monetary Authority of Singapore oversees benchmark rates by setting out guidelines for their calculation and ensuring that they are reliable and transparent.
The MAS also oversees the transition to the new benchmark rates, including working with financial institutions to ensure a smooth transition.
What is the Adjustment Spread (Retail), and how does it
relate to interest rate benchmarks?
The Adjustment Spread (Retail) is the difference between the loan rate (fixed or floating) and the benchmark rate.
It is set by financial institutions and may vary depending on the risk profile of the borrower.
The Adjustment Spread (Retail) plays a crucial role in determining the overall borrowing cost for a loan and can have a significant impact on monthly repayments.
What are the considerations for market participants when
choosing a benchmark rate?
Market participants should consider the reliability, transparency, and suitability of the benchmark rate when choosing a benchmark rate.
They should also consider the risk profile of the borrower and the impact that fluctuating interest rates may have on monthly repayments.
What are the key differences between SOR, SIBOR, and SORA?
How are the rates calculated?
SOR and SIBOR are calculated based on survey methodology and include contributions from participating banks.
SORA, on the other hand, is based on actual transactions in the Singapore interbank market.
What are the borrowing and lending differences for each
benchmark?
SOR is primarily used for interest rate swaps in the USD and SGD cash markets.
SIBOR is used to set the interest rate on various loans, including property loans.
SORA is a new benchmark that is intended to replace SOR and SIBOR.
What are the implications for borrowers depending on the
benchmark rate chosen?
Borrowers may choose a benchmark rate based on their risk profile and their expectations of interest rate movements.
Floating rates, such as SIBOR and SORA, may be more appropriate for borrowers who expect interest rates to fall.
Fixed rates, such as SOR, may be more appropriate for borrowers who want greater certainty in their monthly repayments.
Understanding interest rate benchmarks is crucial for borrowers, lenders, and investors.
As Singapore moves towards new benchmark rates, it is important to understand the implications of these benchmarks for loan packages, refinancing rates, and the pricing of financial instruments.
By staying informed about benchmark rates and their impact, market participants can make informed decisions about borrowing and investment.
Analyzing the Impact of the Discontinuation of SOR after 31st December
What is the difference between SOR and SIBOR?
SOR is a Reference Rate 1-month SOR that is based on the volume-weighted average borrowing rate of the first five contributor banks in Singapore.
It is synthetically created by using forward foreign exchange rates and the overnight borrowing rate.
Unlike SIBOR, SOR has a lower trading volume and liquidity, which makes it more vulnerable to market volatility.
SIBOR, on the other hand, is the interest rate benchmark for Singapore dollar loans.
It is the rate at which one bank can borrow Singapore dollars from another bank.
SIBOR has tenors ranging from overnight to 12 months and is based on the submissions of 20 contributor banks.
SIBOR has been used as a floating rate property loan based on either the prevailing SIBOR rate or a board rate or fixed deposit rate.
What are the loan packages that will be affected by the
discontinuation of SOR?
The discontinuation of SOR will have an impact on all loans, products, and transactions that reference SOR, including syndicated loans, derivatives, and other financial products.
Borrowers with loan packages that are pegged to SOR will need to switch to alternative benchmark rates.
What is the Volume-Weighted Average Rate (VWAR) and
how does it affect SOR?
The Volume-Weighted Average Rate (VWAR) is the transaction-based benchmark for the overnight interbank market in Singapore, from which SORA is computed.
SORA is derived from backward-looking overnight rates, which are calculated as the volume-weighted average of all overnight interbank transactions in Singapore, each day.
VWAR has a direct impact on the calculation of SORA, and it is based on actual transactions, which makes it a more reliable measure of market conditions than SOR.
How SORA Rate is Calculated: Understanding the Computation Methodology
What are the conditions for SORA to be used as a reference
rate in financial products?
SORA can be used as a reference rate in financial products only if it meets certain conditions, including being reliable, representative, and widely recognized in the financial markets.
SORA must have a robust and transparent calculation methodology, and it must be based on actual transactions in the Singapore overnight interbank funding market.
How are board rates and market conditions taken into
account in the calculation of SORA?
The calculation of SORA takes into account market conditions and board rates.
SORA is based on backward-looking overnight rates, which are calculated as the volume-weighted average of all overnight interbank transactions in Singapore, each day.
Board rates, on the other hand, are fixed deposit rates that are set by banks, based on their assessment of market conditions.
What is the basis of the SORA calculation and how are
costs considered in the process?
SORA is computed based on the volume-weighted average rate of all overnight interbank transactions in Singapore.
This calculation methodology provides a transparent and reliable measure of market conditions.
The costs associated with borrowing are also considered in the SORA calculation, which makes it an accurate representation of the cost of funding for banks in Singapore.
Explaining LIBOR and its Relationship to Singapore’s Interest Rate Benchmarks
What are the market participants that use the LIBOR
reference rate?
LIBOR, or the London Interbank Offered Rate, is a benchmark interest rate that is widely used in financial markets around the world.
It is the rate at which banks can borrow funds from other banks in the London wholesale market.
Market participants that use LIBOR include banks, corporations, asset managers, and hedge funds.
How is the 3-month Compounded SORA converted and used
as an adjustment spread in retail loan products?
The 3-month Compounded SORA is converted to an adjustment spread by taking the difference between the 3-month SORA rate and the applicable margin or interest rate.
This adjustment spread can then be used to calculate the revised interest rate on a borrower’s loan.
This adjustment spread is more forward-looking than SOR and is based on actual transactions in the Singapore overnight interbank funding market, which makes it a more reliable indicator of market conditions.
What are the differences in calculation methodology
between the Singapore Interbank Offered Rate (SIBOR)
and SORA?
SIBOR and SORA have different calculation methodologies, which makes them suitable for different types of financial products.
SIBOR is based on the submissions of 20 contributor banks, which makes it a forward-looking benchmark.
The banks submit rates at which they would be willing to lend Singapore dollars to another bank, thus creating a market-driven rate.
SORA, on the other hand, is a backwards-looking overnight rate that is based on actual transactions in the interbank market.
It provides a more accurate representation of market conditions in the Singapore overnight interbank funding market.
Managing Property Loans: The Role of Interest Rate Benchmarks and Refinancing Options
How do borrowers benefit from favorable interest rates
and forward-looking term rates when refinancing their
loans?
Borrowers can benefit from favorable interest rates and forward-looking term rates when refinancing their loans.
When interest rates are favorable, borrowers can save on their monthly repayments.
Forward-looking term rates provide borrowers with a more accurate measure of their expected monthly repayments, which allows them to plan their finances better.
What is the key interest rate benchmark and how does it
affect the rate package offered by financial institutions?
The key interest rate benchmark is the rate benchmark for Singapore dollar loans.
It is the rate at which banks can borrow funds from other banks in Singapore.
The key interest rate benchmark affects the rate package offered by financial institutions because it determines the cost of funding for banks.
Banks use this rate to price their loan products, including mortgages, personal loans, and credit cards.
What happens to the rate fluctuations of loan packages
when changing from SOR to SORA?
The rate fluctuations of loan packages may change when changing from SOR to SORA.
This is because SORA is a backward-looking overnight rate that is based on actual transactions in the Singapore overnight interbank funding market, while SOR is a synthetic rate that is based on forward foreign exchange rates and the overnight borrowing rate.
SORA is more stable and less vulnerable to market volatility than SOR, which makes it a better benchmark for loan products.
Navigating the Transition: Steps for Borrowers Switching from SIBOR and SOR to SORA
What is the SORA Conversion Package offered by financial
institutions?
The SORA Conversion Package is a loan conversion package that is offered by financial institutions to help borrowers switch from SIBOR and SOR to SORA.
The package includes a standardized Adjustment Spread that is used to calculate the revised interest rate on a borrower’s loan, as well as information on the applicable adjustment and the costs involved in the conversion process.
This package is designed to make the transition from SIBOR and SOR to SORA as smooth as possible for borrowers.
What is the applicable adjustment and standardized
Adjustment Spread that are used in loan conversion?
The applicable adjustment is the difference between the existing interest rate and the revised interest rate based on the new benchmark rate.
The standardized Adjustment Spread is a predetermined number that is used in loan conversion to calculate the adjustment needed to align the borrower’s rate to the new benchmark rate.
The adjustment spread is reviewed periodically to ensure that it remains fair and transparent.
What are some financial institutions, such as OCBC, doing
to help their customers transition to SORA?
Financial institutions like OCBC are offering transition loans that allow borrowers to switch to SORA without incurring additional fees.
These loans offer a lower interest rate or an all-in rate that includes the conversion fee.
The bank is also providing educational resources to help borrowers understand the transition process and the benefits of switching to SORA.
Exploring the Pros and Cons of Fixed-Rate and Floating-Rate Property Loan Packages
Understanding the differences between fixed and floating
rates
Fixed-rate loans offer certainty and stability, making it easier for borrowers to plan their finances.
Interest rates remain constant, regardless of the market conditions.
This is beneficial for borrowers who prefer predictability and stability in their financial situation.
On the other hand, floating-rate loans are flexible and allow borrowers to take advantage of the fluctuations in the interbank cash market.
The interest rate for floating-rate loans is typically pegged to a benchmark rate such as the Singapore Interbank Offered Rate (SIBOR) or Swap Offer Rate (SOR), which tracks the cost of interbank borrowing.
The interest rate on a floating-rate loan is adjusted every few months, based on changes in the benchmark rate.
This can be beneficial for borrowers who are able to adapt to fluctuations in interest rates.
Factors to consider when choosing between fixed and
floating interest rates
Borrowers should consider their financial situation and long-term goals when deciding between fixed and floating interest rates.
A fixed-rate loan may be suitable for borrowers who require stability in their finances, while a floating-rate loan may be more beneficial for borrowers who have cash flow flexibility and are comfortable taking risks.
It is also essential to consider the original loan margin, especially for floating-rate loans.
The original loan margin is the percentage that the lender adds to the benchmark rate to determine the interest rate on the loan.
Higher loan margins result in higher interest rates on loans.
Borrowers should compare loan margins offered by different lenders before making their purchase decisions.
Examples of fixed and floating loan packages offered by
major banks
Many Singapore banks offer loan packages that are either SIBOR-based or SOR-based.
A panel of contributor banks provides SIBOR and SOR rates, which are then used to calculate the interest rate on the loan.
Some banks also offer SORA-pegged home loans, which are an alternative loan package.
An alternative package may be more beneficial for borrowers with corporate loans or housing loans.
These packages may offer lower interest rates or better terms and conditions than SIBOR-pegged loans.
Borrowers should compare different loan packages and choose the one that best suits their financial situation.
Implications of SORA Adoption on the Singapore Foreign Exchange Market
What is SORA and how does it differ from SIBOR and SOR?
SORA is a forward-looking rate that can function as a more transparent interest rate benchmark compared to SIBOR and SOR.
SIBOR is what a bank will charge another bank to borrow Singapore dollars for a given period, usually three months.
SOR measures the cost of borrowing in SGD synthetically by borrowing USD and converting them to SGD.
Unlike SIBOR and SOR, which are based on the average difference between the interest rates of banks, SORA is based on market transactions.
SORA is calculated based on the average overnight borrowing transactions in the unsecured overnight interbank SGD cash market.
Understanding the impact of SORA adoption on the foreign
exchange market
The adoption of SORA as the primary rate benchmark is expected to have an impact on the Singapore foreign exchange market.
SORA is a more transparent and reliable benchmark rate than SIBOR and SOR, which could potentially increase demand for SGD-denominated derivatives contracts.
However, SORA adoption may also pose risks in terms of market liquidity and volatility due to the limited availability of transaction data.
Careful monitoring and analysis of the market will be necessary to mitigate these risks.
Potential benefits and risks of adopting SORA as a
benchmark rate
Adopting a transparent and reliable benchmark rate such as SORA could promote market efficiency and fairness and promote better pricing of financial products.
It could lead to a more stable financial system and risk management.
However, there are also potential risks associated with SORA adoption.
The pricing of derivatives contracts and other financial products based on SORA may be volatile in the short term due to the lack of historical data.
It is also unclear how market participants will react to the new benchmark rate, which could lead to market disruption.
Understanding the Role of Industry Steering Committee in the Transition Process
What is the Industry Steering Committee and what is its
role in the SOR and SIBOR transition?
The Industry Steering Committee was established to lead and oversee the transition from SIBOR and SOR to SORA.
The committee comprises industry stakeholders, including banks, industry associations, the Monetary Authority of Singapore, and relevant government agencies.
The committee’s role is to facilitate market adoption of SORA as a benchmark rate and ensure a smooth transition for market participants.
It also aims to promote transparency and manage the risks associated with the transition process.
Updates on the progress of the transition and the timeline
for implementation
The transition from SIBOR and SOR to SORA is ongoing, with the target date for the discontinuation of SOR being 31 December 2021 and for SIBOR being 31 March 2022.
Various measures have been implemented to support the transition, including the provision of industry guidance and templates for contractual amendments.
Regular updates and consultations with market participants are also conducted to ensure a smooth transition.
Actions that borrowers and lenders can take to prepare for
the transition to SORA
Borrowers and lenders can take several actions to prepare for the transition to SORA.
For example, borrowers could review their loan agreements and assess the potential impact of the transition on their loan terms and conditions.
Lenders could proactively communicate with their borrowers and provide information on alternative loan packages and options.
The Impact of SORA on Financial Markets: Implications for Market Participants
Overview of the potential impact of SORA on the financial
markets
The adoption of SORA as a benchmark rate could have significant implications for market participants, including banks, investors, and borrowers.
It could lead to the development of new financial products and improved risk management.
At the same time, market participants could face challenges in transitioning from SIBOR and SOR to SORA, including the need for system upgrades and changes in valuation methodologies.
Implications for market participants, including banks,
investors, and borrowers
Banks could face challenges in pricing their products based on a new benchmark rate, and may need to adjust their operations and risk management strategies.
Investors may need to adjust their investment strategies and risk management practices as well.
Borrowers could face adjustment risks and need to consider the potential impact of SORA adoption on their loan terms and conditions.
How SORA could affect the pricing of derivatives contracts
and other financial products
Derivatives contracts and other financial products based on SORA could potentially offer more transparency and a more reliable benchmark rate compared to those based on SIBOR and SOR.
However, they may also face challenges in terms of pricing and valuation, especially in the short term as the market transitions to the new benchmark rate.
Market participants will need to monitor the impact of SORA adoption on these financial products and adjust their strategies accordingly.
Exploring the Future Outlook: Predictions and Expectations for SORA as the Primary Rate Benchmark
Expert opinions and predictions for the future of SORA as
the primary rate benchmark
Many experts predict that SORA adoption will help strengthen Singapore’s financial system and promote market efficiency and transparency.
However, there are still uncertainties regarding its performance as the primary rate benchmark, especially in the short term.
Analysis of the historical and expected performance of
SORA relative to SIBOR and SOR
Historical data shows that SORA has been relatively stable compared to SIBOR and SOR.
It has also shown lower volatility, which could be beneficial for market participants.
However, the limited availability of transaction data continues to be a risk factor for the adoption of SORA.
Factors that could impact the adoption and success of
SORA as a transparent and reliable benchmark rate
The successful adoption of SORA as a benchmark rate will depend on several factors, including the availability of transaction data, market acceptance, and the effectiveness of the transition process.
It will also depend on the ability of market participants to adjust their strategies and operations to accommodate the new benchmark rate.
Conclusion
In conclusion, understanding interest rate benchmarks is crucial for borrowers, lenders, and investors.
As Singapore transitions from SOR and SIBOR to SORA, it is important to grasp the implications of these benchmarks for loan packages, refinancing rates, and the pricing of financial instruments.
The new benchmark rate, SORA, offers transparency, reliability, and a closer alignment with overnight funding costs.
By staying informed about benchmark rates and their impact, market participants can make informed decisions about borrowing and investment.
To explore more about these topics and navigate the transition effectively, I encourage you to check out our other blog articles on interest rate benchmarks and refinancing options.
Financial institutions are offering transition packages and educational resources to help borrowers switch to SORA smoothly.
When choosing between fixed and floating interest rates, borrowers should consider factors such as stability, flexibility, and long-term goals.
Overall, staying informed about interest rate benchmarks and their impact empowers market participants to make informed decisions about borrowing and investment.
To explore further, be sure to check out our other blog articles on related topics.
Frequently Asked Questions
What is SOR rate?
SOR rates are industry-wide benchmark interest rates that are computed based on the interbank lending rate and the USD LIBOR in its computation.
These rates are used to determine the effective rate of fixed-rate or floating-rate packages for customers with board rates, dollar interest rates, and other dollar-interest-rate products.
When will SOR rates be discontinued?
SOR rates will be discontinued after 31 December as it is being replaced by the Singapore Overnight Rate Average (SORA), which is based on transaction-level data and is a more reliable and stable benchmark.
What is SORA?
SORA stands for Singapore Overnight Rate Average, which is a new benchmark interest rate that will be replacing SOR rates.
SORA is based on transaction-level data from the interbank money market rates and is considered a more reliable and stable benchmark.
What are the fallback replacement rates for SOR rates?
The fallback replacement rates for SOR rates are the 3-month SIBOR or Singapore Interbank Offered Rate, which is the rate at which banks in Singapore lend to each other in the interbank market, and SORA.
What is a floor rate for SOR rates?
A floor rate for SOR rates is the minimum interest rate that a borrower will be charged.
The floor rate for SOR rates is usually set based on the top and bottom quartiles of historical rates.
What is the SORA Conversion Package under Automatic Conversion?
The SORA Conversion Package under Automatic Conversion is a package offered by banks to customers with existing loans based on SOR rates.
It allows for the conversion of SOR-based loans to loans based on SORA at no additional cost, making the transition to the new benchmark interest rate seamless and hassle-free.
What should I do if my loan is based on SOR rates?
If your loan is based on SOR rates, you should consider switching to a SORA package or refinancing your property loan before SOR rates are discontinued after 31 December.
This will ensure that you are not affected by the transition to the new benchmark interest rate.
Will SORA affect the interest rate on my fixed-rate property loan?
No, SORA will not affect the interest rate on your fixed-rate property loan.
SORA will only affect the interest rate on loans that are based on SOR rates.
How will SORA affect dollar loans and other financial products?
SORA will affect dollar loans and other financial products that are currently based on SOR rates.
These products will need to be transitioned to SORA, which may affect the interest rates and other terms and conditions of the loans and products.
