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Guide: Optimize Your Home Loan by Transitioning to SORA Before June 2024

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Select the Right Home Loan Package for Your Needs by April 30, 2024

Homeowners with loans tied to the Singapore Interbank Offered Rate SIBOR are encouraged to consult their banks before June 1, 2024. As of December 31, 2022, approximately half of the 87,000 SIBOR-based home loans have been converted by homeowners as of March 31, 2024.

Early communication with your bank will provide you more time to consider alternative options, which could include one of their current packages or the Singapore Overnight Rate Average SORA Conversion Package SCP. Should you fl to choose an alternative plan before June 1, 2024, your existing SIBOR-based loan will automatically transition to SCP by your bank in June.

Understanding SORA Singapore Overnight Rate Average

The SORA is a rate designed as an alternative benchmark for interbank ling and borrowing rates like the SIBOR. As financial markets evolve, using this new benchmark can help mitigate risks associated with interest rate fluctuations.

What's a SIBOR-based Home Loan?

A home loan that uses SIBOR as its reference rate adjusts based on the average rate at which Singapore banks l to each other for overnight transactions.

Options for Homeowners

  1. Retn Existing Loan: You can continue with your current SIBOR-based loan if it fits your financial plan.

  2. SCP Offer: Consider transitioning to SCP, provided by your bank as a conversion package.

  3. Alternative Bank Packages: Explore different offerings from other banks that may suit your needs better.

Decision-Making

Selecting the best option requires considering factors such as interest rate stability, long-term trs in financial markets, and alignment with your personal or business financial goals.

Fees for Transition?

Consultation fees may apply deping on specific bank policies. It's recommed to check directly with your bank for detls.

Flexibility of SCP

Once converted to SCP, you might inquire about the possibility of switching back to another loan package within a defined timeframe without penalties.


Additional Resources:

For comprehensive information and updates, visit our website section dedicated to the transition roadmap, announcements, publications, events, and FAQs related to SIBOR and SORA rates.


Contact Information

12-08, MAS Building

10 Shenton Way, Singapore 079117

Tel: +65 6224 4300

Fax: +65 6224 1785

Eml: [email protected]


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SIBOR to SORA Loan Conversion Guide Singapore Home Loans Interest Rate Options SIBOR vs. SORA: Financial Transition Advice Navigating Singapores Loan Benchmark Rates Home Loan Package Selection Process 2024 Preparation for SIBOR to SORA Shift