If you have a home loan that references the Singapore Interbank Offered Rate (SIBOR), you should speak to your bank early, before 30 April 2024, about switching to an alternative home loan package.

Of the 87,000 SIBOR-based home loans as of 31 December 2022, about half have been converted by homeowners by 31 March 2024.

Reaching out to your bank early will give you more time to decide on your options, whether it is one of the bank’s prevailing packages, or the SORA Conversion Package (SCP).

If you do not switch to an alternative home loan package of your choice by 30 April 2024, your SIBOR-based home loan will be automatically converted to the SCP by your bank in June 2024.

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.

Published by the Monetary Authority of Singapore (MAS) since 1 July 2005, SORA is a robust and transparent benchmark anchored on actual market transactions and underpinned by a deep and liquid overnight interbank funding market. 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 8.00am and 6.15pm.

SORA is published as a daily rate and a series of 1-month, 3-month and 6-month compounded rates on the MAS website. The Compounded SORA rates are calculated as the compounded average of daily SORA readings over the relevant 1-month, 3-months or 6-months periods before each publication date, reducing the effects of rate volatility.

A SIBOR-based home loan is one that has interest payments:

  • currently based on SIBOR rates (e.g. SIBOR + 0.50%); or

  • will be based on SIBOR rates after the current period (e.g. a fixed rate loan of 3.00% for 2 years, and SIBOR + 0.50% after the end of the fixed tenure)

If you are unsure whether your loan is a SIBOR-based home loan, please contact your bank to find out more.

SIBOR home loan borrowers have until 30 April 2024 to switch to a preferred alternative home loan package. As such, you are strongly encouraged to contact your bank early to explore your available options:

  • Option 1: Prevailing home loan package offered by your bank

  • Option 2: SORA Conversion Package (SCP) at the spot-spread

  • Option 3: Wait for automatic conversion to the SCP in June 2024 at the historical median spread

If you do not switch out your SIBOR-based home loan to an alternative loan package by 30 April 2024, your bank will automatically convert it to the SCP at the historical median spread in June 2024 (i.e. Option 3), approximately six months ahead of SIBOR discontinuation at end-2024.

The six-month period is to allow time for an orderly transition out of SIBOR loans by banks and customers, given the large number of outstanding SIBOR loan contracts, and to ensure that all outstanding SIBOR loans are converted before SIBOR is discontinued.

Banks are offering customers with existing SIBOR home loans a switch to the SCP at no additional fees and no additional lock-in period.

The SCP seeks to directly convert your existing SIBOR-based loan to a SORA-based loan. The key components of the SCP are:

  • Your existing SIBOR loan margin will remain unchanged;

  • 3-month Compounded SORA is a floating interest rate benchmark published by MAS;

  • Adjustment Spread will be added to account for the difference between SIBOR and 3-month compounded SORA.

For more information, please refer to FAQs and/or the letter sent by your bank, and contact your bank to find out more.

The financing needs and preferences would differ among homeowners. As such, you are strongly encouraged to contact your bank early to discuss your options which are tailored to you.

There are no fees for switching out of your SIBOR-based loan to the SCP or any prevailing packages offered by your bank.

However, fees may apply according to the terms of your existing loan package should you decide to refinance your loan with another financial institution. Reaching out to your bank early will furnish more time for you to assess your options and understand any terms and conditions that may apply.

If you take up the SCP, you may still switch once on or before 31 December 2024, from the SCP to a prevailing loan package offered by your bank, at no administrative fee.

Click on the following links to learn more / 点击以下链接了解详情:
Explainer Articles Explainer Videos

联合早报 (, 28 April 2024 – 期限将至 更多屋主转换房贷配套降低利率 | View on National Library Board's e-Resources

8World新闻网, 25 April 2024 – 约一半屋主已完成SIBOR房贷转换

联合早报 (, 2 March 2024 – "把握转换宽限期 姐妹花每月房贷偿还额降低"

The Straits Times, 2 March 2024 – "Switch from SIBOR to SORA before April 30: Act now to give yourself more time to choose new home loan""

联合早报 (, 8 February 2024 – "逾五成屋主已转换SIBOR房贷:你是还未行动的其中之一吗?"

The Straits Times, 8 February 2024 – "SIBOR to SORA: More to gain for homeowners who act before April 30"

联合早报 (, 8 December 2023 – "SIBOR明年底停用 逾5万份房贷未转换"

The Straits Times, 8 December 2023 – "Close to two-thirds of home owners with Sibor mortgages yet to switch as deadline looms", 4 December 2023 – “Transition of SIBOR Loans to SORA: Switch by 30 April 2024”

Budget Babe, 1 December 2023 – “PSA: No more SIBOR? Your SIBOR home loans will soon be pegged to SORA instead”

PropertyGuru, 30 November 2023 – “SIBOR to SORA transition: Why you should act now”, 20 November 2023 – “From SIBOR to SORA: What you should know about the upcoming change in home loan interest rate benchmarks"

8World新闻网,2023年11月20日 – "将SIBOR房贷转换成SORA 你行动了吗?"

8World新闻网, 25 April 2024 – SIBOR年底停用,你SORA了吗?

CNA Insider | Money Mind, 17 April 2024 – What You Need To Know About SORA Before You Choose A Home Loan

The Muttons, 27 March 2024 – “Did you know that SIBOR is being phased out? If your current home loan is based on SIBOR, contact your bank by 30 April to choose an alternative."

Bryan Wong, 24 March 2024 – “如果您的房贷是根据SIBOR计算的,请记得在2024年4月30号之前跟您的银行联系,并选择银行现有的其他配套或SORA转换配套。”

Yvonne Lim, 6 March 2024 – “如果你也收到银行的SIBOR房贷配套转换通知,别担心你只要在4月30日或之前联系银行,非常容易。”

Michelle Chong, 25 February 2024 – “Make your SIBOR home loan switch before 30th April or you may lose out on interest rate savings!"

Kelvin Learns Investing, 11 December 2023 – “If you are still on a traditional SIBOR-based home loan, listen up!”

Budget Babe, 4 December 2023 – “Act now to switch to an alternative home loan (of your choice and control) if you're on a SIBOR mortgage loan.”

SIBOR-Based Home Loan
SIBOR-Based Home Loan

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For more information, please refer to FAQs (English or Chinese) and/or the letter sent by your bank, and contact your bank to find out more.