What’s SORA, and how can it affect your property loan?

Buying a property is one of the biggest financial commitments you will likely ever make, and a key part of that process is choosing a property loan to finance your purchase. The interest rates of most floating rate property loans today are pegged to either the Singapore Dollar Swap Offer Rate , the Singapore Interbank Offered Rate or a bank’s board rate.

SORA is replacing SOR and SIBOR as the SGD interest rate benchmark for use in financial contracts such as loans, bonds and derivatives. Published daily by the Monetary Authority of Singapore , SORA is a robust and reliable interest rate benchmark that is fully backed by overnight interbank cash transactions in Singapore.

SOR incorporates risk premiums to compensate for the uncertainty involved in lending money over a period of time. On the other hand, SORA reflects overnight lending rates where the risks are much lower. Hence, SORA tends to be lower than SOR. For instance, looking at the past five years, the three-month compounded SORA, which is now widely used in property loans, has been on average about 30 basis points lower than the three-month SOR.

Apart from the SORA Conversion Package, you may also choose to switch to any other loan package like a fixed rate loan that your bank offers off-their-shelf, subject to the prevailing terms and conditions such as lock-in periods that could apply.The Adjustment Spread is computed as the average difference between SOR and compounded SORA over the preceding three months, subject to a floor of zero.

If you initiate a refinancing of your property loan with another bank , you should check if other TDSR exemptions apply to you. For example, borrowers who are owner-occupiers are exempted from TDSR when refinancing their property loans.If you have a home or commercial loan pegged to SOR or SIBOR, you will need to switch to a different loan package as both SOR and SIBOR will be discontinued soon.

Sora is a character in Kingdom Hearts and also the last character to appear in Super Smash Bros. Ultimate.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Source: BusinessTimes - 🏆 15. / 51 Read more »

Mental health in an unequal world — let’s ask what happened, not what’s wrongThe Covid-19 pandemic has triggered a mental health pandemic that will likely outlive the virus itself.
Source: TODAYonline - 🏆 1. / 99 Read more »

Source: BusinessTimes - 🏆 15. / 51 Read more »

China property association to examine difficulties faced by developers - reportBEIJING : A leading property association in China will hold a meeting with its members on Friday to assess the difficulties developers are facing across the country and any related risks, Yicai, a Chinese financial news outlet, reported on Tuesday. The meeting is for the China Real Estate Association (CRE
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

It's an allegory: North Korea website says 'Squid Game' reflects South Korea's 'beastly' societyA North Korean propaganda website said on Tuesday that the international Netflix hit 'Squid Game' exposes the reality of South Korean capitalist culture where 'corruption and immoral scoundrels are commonplace'. North Korea's Arirang Meari site cited unnamed South Korean film critics as saying that the TV series shows an 'unequal society where moneyless people are treated like chess pieces for the rich.' Made in South Korea, the nine-part thriller, in which cash-strapped contestants play deadly childhood games in a bid to win 45.6 billion won ($38 million), became a worldwide sensation https://www.reuters.com/article/us-northkorea-media-idUSKBN29P0C4 for Netflix when it was released in September.
Source: YahooSG - 🏆 3. / 71 Read more »

It's an allegory: North Korean website says 'Squid Game' reflects South Korea's 'beastly' societySEOUL — A North Korean propaganda website said on Tuesday that the international Netflix hit It makes sense.
Source: TODAYonline - 🏆 1. / 99 Read more »