If your floating-rate home loan resets every quarter, the number doing the work is 3M SORA. As of late June 2026, 3-month compounded SORA sits around 1.05% to 1.10%, down from roughly 3% in early 2025, based on the daily values the Monetary Authority of Singapore (MAS) publishes by 9am each business day. Most new and refinanced Singapore mortgages are pegged to it, so 3M SORA plus your bank's fixed spread is close to the rate you actually pay this quarter. This guide covers the live figure, why 3M is the default peg, how it stacks up against 1M SORA, and what a falling 3M SORA does to your repayment, your T-bill yields and your refinancing maths.
SORA, the Singapore Overnight Rate Average, is the volume-weighted average rate of all unsecured overnight interbank Singapore dollar borrowing, built from real transactions between 8am and 6.15pm each business day. 3M SORA, or 3-month compounded SORA, takes that daily overnight rate and compounds it over the trailing three months. The compounding is what smooths the line: a single noisy day barely moves a 90-day average.
Banks do not lend against the raw overnight figure. They peg mortgages to compounded SORA, and the three-month tenor is the one most packages use. MAS publishes the official daily and compounded values on its website by 9am the next business day, so the figure quoted on bank and aggregator pages traces back to one government source. For the plain-English definition of the benchmark, see our SORA glossary entry.
Figures move daily and banks reprice weekly, so treat the table below as a snapshot dated late June 2026, not a guaranteed rate. Always confirm the live number on the MAS SORA page before you sign anything.
| Tenor | Approx. value | What it prices | Reset frequency |
|---|---|---|---|
| 1-month (1M) | ~1.00% | 1M SORA mortgage packages | Monthly |
| 3-month (3M) | ~1.05-1.10% | Most SORA home loans | Quarterly |
| 6-month (6M) | ~1.08% | A few HDB and niche packages | Twice a year |
Two things make the three-month tenor the workhorse. First, stability. A 3M peg averages 90 days of overnight rates, so the figure you carry for a quarter has already absorbed the daily swings. A 1M peg recalculates off a 30-day window, which reacts faster but also jumps around more. For a borrower who wants a predictable instalment, that smoothing is the whole point.
Second, the reset cadence matches how households budget. Your rate locks for three months, then resets to the prevailing 3M SORA plus your fixed spread. You get one repricing per quarter to plan around, not twelve a year. Banks also tend to price their tightest spreads on 3M packages because the tenor is liquid and widely hedged.
The tradeoff is lag. In a falling-rate stretch like mid-2026, a 3M peg passes cuts to you up to three months slower than a 1M peg. In a rising stretch, that same lag works in your favour. Run the comparison for your own loan size with the mortgage repayment calculator before you pick a tenor.
There is no permanently better tenor, only a better fit for where rates are heading and how much volatility you can stomach. The ordering between the two is itself a signal. When SORA is trending down, the 1-month figure usually sits below the 3-month figure, because the shorter window has already swallowed the most recent cuts. That is what the June 2026 readings show, with 1M around 1.00% against 3M near 1.05% to 1.10%. When SORA climbs, the relationship flips and 1M tends to print above 3M.
So a quick glance at whether 1M is above or below 3M tells you, roughly, which way the benchmark has been moving. If you expect more cuts, a 1M peg captures them sooner; if you want fewer surprises, a 3M peg is calmer. Our fixed vs floating mortgage comparison walks through the same decision against a fixed package.
Your loan rate is 3M SORA plus a fixed spread the bank sets at signing. If 3M SORA is 1.07% and your package reads '3M SORA + 0.25%', your effective rate this quarter is about 1.32% per annum. The SORA part floats; the spread stays put for the life of the package, which is why a thin spread on a low-SORA day is the deal worth chasing.
As of June 2026, the sharpest floating packages were quoting roughly 3M SORA + 0.20% to + 0.30%, putting headline rates in the low-to-mid 1% range for both private property and HDB flats. Two-year fixed packages started from around 1.40% p.a. The gap between the cheapest fixed and floating deals has narrowed to under 0.2%, unusually tight by recent standards. Banks reprice weekly, so the figures below are indicative.
If you are weighing a bank loan against the HDB concessionary loan, the HDB loan vs bank loan comparison lays out the 2.6% HDB rate against floating SORA packages.
| Package | Pricing | Effective rate (approx.) | Property type |
|---|---|---|---|
| Floating (3M SORA) | 3M SORA + 0.20% | ~1.27% p.a. | Private condo |
| Floating (3M SORA) | 3M SORA + 0.25% | ~1.32% p.a. | HDB flat |
| 2-year fixed | Fixed | from ~1.40% p.a. | Private condo |
| 2-year fixed | Fixed | from ~1.50% p.a. | HDB flat |
3M SORA has slid from roughly 3% in early 2025 to around the 1% region by mid-2026, and the effects reach past your mortgage. DollarsAndSense flagged in April 2026 that a drop of this size shaves more than $200 a month off a $500,000 loan over 25 years once it flows through to floating repayments. That is the headline win, but it cuts both ways depending on what you hold.
Lower 3M SORA means lower floating instalments at the next quarterly reset, and a sharper case for refinancing anyone still on an old package above 2.5% to 3%. Weigh the legal and valuation costs, any clawback of subsidies, and your lock-in before switching.
Falling SORA drags Singapore T-bill yields down with it. Recent 6-month T-bill cut-offs have printed around 1.6% or lower, well off their 2023 peak, even as demand stays heavy. If you parked an emergency fund in T-bills for the yield, the next roll will likely pay less. Compare your options in our SSB vs T-bill vs fixed deposit comparison.
A lower SORA cuts borrowing costs for Singapore REITs, lifting distributable income and supporting valuations, though the benefit lands unevenly. Industrial and logistics names with strong occupancy tend to gain more than hospitality. A REIT is still rate-sensitive, so treat lower SORA as a tailwind, not a guarantee.
SORA won out because it is built from completed transactions, not bank estimates. The Swap Offer Rate (SOR) was discontinued on 30 June 2023, and 1-month and 3-month SIBOR ended on 31 December 2024, per MAS and MoneySense. Borrowers on old SOR packages were converted to SORA at no extra fee, with a standardised credit adjustment spread bridging the gap between the two benchmarks.
That adjustment spread matters if you compare an old SOR-converted rate to a fresh 3M SORA quote. MoneySense notes the retail adjustment spread was set as the average difference between SOR and 3-month SORA over a reference window, floored at zero. A fresh package skips that legacy add-on, which is one more reason a refinance can beat sitting on a converted loan.
Forecasts for late 2026 diverge, which is worth knowing before you bet a tenor on a single number. DollarsAndSense cited a panel view of 3M SORA near 0.7% by year-end, while UOB projections quoted elsewhere expect SORA to bottom near 1% before rebounding toward roughly 1.39% by year-end. Other house views see a 1.0% to 1.5% band through 2026. The honest read: the easing cycle looks mature, the downside is getting thinner, and a modest rebound is on the table.
Because the path is uncertain, the decision is less about predicting the exact figure and more about your reset cadence and lock-in. If you value certainty, a fixed or 3M peg shields you from month-to-month noise; if you back further cuts, a shorter peg captures them faster. Whatever you choose, price it off the live MAS figure, not a stale quote.
As of late June 2026, 3-month compounded SORA sits around 1.05% to 1.10%, down from roughly 3% in early 2025. MAS publishes the official daily and compounded values on its website by 9am each business day, so always confirm the live figure there before signing a loan.
Neither is permanently better. 3M SORA resets quarterly and is smoother, so instalments are more predictable, while 1M SORA resets monthly and passes rate cuts to you faster. In a falling-rate stretch a 1M peg captures cuts sooner; if you prefer fewer surprises, a 3M peg is calmer and often carries the lowest bank spread.
Your effective rate is 3M SORA plus a fixed spread set at signing. If 3M SORA is 1.07% and your package is 3M SORA plus 0.25%, you pay about 1.32% per annum that quarter. The SORA part floats with the market; the spread stays fixed for the life of the package.
Often yes, especially if you are still on a package above about 2.5% to 3%. A lower 3M SORA cuts floating instalments at the next quarterly reset, but you should net the savings against legal fees, valuation costs, any subsidy clawback and your existing lock-in period before switching.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.