SIBOR Rate Singapore: What It Was and Why SORA Replaced It
SIBOR (Singapore Interbank Offered Rate) was the benchmark interest rate that Singapore banks historically used to price home loans and other floating-rate credit. It was permanently discontinued — the 6-month rate in March 2022 and the 1-month and 3-month rates immediately after 31 December 2024 — and fully replaced by SORA (Singapore Overnight Rate Average) for all new and existing loans.
Not financial advice. All figures for educational reference only. Data as at July 2026. Last updated: July 2026.
Key Takeaways
- SIBOR is no longer published or used for any Singapore dollar loans as of 2026 — it was fully discontinued by the end of 2024.
- SORA has completely replaced SIBOR as the interest rate benchmark, computed from actual overnight interbank transactions rather than bank estimates.
- Homeowners with legacy SIBOR-pegged loans were automatically converted to SORA-based packages starting June 2024 if they had not proactively switched earlier.
- People still search for SIBOR rate because it appears in old loan documents, historical mortgage statements, and legacy financial planning material.
- If a loan statement still references SIBOR today, contact the bank immediately — it should have been converted to a SORA-based rate structure by mid-2024.
What Was SIBOR?
SIBOR was a benchmark interest rate published daily, representing the average rate at which banks in Singapore said they would lend to one another in Singapore dollars. It was administered based on submissions from a panel of banks — an estimate of borrowing costs rather than a rate derived from actual completed transactions. For decades, SIBOR (particularly the 1-month and 3-month tenors) was the standard reference rate for Singapore home loans, meaning a mortgage interest rate was typically quoted as SIBOR plus a bank spread, resetting periodically as SIBOR moved.
Following global benchmark rate manipulation scandals overseas (notably LIBOR) and concerns that panel-based, estimate-driven benchmarks were vulnerable to manipulation and thin trading, regulators worldwide — including the Monetary Authority of Singapore — pushed to transition benchmark rates to ones based on actual, observable transactions.
For Singapore, that transaction-based replacement is SORA, and the transition away from SIBOR is now complete: as of July 2026, SIBOR is a defunct, historical benchmark. It no longer exists as an active reference rate for any new Singapore dollar loan or financial product.
How Did the SIBOR to SORA Transition Work in Singapore?
MAS led an industry-wide transition managed in phases, giving banks and borrowers time to move existing SIBOR-linked contracts to SORA-based equivalents.
| Milestone | What Happened |
|---|---|
| 6-month SIBOR discontinued | 31 March 2022 |
| Active switching period | 1 September 2023 to 30 April 2024 — borrowers encouraged to proactively switch to a SORA Conversion Package |
| Automatic conversion | From 1 June 2024 — any remaining SIBOR-pegged loans were automatically converted to SORA-based packages by banks |
| 1-month and 3-month SIBOR discontinued | Immediately after 31 December 2024 |
| Current status (2026) | SIBOR no longer published or referenced in any active Singapore dollar loan |
SORA, by contrast, is computed and published by MAS itself, derived from actual unsecured overnight interbank Singapore dollar transactions — making it a more robust, transaction-based benchmark that is harder to manipulate and more representative of real market conditions.
SIBOR to SORA Example
A homeowner took a mortgage in 2019 pegged to 3-month SIBOR plus 1.0%. At the time, 3-month SIBOR was around 1.9%, giving an effective mortgage rate of roughly 2.9%. By the active switching window in late 2023, the bank offered a SORA Conversion Package, typically structured as 3-month compounded SORA plus a comparable spread, designed to produce a broadly similar rate at the point of conversion. If no action was taken, the loan was automatically converted to a SORA-based package by June 2024. As of July 2026, the mortgage rate moves with 3-month compounded SORA, which was around 1.08% to 1.12% in early July 2026, plus the bank spread — SIBOR no longer plays any role in the loan.
Why the SORA Transition Mattered
- More transparent and manipulation-resistant. SORA is calculated from actual completed transactions rather than bank estimates, closing the door on the kind of rate manipulation seen with LIBOR overseas.
- Administered directly by MAS. Singapore’s central bank publishes SORA daily, giving borrowers and the market a single authoritative source.
- Aligned Singapore with global benchmark reform. The shift mirrors similar transitions from LIBOR to SOFR (US) and other risk-free rates internationally.
- Simplified loan comparison going forward. With SIBOR gone, all floating-rate Singapore dollar loans now reference a single consistent benchmark family (compounded SORA), rather than a mix of benchmarks.
- Existing borrowers were protected during transition. MAS required banks to offer conversion packages designed to be broadly rate-neutral at the point of switch, rather than allowing sudden repricing shocks.
Risks and Limitations of the Historical SIBOR System
- Estimate-based, not transaction-based. SIBOR relied on panel bank submissions of what they believed they would be charged, which proved vulnerable to manipulation in comparable overseas benchmarks.
- No longer available for new products. Any information, calculator, or article still quoting live SIBOR rates as if current is out of date — SIBOR has not been published since late 2024.
- Legacy confusion. Some older financial planning tools, loan documents, and even bank marketing archives still reference SIBOR, which can confuse borrowers checking their current rate structure.
- Rate reset timing differs from SORA. Compounded SORA is inherently backward-looking, based on the historical daily rate over the period, which behaves somewhat differently from how SIBOR was set, and can take time for borrowers to get used to.
SIBOR (Historical) vs SORA (Current)
| Factor | SIBOR (Discontinued) | SORA (Current) |
|---|---|---|
| Status in 2026 | Fully discontinued, no longer published | Active — Singapore’s standard interest rate benchmark |
| Basis | Panel bank estimates of interbank lending rates | Actual completed overnight interbank transactions |
| Administered by | Formerly ABS Benchmarks Administration Co | Monetary Authority of Singapore (MAS) |
| Used for | Historical home loans, now fully converted | All current floating-rate SGD loans and deposits |
| Rate structure | Forward-looking term rates (1M, 3M, 6M) | Compounded backward-looking rates (1M, 3M compounded SORA) |
The Bottom Line
SIBOR is a discontinued, historical Singapore interest rate benchmark that no longer applies to any active loan as of 2026 — every Singapore dollar loan that once referenced SIBOR has since been converted to a SORA-based structure. If SIBOR is still mentioned on a current loan statement, that is worth raising with the bank immediately, since the industry-wide transition to compounded SORA was completed in 2024.