What is the difference between sor and sibor rates

Updated 11 January The contributed rates will be ranked in order, the top and bottom quartiles will be trimmed, with the remaining rates averaged arithmetically. Each Contributor Bank's contribution carries an equal weight in the calculation, subject to the trimming.

It is a fully owned subsidiary of the Association of Banks in Singapore. Export SOR Rates. You acknowledge and agree that you shall not further disseminate the data and information contained herein to any person or entity without the express written consent of ABS Co. You may not develop or create any product that uses, is based on, or is developed in connection with any of the information including, without limitation, proprietary data and indices available on this website without prior approval from ABS Co.

All content, rates, web pages, information remain as the exclusive property of ABS Co, and no rights or interests in the same shall be acquired by you. All rates listed here are unofficial rates. You should use the rates available from market data vendors for final Settlement prices. The rates supplied here are for your personal use only. This is because Singapore is a very international market, and there are many international banks operating in the country.

Both rates following the during the Great Recession and then stayed very low from through Notably, the spread among different tenure SIBOR rates have widened in , meaning longer term loans have become relatively more expensive quicker than shorter term loans. How do these interest rates impact you if they are only applicable to bank that lend to each other?

SIBOR or SOR based home loan packages in Singapore are typically structured to allow borrowers to determine what their interest payments will be until the end of the loan tenure. Below is an example of a typical floating rate mortgage loan in Singapore. A floating rate loan could be a cheaper source of funding than a fixed rate loan. However, it exposes the borrower to the risk of rising interest rates, which will inflate the debt's cost over time.

A fixed rate can reduce this uncertainty, though it comes with a higher interest rate than a comparable floating rate loan in exchange. Or, you could go with a SOR rate to save on your interest in the short-term, though you take the risk of highly volatile interest rate that could increase more than SIBOR.

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