Forward-looking term rates are more exposed to market factors on a single day's fixing, such as quarter or year-end volatility.OCBC's head of consumer financial services Sunny Quek said in a statement on Monday: "We are pleased to launch the first retail Sora-pegged home loan as the industry takes steps to move towards referencing an overnight risk-free rate, which provides for greater stability and transparency. This results in Sora being typically lower than Sibor - at an average of 0.35 per cent, based on OCBC's computations using variances between the rates from Jan 1, 2019 to June 30, 2020. This allows them to know upfront the exact interest rate to be charged for the coming month, as well as the instalment to be paid.The applicable Sora-based interest rate for the first month is computed using the simple average of daily Sora rates on the day of loan disbursement and the preceding 89 days. This methodology helps customers better plan their finances. Until we resolve the issues, subscribers need not log in to access ST Digital articles. SINGAPORE (THE BUSINESS TIMES) - OCBC Bank has launched Singapore's first home loan referencing the Singapore Overnight Rate Average (Sora), an alternative benchmark rate, available to buyers of completed private properties with a minimum loan size of S$1 million.This is another step in the industry's move toward adopting the Sora - the average rate of unsecured overnight interbank Singdollar (SGD) transactions brokered in Singapore - as the new interest rate benchmark for the SGD cash and derivatives market.Compounded Sora rates, which are backward-looking overnight rates, are thought to offer more stability compared to forward-looking term rates commonly used for floating home loan packages in Singapore, such as the Singapore Interbank Offered Rate (Sibor). The Swap Offer Rate (SOR) - the current benchmark used to price derivatives and business loans here - will be replaced, given the end of scandal-tainted Libor after 2021, as the SOR uses the US dollar Libor in its computation. This results in Sora being typically lower than Sibor – at an average of 0.35 per cent, based on OCBC’s computations using variances between the rates from Jan 1, 2019 to June 30, 2020.OCBC’s Sora loan package has a one-year lock-in period, which means customers can switch to another home loan package after a year at no cost.Customers can also make pre-payments of up to 50 per cent of the loan amount in the first year without any penalty fee.Banks in Singapore are expected to pilot more new Sora products in the second half of the year. “CapitaLand’s pioneer adoption of the SORA-based loan enables us to contribute to how SORA will be understood, structured and priced, in the process preparing the groundwork for mainstream adoption … The interest rate is calculated based on the simple average of the daily SORA rates over the past 90 calendar days to determine the repayment in advance. The 90-Day SORA home loan package is available to buyers of completed private properties with a minimum loan size of S$1mn.To continue reading... Sign in Password * Remember me Lost your password? 90-Day SORA (For new loans, completed private properties, minimum loan size of S$1 mil) OCBC 2y fixed rate: OCBC mortgage board rates: 3M SIBOR: 90-Day SORA (Simple Average) OCBC's Sora loan package has a one-year lock-in period, which means customers can switch to another home loan package after a year at no cost. OCBC has launched Singapore's first home loan referencing the Singapore Overnight Rate Average (SORA), an alternative benchmark rate, available to buyers of completed private properties with a minimum loan size of S$1 million. This landmark SORA-pegged loan, being a sustainability-linked loan, deeply resonates with OCBC’s and CapitaLand’s shared commitment to advancing green finance in Singapore,” she adds. "The interest rate for OCBC's 90-day Sora home loan is calculated based on the simple average of the daily Sora rates over the past 90 calendar days ahead of the loan repayment period.
SORA is the average rate of unsecured overnight interbank Singapore Dollar transactions brokered in Singapore from 9.00am to 6.15 pm daily and has been published by the Monetary Authority of Singapore (MAS) since 1 July 2005.The OCBC 90-Day SORA Home Loan is available to buyers of completed private properties with a minimum loan size of S$1 million. SINGAPORE (THE BUSINESS TIMES) - OCBC Bank has launched Singapore's first home loan referencing the Singapore overnight rate average (Sora…
The swap offer rate (SOR) – the current benchmark used to price derivatives and business loans here – will be replaced, given the end of scandal-tainted Libor after 2021, as the SOR uses the US dollar Libor in its computation.Nikkei marks 1-month closing high on virus drug hopes, autos gainCovid-19 impact: 10,000 IT professionals may have lost jobs in Q1We and our partners use cookies on this site to improve our service, perform analytics, personalize advertising, measure advertising performance, and remember website preferences. Oversea-Chinese Banking Corp.’s profit fell more than analysts anticipated in the second quarter as provisions for loan losses soared and lending income shrank during the pandemic. No. This results in Sora being typically lower than Sibor – at an average of 0.35 per cent, based on OCBC’s computations using variances between the rates from Jan 1, 2019 to June 30, 2020.