Singapore Swap Offer Rate (SOR)
Singapore Swap Offer Rate (SOR) is " the expected forward exchange rate between the US dollar and Singapore dollar." and is simply the rate that one would have to pay if he or she would to borrow in US dollars.
SOR comes in loan period of 1-, 3-, 6- , or 12-month. At the end of the loan period, the US$ will be converted into Sing$ to be repaid. However, as it is linked to currency movements, it is more volatile than Singapore Interbank Offered Rate (SIBOR).
Like SIBOR, SOR is set by the Association of Banks in Singapore, and is also publicly available.
Residential property loans in Singapore are no longer pegged to SOR as banks have withdrawn them in 2017. SOR-pegged mortgages in recent years are not as popular as SIBOR-linked mortgages or Fixed Deposit Rates linked mortgages due to its volatility. They are still available in the wholesale and commercial lending space.
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