Before the end of 2022, all SOR-based property loans would have transited to SORA interest rate benchmark. If you have an existing housing loan that is pegged to Singapore Dollar Swap Offer Rate (‘SOR’), your bank might have or will be contacting you about the need to move to a new loan package. In case you are wondering, this is a global situation and certainly not unique to Singapore. As a mortgage borrower on floating interest rate, you must be wondering why is there a need to switch and how would this impact your mortgage payments. WHAT IS THE SORA INTEREST RATE BENCHMARK? SORA, administered by the Monetary Authority of Singapore (‘MAS’), is the volume-weighted average borrowing rate in Singapore’s unsecured overnight interbank cash market. I understand that this is quite a mouthful and probably too steeped in jargony. Therefore, I am going to break it down with an example as shown in Diagram 1....