OCBC launches first SORA-based home loan package

It is available to buyers with a minimum loan size of $720,000 (S$1m).

OCBC Bank has launched the first home loan package referencing the Singapore Overnight Rate Average (SORA), according to a news release.

The OCBC 90-Day SORA home loan package is available to buyers of completed private properties with a minimum loan size of $720,000 (S$1m). 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.

It has a one-year lock-in period and customers have the flexibility to make pre-payments of up to 50% of the loan amount in the first year without any penalty fee.

The 90-Day SORA value is updated every month instead of every three months for a particular loan. To determine the interest amount for the first month, the applicable SORA-based interest rate is computed using the simple average of the past 90-day SORA rates from the day of the loan disbursement.

At the start of every interest period, customers are given advance notice of the SORA-based interest rate to be paid for the coming month.