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More customer interest in floating-rate home loans amid Sora decline in Q2

But the majority of customers continue to choose fixed-rate packages

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Tan Nai Lun

Tan Nai Lun

Published Mon, Aug 18, 2025 · 02:22 PM
    • Tok Geok Peng, OCBC's group head of consumer secured lending, noted that houses are likely the biggest financial commitment of an individual.
    • Tok Geok Peng, OCBC's group head of consumer secured lending, noted that houses are likely the biggest financial commitment of an individual. PHOTO: OCBC

    [SINGAPORE] The local banks have observed more customer interest in home loans on floating-rate packages, following a decline in the Singapore Overnight Rate Average (Sora) in the second quarter of 2025.

    In Q2, the three-month compounded Sora fell by 50 basis points, even though the US Federal Reserve did not cut rates during the quarter.

    Expectations of the Fed cutting rates ahead also continue to put pressure on the Sora.

    Singapore banksSingapore mortgagesDBSOCBCUOB

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