3-month Sibor falls to year's low, renewing battle in home-loan market

Singapore

THE three-month key Singapore interbank offered rate or Sibor has finally cracked, weighed down by domestic liquidity - and DBS Bank has wasted no time in offering cheaper home loans.

Sibor fell to the year's low on Thursday to 0.87067 per cent, from 0.87242 per cent the day before.

Although the decline is small, it is significant because the sticky three-month Sibor, which is used to price home loans, had barely moved in the past few months.

On the other hand, the more volatile three-month swap offer rate (SOR), which is used to price corporate loans, has bee…