A board rate is a home loan reference rate that a bank sets internally, rather than one taken from a published market benchmark such as SORA. MoneySense lists it among the rates a floating home loan can be tied to; MAS calls it an administered rate, determined by each bank, and notes that for administered-rate mortgages banks decide how often and by how much the rate changes. MoneySense says banks give notice, usually 30 days, before changing a home loan rate. For comparison, MAS’s 3-month compounded SORA was 1.23% for SORA value date 1 Oct 2026.
Key takeaways
- MoneySense describes floating-rate home loans as usually tied to a reference rate, for example the CPF Ordinary Account rate, SORA, or a rate determined by the bank such as an internal board rate. When the reference rate rises the interest payable rises, and when it falls the interest falls.
- MAS’s November 2021 information paper describes board rates and fixed deposit rates as administered rates, determined by each financial institution, as opposed to market indicators such as SORA. Banks decide how often and by how much an administered rate changes, and MAS expects rates set by the institution to be adjusted fairly, in line with sustained trends in its cost of funding.
- MoneySense says banks inform borrowers in advance, usually 30 days, before changing a home loan rate. MAS’s fact sheet template has each bank state its own notice period for any rate component that is not fixed, and MAS describes a minimum of 30 days as good practice.
- In a 2022 parliamentary reply, MAS said that as of Q2 2022 about one in three homeowners with mortgages from financial institutions were on packages moving with market rates, while the rest were on board-rate or fixed-deposit-rate packages, which track market rates with some lag, or on fixed rates for the first two to three years.
- SORA is the volume-weighted average rate of borrowing in Singapore’s unsecured overnight interbank market, published by MAS by 9am on the next business day together with 1-, 3- and 6-month compounded averages. It replaced SOR, discontinued on 30 June 2023, and SIBOR, discontinued after 31 December 2024; new SOR and SIBOR loans stopped in 2021.
What is a board rate?
MAS describes a floating home loan rate as a reference rate plus a spread. The reference rate is either a published market benchmark such as SORA or an administered rate the bank sets itself, such as a board rate; MoneySense also lists the CPF Ordinary Account rate.
In its December 2022 response on the fact sheet notices, MAS said that where a loan is pegged to a lender’s cost of funds or internal rate, the lender is already required to disclose that the rate may fluctuate, and should also disclose that the rate is set internally rather than by the market, unlike SORA.
Board rate beside the other home loan rates
How each kind of home loan rate is set and when it moves, as MoneySense, MAS and the CPF Board describe them.
| Rate | Set by | When it changes |
|---|---|---|
| SORA-pegged | Compounded SORA, a market benchmark MAS publishes daily, plus a spread | With the market: it follows the 1-, 3- or 6-month compounded SORA the package uses |
| Board rate | Set internally by the bank, plus a spread | When the bank decides, with advance notice |
| Fixed deposit rate | A deposit rate set by the bank, plus a spread | When the bank decides, with advance notice |
| HDB loan | CPF Ordinary Account rate + 0.1% | May change in January, April, July or October |
| Fixed rate | Fixed for the first few years | Not during the fixed period; variable after it |
Instalments at the fact sheet’s test rates, SGD 500,000 over 25 years
Money Snap’s monthly instalments on an illustrative loan at three of the reference rates MAS’s fact sheet template uses. A bank’s fact sheet adds the loan’s spread to each rate; these figures do not.
Where the board rate shows up
Five things people get wrong
- MoneySense — How home loans work — reference rates, notice and the fact sheet
- MoneySense — Switching to SORA — SOR and SIBOR end dates
- MAS — SORA — what SORA is and when it is published
- MAS — Residential mortgage pricing and disclosure practices (Nov 2021) — administered rates and fair adjustment
- MAS — Notice 632A on the property loan fact sheet — notice periods and the rate illustration
- MAS — Reply to parliamentary question (20 Oct 2022) — how packages track market rates
- MAS — Interest rate benchmarks transition — the end of SIBOR
- MAS — Response to feedback on the fact sheet notices (Dec 2022) — disclosure for internal rates
- CPF Board — CPF interest rates — the OA rate behind the HDB rate, 1 Oct – 31 Dec 2026
Official MoneySense and MAS descriptions and data, for general information only. Not financial advice.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MoneySense and MAS and seek independent professional advice before making any financial decisions.