FHR Loans Explained: Benefits of Homejourney Applications
A Fixed Deposit Pegged Home Loan (FHR loan), also known as a fixed deposit rate loan or FD pegged mortgage, ties your home loan interest to a bank's fixed deposit (FD) rates plus a fixed spread. This provides more predictable repayments compared to floating SORA-linked loans, ideal for Singapore buyers seeking a stable rate loan in volatile markets.[1][2]
Homejourney simplifies applying for FHR loans from DBS, UOB, OCBC, and others, offering multi-bank submissions via Singpass for faster approvals in a trusted, secure platform. This cluster dives deep into FHR mechanics, FHR vs SORA comparisons, and why Homejourney maximizes your benefits—linking back to our pillar guide on Singapore mortgage types for full coverage.
What is a Fixed Deposit Pegged Home Loan?
FHR stands for Fixed Deposit Home Rate, where your loan rate equals the bank's FD rate (e.g., FHR6 for 6-month average) plus a bank spread like 1.25%.[1][3] For instance, if DBS FHR6 is 1.90% and spread is 1.25%, your total rate is 3.15%—stable until the FD rate changes.[1]
Unlike SORA (Singapore Overnight Rate Average), which fluctuates daily based on interbank lending, FHR tracks slower-moving FD rates banks offer depositors.[2][4] Banks like DBS and UOB lead FHR offerings; DBS simplified to FHR6, previously using FHR9 or FHR18 (higher numbers mean higher, steadier rates).[1]
FHR gained popularity post-2017, with 90% of DBS home loans choosing it for lower volatility during rate cycles.[1] Under MAS rules, all Singapore loans peg to indices like FHR or SORA—no more fixed rates or zero-spread deals.[1]
Key Benefits of FHR Loans for Singapore Buyers
FHR offers stability: FD rates rise slower than SORA, shielding repayments from sharp hikes.[1][2] In rising rate environments like 2022-2026, FHR maintained predictability while 3-month SORA climbed from 0.19% to over 3%.[4]
Lower effective rates historically: Paired with caps (e.g., DBS caps at 1.8% for 2 years), FHR beat SIBOR peers.[2][3] For a $1M HDB loan at 90% LTV, FHR at 1.6% (0.6% FD + 1% spread) saves $76/month vs standard packages post-TOP.[3]
- Predictability: Ideal for first-time HDB buyers in areas like Punggol or Tengah, budgeting fixed EMIs.
- Refinancing edge: Lock low spreads; higher FHR (e.g., FHR18) resists future hikes.[1]
- HDB/private flexibility: Use CPF OA for repayments at 2.5% interest, per CPF rules.[4]
Drawbacks: Banks control FD rates, potentially raising them without market pressure, though caps mitigate this.[2]
FHR vs SORA: Which Stable Rate Loan Wins?
SORA reflects unsecured overnight borrowing, more volatile than FHR's deposit-based peg.[4] FHR suits conservative borrowers; SORA favors those expecting rate drops. See our SORA guide for details.
| Aspect | FHR (FD Pegged) | SORA |
|---|---|---|
| Peg Basis | Bank FD rates (slower changes) | Overnight interbank rate (daily) |
| Stability | High; less prone to spikes[1] | Medium; rose sharply 2022-24[4] |
| Current Example (2026) | DBS FHR6 +1.25% ~3.15% | 3M SORA ~3% + spread |
| Best For | Risk-averse, long-term holders | Rate optimists |
The chart below shows recent interest rate trends in Singapore:
As seen, FHR lags SORA rises, offering stability amid 2026 uncertainties.[1][4]
Benefits of Applying FHR Loans via Homejourney
Homejourney prioritizes your safety with verified bank partners (DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, and more), transparent comparisons, and Singpass integration—building trust through user feedback-driven improvements.
- Multi-bank magic: One application reaches all partners; compare side-by-side offers instantly. Skip bank-hopping.
- Eligibility calculator: Assess borrowing power pre-application at Homejourney's tool.
- Singpass speed: Auto-fills income, CPF, employment—boosts approvals 2x faster.
- Real-time tracking: Monitor status, SORA/FHR rates live; get personalized broker advice.
Users save weeks vs individual applications, per Homejourney data. For HDB upgraders, pair with property search to match budgets safely.
Step-by-Step: Apply for FHR Loan via Homejourney
Follow these actionable steps for seamless approval:
- Check eligibility: Use bank-rates calculator; input income, CPF for TDSR-compliant max loan (e.g., $800K for $10K/month household).
- Compare FHR rates: View DBS FHR6 vs UOB equivalents side-by-side.
- Submit via Singpass: One form to 10+ banks; documents auto-pull.
- Review offers: Track in-app; select best (e.g., lowest spread).
- Finalize: E-sign; funds disburse in 7-21 days per HDB/MAS timelines.
Documents checklist:
- NRIC (Singpass provides)
- Latest payslips/NOA (auto via MyInfo)
- CPF statements (HDB/CPF portal)
- Property docs (Option to Purchase from seller)
Pro tip: Apply 4-6 weeks pre-submission deadline for BTO/HDB resale; boost odds with 20%+ downpayment. Avoid pitfalls: Don't lock low-spread short-term FHR if planning 30-year hold.[1] Disclaimer: Rates fluctuate; consult Homejourney brokers for advice—this isn't financial advice.
FAQ: Fixed Deposit Pegged Home Loans
What banks offer FHR loans in 2026?
Primarily DBS (FHR6) and UOB; compare all via Homejourney's bank-rates page.[1][2]
Is FHR better than SORA now?
Yes for stability in high-rate 2026; FHR changes slower.[1][4] See FHR rates guide.
Can I refinance to FHR via Homejourney?
Absolutely—our multi-bank system simplifies switching; check eligibility first.
What's the lock-in for FHR?
Typically 2-3 years; Homejourney shows per-offer details.[3]
How does Homejourney ensure safety?
Verified partners, Singpass security, transparent tracking—your trust first.
Ready for Fixed Deposit Pegged Home Loan Explained: Benefits of Applying via Homejourney? Start at Homejourney bank-rates for secure, efficient FHR applications. Explore our pillar on mortgage types for more.
