FHR Loans Explained: Benefits of Homejourney Applications

A Fixed Deposit Pegged Home Loan, also known as an FHR loan or fixed deposit rate loan, ties your mortgage interest to a bank's fixed deposit (FD) rates plus a fixed spread, offering more stability than floating SORA loans for Singapore homebuyers.[1][2]

Homejourney simplifies applying for these stable rate loans by letting you submit one application via Singpass to DBS, OCBC, UOB, HSBC, and more, comparing offers side-by-side in a trusted, secure platform.[1]

What is a Fixed Deposit Pegged Home Loan (FHR)?

FHR stands for Fixed Deposit Home Rate, where your loan rate = bank's FD rate (e.g., FHR6 for 6-month average) + bank spread (typically 1-1.5%).[1][2][3]

For example, if DBS FHR6 is 2.90% and spread is 1.25%, your total rate is 4.15% – and it adjusts only when FD rates change, not daily like SORA.[1]

Unlike SORA, which follows market volatility, FHR provides predictability as banks' FD rates move slower.[4] Currently in 2026, FHR options from DBS and UOB remain popular for HDB and private properties.[2]

This connects to our pillar guide on Types of Home Loans Singapore: Complete Comparison via Homejourney , covering all loan types including FHR vs SORA.

FHR vs SORA: Key Differences for Singapore Borrowers

FHR pegs to bank FD rates (e.g., FHR6, FHR9), changing quarterly or less frequently, ideal for risk-averse buyers wanting steady payments.[1][3]

SORA (Singapore Overnight Rate Average) fluctuates daily but compounds monthly; it's lower in stable times but spikes with rate hikes.[4]

FHR: More stable, bank-controlled but checked by FD payouts to depositors.[2]
SORA: Market-driven, transparent via ABS, but volatile (e.g., rose to 3.641% by 2024).[4]
Best for FHR: Long-term HDB loans or if expecting steady rates.[1]

The chart below shows recent interest rate trends in Singapore:

As seen, FHR tracks FD stability while SORA shows sharper moves – choose FHR for peace of mind via Homejourney's bank rates comparison[1][4]

Benefits of FHR Loans in Singapore's 2026 Market

FHR offers lower volatility than SORA, with historical popularity (90% of DBS loans in 2017).[1] In rising rate environments, FHR caps limit spikes.[2]

Stability: Payments predictable; higher FHR numbers (e.g., FHR18 at 0.60% base vs FHR6) suit conservative borrowers.[1]
Competitive Rates: Often starts lower than board rates; e.g., DBS FHR +1% spread beats typical packages post-TOP.[3]
CPF Friendly: Use CPF-OA for repayments (2.5% interest), capped by valuation limits per ABS guidelines.[4][6]

Homejourney verifies these rates daily, ensuring you get accurate FHR quotes from partners like Standard Chartered and Maybank.

Why Apply for FHR via Homejourney? Exclusive Benefits

Homejourney prioritizes your safety with verified bank partnerships, transparent comparisons, and Singpass integration – no more visiting branches.[1]

Multi-Bank Submission: One form sends to DBS, UOB, OCBC, HSBC, CIMB, RHB – receive multiple FHR offers fast.
Eligibility Calculator: Instant TDSR check at Homejourney mortgage calculator before applying.
Singpass Auto-Fill: Income, CPF data pulls in seconds for quicker approvals.
Side-by-Side Comparison: View FHR6 vs FHR9 spreads from all banks; track status in-app.
Mortgage Brokers: Free guidance from Homejourney experts on FHR suitability.

Skip bank queues – apply securely at https://www.homejourney.sg/bank-rates and match loans to properties via property search.

Step-by-Step: How to Apply for FHR Loan via Homejourney

Applying takes 5-10 minutes; approvals in 1-3 days from banks like Public Bank or Hong Leong.[1]

Check Eligibility: Use Homejourney calculator; ensure TDSR <60%, MSR for HDB.
Compare Rates: See live FHR from 10+ banks at bank-rates page.
Prepare Docs: NRIC, income slips (3 months), CPF statements, property option fee proof.
Apply via Singpass: Auto-fills form; submits to all partners.
Review Offers: Compare FHR spreads (e.g., 1.25% vs 1.5%); select best.
Sign & Fund: Legal completion; use CPF up to limits.[6]

Pro Tip: Apply early in month for best FD rates; avoid low FHR/high spread packages long-term.[1] See our FHR Loans Explained: Fixed Deposit Pegged Home Loan FAQs FHR Loans Explained: Fixed Deposit Pegged Home Loan FAQs | Homejourney .

Documentation Checklist & Common Pitfalls

Required: Singpass-ready NRIC, latest payslips, tax assessments (IRAS), HDB letter if applicable, bank statements.
Where to Get: Payslips from employer/HR; CPF via CPF portal; IRAS e-filing.
Tips: Scan docs clearly; update address if recent mover.

Avoid: Incomplete income proof (delays 1-2 weeks); ignoring lock-in (2-3 years typical).[3] Homejourney flags these pre-submission.

Disclaimer: Rates change; consult Homejourney brokers or MAS for advice. Not financial advice.[6]

FAQ: Fixed Deposit Pegged Home Loans

What is the current DBS FHR6 rate?
Typically 2.90% + spread (e.g., 1.25%) = 4.15%; check Homejourney bank-rates for live quotes.[1]

Is FHR better than SORA in 2026?
FHR for stability if rates rise slowly; SORA if expecting falls. Compare via Homejourney.[1][4]

Can I refinance FHR later?
Yes, after lock-in; use Homejourney for easy multi-bank quotes.[3]

Eligibility for first-time HDB buyers?
Meets HDB/URA rules; calculate via our tool.[6]

How does Homejourney ensure safety?
Singpass-secured, verified partners, transparent tracking – trust built on user feedback.

Ready for stable financing? Apply for your FHR loan via Homejourney today at https://www.homejourney.sg/bank-rates. Explore full home loan types in our pillar: Types of Home Loans Singapore: Complete Comparison & FAQs | Homejourney Types of Home Loans Singapore: Complete Comparison & FAQs | Homejourney .