FHR Loans Explained: Benefits of Homejourney Applications

A Fixed Deposit Pegged Home Loan (FHR loan), also called fixed deposit rate loan or FD pegged mortgage, ties your interest rate to a bank's fixed deposit (FD) rates plus a fixed spread, offering more stability than SORA-pegged 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 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][3][4]

For example, if DBS FHR6 is 1.90% and spread is 1.25%, your all-in rate is 3.15%.[1] The FD peg changes only when the bank updates its board rates, often less volatile than daily SORA fluctuations.[2][6]

Unlike HDB loans pegged at 2.6% (0.1% above CPF OA rate), FHR loans from banks like UOB or DBS suit private properties and offer promotional caps, e.g., max 1.8% for 2 years.[3][8]

This connects to our pillar guide on HDB贷款vs银行贷款2026年最新对比：Homejourney指南 ">HDB vs Bank Loans, where FHR shines for upgraders seeking lower initial rates.

FHR vs SORA: Key Differences for Singapore Buyers

SORA (Singapore Overnight Rate Average) is a floating benchmark updated monthly, now at ~3.64% (3M compounded as of 2024 trends), making payments unpredictable.[6]

FHR provides steadier rates as banks tie them to FD promotions to attract deposits, historically lower and less swingy—DBS FHR once hit 90% market share in 2017.[1][9]

Feature	FHR (Fixed Deposit Pegged)	SORA
Peg	Bank FD rate + spread	Daily overnight rate avg
Volatility	Lower, changes on bank discretion	Higher, market-driven
Current Example	FHR6 +1.25% ~3.15%	3M SORA ~3.64% +0.3%
Best For	Stability seekers	Rate fall expectations

FHR suits risk-averse first-timers or HDB upgraders; always check TDSR (60% debt cap) via Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator.[7]

Benefits of FHR Loans in 2026 Singapore Market

Stability: Less prone to spikes than SORA, ideal amid MAS cooling measures.[1][3]

Promotional caps protect against rises (e.g., UOB FHR18 cap at 1.8%).[3]
Lower entry rates: Often 0.25-0.60% base vs SORA's 3%+.[1][4]
CPF usable for repayments, though forgo 2.5% OA interest.[6]

Refinancing Edge: Switch to FHR if existing SORA loan rises; Homejourney tracks real-time rates.

The chart below shows recent interest rate trends in Singapore:

As seen, FD pegs lag SORA peaks, benefiting long-term holders.[1][6]

Why Apply for FHR via Homejourney? Exclusive Benefits

Homejourney prioritizes your safety with verified bank partners (DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank) and Singpass integration for secure, auto-filled applications.[1]

Multi-Bank Magic: One click sends details to 10+ banks—skip branch queues.
Side-by-Side Comparison: View FHR6 vs FHR9 offers instantly.
Eligibility Check: Free calculator factors TDSR, age, income for borrowing power up to 80% LTV.[7]
Status Tracking: Real-time updates in-app, no endless calls.

Users save 20-30% time vs solo applications, per feedback—building trust through transparency.[2]

Link to our Fixed Deposit Pegged Home Loan Explained: Bank Rate Comparison Guide ">FHR Bank Rate Comparison Guide for deeper dives.

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

Follow these actionable steps for approval in 3-7 days:

Check Eligibility: Use Homejourney calculator—input income, CPF, debts.
Compare Rates: Visit https://www.homejourney.sg/bank-rates for live FHR from partners.
Gather Docs: NRIC, payslips (3 months), CPF statements, Form B (for resale).
Apply via Singpass: Auto-fills data; select FHR packages.
Review Offers: Pick best (e.g., DBS FHR6 +1.0%); e-sign legally binding letter.
Track & Close: Monitor in-app; lawyers handle 1-2 week perfection.

Pro Tip: Apply pre-TOP for under-construction properties—spreads drop post-TOP (e.g., 0.75% to 1%). Avoid peak periods (Jan-Mar).[4]

Disclaimer: Rates change; consult Homejourney brokers for personalized advice. Not financial advice.

Documentation Checklist for FHR Approval

ID: NRIC/Passport (Singpass covers).
Income: Latest payslips, tax assessment (IR8A), employment letter.
CPF: Statement from CPF portal (last 12 months).
Property: Option to Purchase, sales docs from HDB/IRA.
Others: Divorce papers if applicable; bank statements for self-employed.

Upload via Homejourney—90% auto-verified for faster nods.[7]

FAQ: Fixed Deposit Pegged Home Loans

What is the current DBS FHR6 rate?
Typically ~1.90% + spread (e.g., 1.25%), totaling 3.15%—check Homejourney for live quotes as banks update monthly.[1]

Is FHR better than SORA in 2026?
Yes for stability if rates plateau; SORA suits if falls expected. Use our chart above.[6]

Can I refinance to FHR via Homejourney?
Absolutely—one application to partners assesses exit fees, new rates.

Eligibility for first-timers?
Income >$3k/month helps; max 4.5x income under TDSR. Try calculator.[7]

How long until approval?
1-3 days for in-principle; full in 1-2 weeks post-docs.

Ready for a Fixed Deposit Pegged Home Loan? Start safely on Homejourney at https://www.homejourney.sg/bank-rates—compare, apply, secure your dream home. Explore properties at https://www.homejourney.sg/search or our pillar on bank loans.