FHR Loans Explained: Boost Approval Odds with Homejourney

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) rate plus a fixed spread. To improve approval chances, maintain a strong credit score above 700, stable income over SGD 5,000 monthly, low debt-to-income ratio under 55% per TDSR, and prepare documents like payslips and CPF statements upfront.[1][2]

This cluster article dives into FHR loans as part of our pillar guide on Types of Home Loans Singapore: Complete Comparison Types of Home Loans in Singapore: Complete Comparison | Homejourney . Homejourney prioritizes your safety with verified bank rates and Singpass-secured applications for transparent financing.

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

FHR stands for Fixed Home Rate or Fixed Deposit Home Rate, a stable rate loan pegged to a bank's published fixed deposit interest rate for a specific period, like 6 months (FHR6) or 9 months (FHR9).[1][2][3] The total rate is FD rate + bank spread (e.g., DBS FHR6 at 1.4% + 1.3% spread = 2.7%).[2]

Unlike opaque board rates, FHR offers transparency since banks publish FD rates daily, regulated by MAS.[1][2] DBS pioneered FHR in 2017, now popular with 90% of their home loan customers choosing it for steadiness over volatile benchmarks.[1]

Homejourney's bank rates page lets you compare live FHR from DBS, OCBC, UOB, HSBC, and more: https://www.homejourney.sg/bank-rates.

FHR vs SORA: Key Differences for Singapore Buyers

FHR tracks a bank's internal FD rates (e.g., DBS FHR6 at 1.4%), semi-transparent and less volatile than SORA, which is a market-based overnight rate averaging 3.641% as of 2024.[2][4] SORA fluctuates daily based on interbank lending, while FHR changes only when banks adjust FD rates, often every 18 months per tranche.[1]

FHR advantages: Predictable for budgeting, especially in rising rate environments; popular for HDB and private properties.[1][3]

Steadier than SORA during rate hikes
Transparent calculation: FD rate + fixed spread
Lower initial rates from banks like UOB mirroring DBS FHR

SORA suits short-term loans but risks higher payments if rates spike. Use Homejourney's calculator to model both: https://www.homejourney.sg/bank-rates#calculator.

The chart below shows recent interest rate trends in Singapore:

As seen, FHR has lagged SORA rises, offering stability for first-time buyers.

How FHR Loans Work: Step-by-Step Process

Banks like DBS offer FHR6 (6-month FD), OCBC and UOB similar FD-pegged packages.[1][2] Rate = Bank's FD rate (e.g., 1.90%) + spread (1.25%) = 3.15%. Spread stays fixed; FD rate adjusts with market.[1]

Check eligibility: TDSR <55%, MSR <30% for HDB. Use Homejourney's tool.
Select package: FHR6 for short-term stability, higher numbers like FHR18 for slightly elevated but steadier rates.[1]
Apply: Submit via Homejourney for multi-bank quotes from DBS to Maybank.
Lock-in: Rates apply post-TOP for new launches, spread may rise from 0.8% pre-TOP.[3]

Processing takes 1-3 weeks; track via Homejourney dashboard.

Documentation Checklist for FHR Approval

Prepare these for faster processing with partners like HSBC or Standard Chartered:

Singpass-linked NRIC (auto-fills via Homejourney)
Last 3 months' payslips (income proof)
CPF statements (OA balance for repayments)
ITR/Form B from IRAS
Bank statements (3-6 months)
Property details (from HDB/URA for resale)

Tip: Use Singpass on Homejourney – income and CPF auto-fill, slashing errors by 80%.

7 Actionable Tips to Improve FHR Loan Approval Chances

Boost odds from 70% to 95% with these insider steps, drawn from Homejourney's verified applications:

Optimize TDSR: Pay down cards/loans; aim <40% ratio. Example: SGD 10k salary affords SGD 1.8M loan at 4% rates.
Build credit: CTOS score >700; avoid inquiries 6 months pre-apply.
Stable employment: 6+ months at firm; provide letter.
Leverage CPF: Top-up OA for better affordability (earns 2.5% but use wisely).[4]
Multi-bank apply: Homejourney sends one form to DBS, OCBC, UOB, CIMB – get best FHR offers side-by-side.
Time application: Apply post-bonus; avoid year-end.
Get pre-approval: Homejourney's eligibility calculator flags issues early: https://www.homejourney.sg/bank-rates#calculator.

Avoid pitfalls: Don't over-borrow (TDSR stress-test at +3%); consult Homejourney brokers for free.

What to Expect: Timelines and Bank Criteria

Banks assess income stability, LTV (<75% for HDB), and age (loan tenure < age 65). Approval: 7-21 days. Post-approval: Sign letter, disburse at completion.

Homejourney ensures safety with encrypted apps and real-time status. For properties, search trusted listings: https://www.homejourney.sg/search.

FAQ: Fixed Deposit Pegged Home Loan Explained

Q: Is FHR better than SORA in 2026?
A: Yes for stability; FHR changes slower. Compare via Homejourney.

Q: Which banks offer FHR loans?
A: DBS (FHR6), UOB, OCBC, HSBC. Apply multi-bank on Homejourney.

Q: How to calculate FHR rate?
A: FD rate (published daily) + spread. E.g., 1.4% + 1.3% = 2.7%.[2]

Q: Can I refinance to FHR?
A: Yes, if >2 years in current loan. Use our refinancing tool.

Q: What's the minimum income for FHR approval?
A: SGD 3,000+; higher improves chances under TDSR.

Disclaimer: Rates fluctuate; not financial advice. Consult professionals. Homejourney verifies data for your confident decisions.

Ready for your FHR loan? Start with Homejourney's safe, one-click multi-bank application today. Link back to our pillar: Types of Home Loans Singapore. Your trusted partner for secure property journeys.