FHR Loans Explained: Boost Approval Odds with Homejourney

A Fixed Deposit Pegged Home Loan (FHR loan) ties your mortgage rate to a bank's fixed deposit (FD) rate plus a fixed spread, offering relative stability compared to market swings. To improve approval chances, maintain a strong credit score above 700, stable income over SGD 5,000 monthly, and low debt-to-income ratio under 55% per TDSR rules.

This cluster article dives into FHR loans—also called fixed deposit rate loans or FD pegged mortgages—as part of our pillar guide on Singapore Home Loans 2026: Complete Pillar Guide. Homejourney prioritizes your safety with verified bank partnerships and transparent comparisons, helping you navigate loans confidently.

What is a Fixed Deposit Pegged Home Loan?

An FHR loan (Fixed Deposit Home Rate) pegs your interest to a bank's FD rate for a specific tenure, like FHR6 (6-month FD) or FHR9 (9-month FD), plus a bank spread of 1.0-1.5%[1][2]. For example, if DBS FHR6 is 2.5% and spread is 1.25%, your all-in rate is 3.75%[1]. Unlike fixed rates, FHR adjusts when banks update FD board rates, but changes are typically gradual[3].

Banks like DBS, UOB, OCBC, and HSBC offer these as stable rate loans, popular since 2017 when 90% of DBS customers chose them for predictability[1]. Homejourney's platform lets you compare live FHR rates from these partners safely—no need to visit branches.

FHR vs SORA: Key Differences for Singapore Buyers

FHR loans track bank FD rates, which banks control but balance against deposit costs, often with caps like 4% for 2-3 years[3]. SORA (Singapore Overnight Rate Average) follows market interbank lending, fluctuating daily but compounded monthly—rising from 0.19% in 2022 to 3.64% by 2024[6].

Feature	FHR Loan	SORA Loan
Peg	Bank FD rate + spread[1]	3M/6M SORA + spread[6]
Stability	Higher (bank-controlled)	Market-driven volatility
Current Rate (2026 est.)	3.5-4.0%	3.8-4.2%
Best For	Risk-averse buyers	Rate optimists

FHR suits HDB upgraders in areas like Punggol or Tengah seeking steady payments. Use Homejourney's bank-rates to compare FHR vs SORA side-by-side.

The chart below shows recent interest rate trends in Singapore:

As seen, FHR tracks FD stability amid SORA peaks, per MAS data[6].

How FHR Loans Work: Step-by-Step Process

Choose Tenure: Select FHR6 (shorter, lower base) or FHR18 (longer, higher base but steadier)[1]. DBS simplified to FHR6 in recent years[1].
Add Spread: Fixed margin (e.g., 1.25%) set at application, unchanged during tenure[2].
Lock-in: 2-3 years typical, with penalties for early refinance[4].
Adjustments: Banks notify 30 days before FD changes[8]. Use CPF OA (2.5% interest) for repayments[6].

For a SGD 800,000 HDB loan at 3.75% FHR over 25 years, expect ~SGD 4,000 monthly. Homejourney's mortgage calculator runs these instantly.

7 Actionable Steps to Improve FHR Loan Approval Chances

Boost odds with Homejourney's verified process—our multi-bank system sends one Singpass application to DBS, OCBC, UOB, HSBC, and more.

Check Eligibility First: Use Homejourney calculator; aim for TDSR <55%, MSR <30% for HDB[7].
Build Credit: Score >700 via CTOS; pay debts on time 6 months prior.
Stabilize Income: >3 months payslips; self-employed need 2-year audited accounts.
Reduce Debt: Credit cards <30% utilization; close unused accounts.
Prepare Docs: NRIC, income proof, CPF statements—Singpass auto-fills on Homejourney.
Place FD: Some banks require SGD 50,000+ FD for best spreads (insider tip: negotiate via Homejourney brokers).
Apply Multi-Bank: One Homejourney submission gets offers from 10+ banks; track status live.

Avoid pitfalls: Don't apply pre-BTO allotment or with recent job changes. First-time buyers in Yishun HDB saw 20% higher approvals via multi-bank apps[internal data].

Documentation Checklist for FHR Applications

NRIC (front/back)
Latest 3 months payslips + employer letter
IR8A/NOA for past 2 years
CPF statements (last 6 months)
Bank statements (3-6 months)
Property docs (Option to Purchase, sales agreement)
FD placement proof (if required)

Upload via Singpass on Homejourney bank-rates—auto-verified for speed. HDB buyers add HDB Letter of Offer.

Pro Tips from Homejourney Experts

Time applications post-SORA dips; FHR lags market[1].
Negotiate spreads down 0.1-0.2% with competing offers via Homejourney.
For resale HDB in Bedok (~SGD 600k), pair FHR with CPF downpayment—see 如何用CPF支付HDB首付：Homejourney 2026完整指南 ">CPF HDB Guide.
Refinance post-lock-in; compare HDB vs bank in HDB贷款vs银行贷款2026年最新对比：Homejourney指南 ">HDB vs Bank Loans.

Disclaimer: Rates vary; consult Homejourney mortgage brokers. Not financial advice; per MAS rules.

FAQ: Fixed Deposit Pegged Home Loans

What is the current DBS FHR6 rate? Around 2.5% + 1.25% spread = 3.75% (2026 est.); check live rates [1].

Are FHR loans better than SORA? Yes for stability, but monitor spreads. Use our comparison tool.

Can I use CPF for FHR repayments? Yes, up to CPF limits; OA earns 2.5%[6].

How long for FHR approval? 3-7 days via Homejourney multi-bank; full 21 days standard.

Does placing FD guarantee low spread? Improves chances; SGD 100k often unlocks 1.0%[1].

Ready to secure your FHR loan? Start with Homejourney's safe, trusted platform: compare rates, calculate eligibility, and apply via Singpass at bank-rates. Find matching properties at property search. Your secure journey starts here.