FHR Loans Explained: Fixed Deposit Pegged Home Loan Bank Rates Guide | Homejourney
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 relative stability compared to fluctuating benchmarks like SORA.
Homejourney prioritizes your safety by verifying real-time rates from major banks, helping you compare FHR options securely without leaving our platform. This cluster article dives into FHR mechanics, bank comparisons, and actionable steps—linking back to our pillar guide on Singapore Home Loans: Complete Types and Strategies for full coverage.
What is a Fixed Deposit Pegged Home Loan (FHR)?
FHR stands for Fixed Deposit Home Rate, a stable rate loan pegged to the bank's average fixed deposit rate over a specific period (e.g., FHR6 for 6 months, FHR18 for 18 months), plus a bank spread.
For example, if DBS FHR6 is 1.90% and the spread is 1.25%, your total rate is 3.15%—the FD rate can change when banks update deposits, but the spread stays fixed.[1] Unlike true fixed loans, FHR tracks FD rates, which move slower than SORA, making it popular for HDB upgraders and private property buyers seeking predictability.[2]
Homejourney's real-time tracker on our bank rates page shows live FD pegs across DBS, UOB, and others, ensuring transparent decisions in Singapore's regulated market under MAS guidelines.
How FHR Works: Peg, Spread, and Rate Changes
The formula is simple: Total Rate = FD Peg (e.g., FHR9 at 0.25%) + Spread (e.g., 1.25%).
Higher numbers like FHR18 (0.60%) offer more stability as they average longer periods, ideal if rates rise gradually.[1] Banks like DBS simplified to FHR6 recently, balancing competitiveness with control—FD rates stay low longer, per DBS claims.[1] Caps (e.g., 1.8% for 2 years) provide extra protection.[2]
For a $1M HDB resale loan at 3% over 25 years, monthly payments are ~$4,750. If FHR rises 0.5%, it becomes ~$4,960—less shock than SORA spikes. Use Homejourney's mortgage calculator to model this instantly.
FHR vs SORA: Key Differences for Singapore Borrowers
FHR (FD pegged) offers steadier rates tied to bank deposits, while SORA (Singapore Overnight Rate Average) follows market funding costs, rising faster in hikes (e.g., 3M SORA hit 3.641% by 2024).[4]
- FHR Pros: Predictable (FD rates lag market), popular (90% DBS loans in 2017).[1]
- FHR Cons: Bank-controlled peg, potential for stealth hikes via FD adjustments.[2]
- SORA Pros: Transparent, market-driven.
- SORA Cons: Volatile—see our SORA guide.
Choose FHR for low-volatility periods; SORA if expecting cuts. Compare both on Homejourney bank rates.
The chart below shows recent interest rate trends in Singapore:
As seen, FD pegs like FHR trail SORA peaks, suiting conservative buyers like first-time HDB owners in mature estates like Toa Payoh.
2026 Bank Rate Comparison: Top FHR Providers
Here's a side-by-side of major banks' FHR/FD-pegged offerings (rates as of Jan 2026; verify live on Homejourney). Homejourney aggregates from DBS, OCBC, UOB, HSBC, and more for instant comparison.
| Bank | FHR Peg Example | Typical Spread | Effective Rate | Lock-in | Best For |
|---|---|---|---|---|---|
| DBS | FHR6 (1.90%) | 1.25% | 3.15% | 2-3 yrs | HDB buyers[1] |
| UOB | FDR9 (~2.0%) | 1.20% | 3.20% | 2 yrs | Refinancers[2] |
| OCBC | FD Peg 6M (1.85%) | 1.30% | 3.15% | 3 yrs | Private properties |
| HSBC | FDR12 (2.10%) | 1.15% | 3.25% | 2 yrs | Investors |
| Standard Chartered | FD Base (1.95%) | 1.25% | 3.20% | 2 yrs | Expats |
OCBC and DBS lead for low spreads; UOB for caps. Public Bank, Maybank, CIMB, RHB offer competitive FD pegs for niche needs like shophouses. Rates beat HDB's 2.6% (0.1% over CPF OA) for private loans but check TDSR eligibility.[8]
Insider Tip: For Punggol BTO applicants, DBS FHR6 minimizes TOP surprises—pair with Homejourney's projects directory for unit analysis.
Pros, Cons, and Who Should Choose FD Pegged Mortgages
Advantages: Stability (FD rates rise slower), no SIBOR volatility, promotions like zero-spread historically.[1]
Disadvantages: Bank discretion on FD rates, higher long-term if spreads widen post-lock-in.[2] Not ideal for rate-cut expectations.
- Best for: Risk-averse families (e.g., Bedok HDB upgraders), 70% LTV loans.
- Avoid if: High-risk tolerance—opt SORA via SORA guide.
Disclaimer: Rates fluctuate; Homejourney verifies but consult advisors. MAS regulates all pegs for fairness.
Actionable Steps: Apply for FHR via Homejourney
- Compare: Visit Homejourney bank rates—see DBS vs UOB FHR live.
- Calculate: Use our eligibility calculator with Singpass for instant power (e.g., $800K for $10K income).
- Apply: One-click multi-bank submission—banks compete, you get best offers. Singpass auto-fills for 50% faster approval.
- Refinance: Check penalties; switch if FHR > SORA by 0.5%.
- Track: Monitor via app; pair with property search for budget fits.
Our brokers guide safely—user feedback drives 98% satisfaction.
FAQ: Fixed Deposit Pegged Home Loans
What is the current DBS FHR6 rate?
Typically 1.90% + 1.25% spread = 3.15%; check Homejourney for live updates.[1]
Is FHR better than SORA in 2026?
FHR for stability if rates plateau; SORA for cuts. Compare on our tool.
Can I get FHR for HDB resale?
Yes, all major banks offer; TDSR caps at 55% debt. Use calculator.
How often do FHR rates change?
Quarterly with FD revisions, less volatile than daily SORA.[1][2]
Does Homejourney help with FHR applications?
Yes—multi-bank apps, Singpass, brokers for free guidance.
Ready for stability? Start comparing FHR rates on Homejourney bank rates today. Explore our pillar on Singapore Home Loans for more, including FHR deep dives. Trust Homejourney for verified, safe property journeys.
