Fixed Deposit Pegged Home Loan Explained: How to Improve Approval Chances

To improve your approval chances for a Fixed Deposit Pegged Home Loan (also called FHR loan or fixed deposit rate loan), maintain a strong credit score above 700, stable income over SGD 5,000 monthly, low debt-to-income ratio under 55% per TDSR, and pledge a fixed deposit of at least SGD 50,000 with the bank.[1][2]

Homejourney prioritizes your safety by verifying lender details and offering a trusted multi-bank application platform. This cluster dives into FHR specifics, linking back to our pillar guide on SORA Home Loans Singapore: Complete Guide by Homejourney for broader mortgage education.

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

A Fixed Deposit Pegged Home Loan, or FHR loan, ties your mortgage rate to a bank's fixed deposit (FD) interest rate plus a fixed spread. For example, DBS FHR6 + 1.25% means the rate is DBS's 6-month FD rate (say 2.90%) plus 1.25%, totaling 4.15%.[1][2]

Unlike SORA loans pegged to market interbank rates, FHR follows the bank's FD rates, which banks control but balance against deposit costs. Popular with DBS and UOB, FHR offers relative stability as FD rates change less frequently than SORA.[1][2][4]

The 'FHR6', 'FHR9' etc., indicates the FD tenure: higher numbers like FHR18 mean longer-term rates, often higher (e.g., DBS FHR9 at 0.25% vs FHR18 at 0.60%).[1]

FHR vs SORA: FHR is a stable rate loan with bank-controlled pegs and possible caps (e.g., 1.8% for 2 years), while SORA fluctuates daily based on market. FHR suits risk-averse buyers; SORA offers transparency. See our SORA Linked Home Loans Explained: 2026 Bank Rates Guide for comparisons.[4]

Current FHR Rates from Singapore Banks (January 2026)

As of January 2026, typical FHR rates include: DBS FHR6 +1.25% (~4.15%), UOB FDR9 +1.20% (~4.10%), OCBC FD peg +1.30% (~4.20%). Spreads start lower pre-TOP (0.80%) for under-construction properties, rising post-TOP.[1][3]

Banks like HSBC, Standard Chartered, Maybank also offer FD-pegged options via Homejourney partners. Rates fell from 2024 peaks but remain above 4% amid steady SORA at ~3.0%.[4]

The chart below shows recent interest rate trends in Singapore:

As seen, FD rates track SORA loosely but with less volatility, making FHR a FD pegged mortgage choice for steady payments.[1][4]

Step-by-Step: How to Apply for FHR Loan & Boost Approval

Follow these actionable steps on Homejourney for higher approval odds:

Check Eligibility First: Use Homejourney's free calculator at https://www.homejourney.sg/bank-rates#calculator. Input income, CPF, debts – aim for TDSR <55%, MSR <30% for HDB.[6]
Compare Rates Safely: Visit https://www.homejourney.sg/bank-rates to view live FHR from DBS, OCBC, UOB, HSBC, etc. Homejourney verifies rates daily for trust.
Prepare FD Pledge: Deposit SGD 50,000+ in the bank's FD (e.g., DBS 6-month). This signals commitment, improving odds by 20-30% per broker insights.
Apply via Singpass: One-click on Homejourney sends to 10+ banks (DBS to Citibank). Auto-fills income/CPF – approvals in 1-3 days vs weeks solo.[Homejourney]
Submit Docs: See checklist below. Track status on Homejourney dashboard.
Negotiate Offers: Compare side-by-side; pick best spread/cap. Refinance later if rates drop.

Timeline: Pre-approval 1-3 days, full approval 1-2 weeks. Avoid pitfalls like multiple solo apps hurting credit.[1][2]

Documentation Checklist for FHR Approval

NRIC (front/back)
Latest payslips (3 months), employment letter
IR8A/NOA (2 years)
CPF statements (6 months)
Bank statements (6 months)
Fixed Deposit proof (min SGD 50k)
Sale/Option to Purchase
Existing loan statements (if refinancing)

Get docs via Singpass/MyInfo for instant upload on Homejourney. Pro tip: Clear debts first; scores >750 get 0.10-0.20% better spreads.[6]

7 Pro Tips to Improve FHR Approval Chances

Build FD Relationship: Existing DBS/OCBC customers get priority; pledge larger FD for lower spreads.[1]
Time Application: Apply post-bonus; track SORA/FD via Homejourney for low-rate windows.
Lower DTI: Pay off cards; TDSR calculator on Homejourney bank-rates shows exact borrowing power.
Joint Applications: Couples boost income; HDB upgraders use CPF OA strategically (2.5% interest).[4][6]
Avoid New Credit: No new loans 6 months pre-app.
Choose Right Peg: FHR6 for short-term stability vs FHR18 for longer.[1]
Leverage Homejourney Brokers: Free guidance post-application; multi-bank submits raise offers by 15%.

Real example: A Tampines HDB upgrader with SGD 8k income, SGD 60k FD got DBS FHR6 +0.95% via Homejourney, saving SGD 200/month vs SORA.[Homejourney data]

What Banks Assess for FHR Loans

Banks evaluate income stability (min SGD 4k), age <65 at tenure end, LTV <75% (HDB), credit bureau score, and FD pledge. MAS TDSR caps serviceability; approvals dip if over 55%.[6]

Homejourney's platform skips one-by-one apps – one form to DBS, UOB, Maybank, etc., with real-time tracking for faster, safer process.

FAQ: Fixed Deposit Pegged Home Loans

What is the difference between FHR and SORA loans?
FHR pegs to bank FD rates (stable, bank-controlled); SORA to market average (transparent, volatile). FHR often has caps.[1][4]

Which banks offer FHR/FD pegged loans in 2026?
DBS (FHR6/9), UOB (FDR), OCBC, HSBC. Compare on Homejourney.[1][2]

How much FD is needed for better approval?
SGD 50k+; larger pledges lower spreads. HDB buyers: use CPF top-up first.[1]

Can I refinance from SORA to FHR?
Yes, if >2 years in, low penalties. Check Homejourney refinancing tool.

Is FHR fixed forever?
No, FD base changes quarterly; spread fixed. More stable than SORA.[2]

Disclaimer: Rates change; not financial advice. Consult Homejourney brokers or advisors. Homejourney verifies data for your safety.

Ready to apply? Start at https://www.homejourney.sg/bank-rates – compare FHR rates, calculate eligibility, and submit via Singpass today. Find properties in budget via https://www.homejourney.sg/search. For full guide, read our pillar on SORA loans.