Fixed Deposit Pegged Home Loan Explained: FHR Guide by Homejourney

Executive Summary: This definitive guide explains Fixed Deposit Pegged Home Loans (FHR loans, fixed deposit rate loans, FD pegged mortgages, stable rate loans) in Singapore. Learn how they work, compare FHR vs SORA, and make informed decisions with Homejourney's trusted tools for user safety and transparency.

Homejourney prioritizes your financial security by verifying rates from DBS, OCBC, UOB, and more. Compare live rates at Homejourney bank rates and apply via Singpass for instant eligibility checks.

What is a Fixed Deposit Pegged Home Loan?
How Does FHR Work in Singapore?
FHR vs SORA: Key Differences
Advantages and Disadvantages of FHR Loans
Current FHR Rates from Singapore Banks (2026)
Eligibility, TDSR/MSR, and Regulations
Real Calculations and Examples
HDB Loans vs Bank FHR Loans
Refinancing to FHR Loans
How Homejourney Simplifies FHR Loans
FAQ: Fixed Deposit Pegged Home Loans

What is a Fixed Deposit Pegged Home Loan?

A Fixed Deposit Pegged Home Loan (FHR loan, fixed deposit rate loan, or FD pegged mortgage) ties your mortgage interest to a bank's fixed deposit (FD) rates plus a fixed spread.[1][2] Unlike fixed-rate loans, FHR is floating but offers stability as FD rates change less dramatically than interbank rates.

Introduced by DBS in 2014 as an alternative to SIBOR, FHR loans like DBS FHR6 peg to the 6-month average FD rate.[1] The number (e.g., FHR6, FHR8, FHR18) indicates the FD tenure: longer tenures mean slightly higher base rates.[1][5]

Homejourney verifies these rates daily from partners like DBS, UOB, OCBC, HSBC, and Standard Chartered, ensuring you get accurate data for safe decisions. Check Homejourney's bank rates page for real-time FHR updates.

Why FHR Matters for Singapore Buyers

In Singapore's volatile rate environment, FHR provides a stable rate loan option. With SORA at 3.641% in early 2024, FHR stayed lower longer, popular with 90% of DBS customers in 2017.[2][7] For first-time HDB buyers or private property investors, understanding FHR helps navigate TDSR limits.

How Does FHR Work in Singapore?

Your all-in rate = FD base rate + bank spread. For DBS FHR6 + 1.60%, if FD6 is 1.30%, total is 2.90%.[1] Banks adjust FD rates quarterly or as needed, but increases cost them more due to depositor payouts.[1][4]

Example: DBS 2-year promo for new purchases: Year 1-2 at 1.30% fixed, then FHR6 + 1.60%.[1] Spreads are fixed; only FD fluctuates. UOB and others offer similar FD-linked packages.[3]

FD Peg Structure Table

The table below shows common FHR structures:

Bank Product	Peg	Typical Spread	Promo Period
DBS FHR6	6M FD Avg	+1.25-1.60%	2 Years Fixed
UOB FDR	Bank FD Rate	+1.20%	Varies
OCBC Variant	9M FD	+1.30%	1-3 Years

Data synthesized from bank offerings; rates change. Use Homejourney's mortgage calculator for personalized quotes.[1][2]

FHR vs SORA: Key Differences

FHR vs SORA is a top query for Singapore borrowers. SORA (Singapore Overnight Rate Average) is a risk-free benchmark updated monthly (3M/6M compounded).[7] FHR tracks bank FD rates, which lag market shifts for smoother changes.[2]

FHR often starts lower with promos but may cap long-term. SORA rose from 0.19% (2022) to 3.64% (2024).[7] The chart below shows recent interest rate trends in Singapore:

As seen, FHR provides steadier movement vs SORA spikes. Homejourney tracks both for FHR vs SORA comparisons at bank-rates.

FHR vs SORA Comparison Table

Feature	FHR (FD Pegged)	SORA
Peg Basis	Bank FD Rates	Overnight Funding
Volatility	Lower, lagged	Market-driven, higher
Current Typical Rate	FD +1.25% (~3.15%)	3M SORA +0.60% (~4.20%)
Best For	Stability seekers	Cost minimizers

Estimates for 2026; verify on Homejourney.[2][7]

Advantages and Disadvantages of FHR Loans

Advantages

Lower Initial Rates: Often 0.6-1.3% promos vs SORA.[1][2]
Stability: FD rates rise slower; banks hesitate due to depositor costs.[4]
Caps: Many include 2-year caps at 1.8%.[4]
Popularity: 90% DBS uptake in peak years.[2]

Disadvantages

Not truly fixed; rates can rise with FD.[3]
Bank-controlled spreads (1.25%+).[2]
Less transparent than SORA.[7]
Promo ends lead to jumps (e.g., $1,436 to $1,619 monthly).[1]

Homejourney's transparency helps: compare FHR packages safely without hidden fees.

Current FHR Rates from Singapore Banks (2026)

Rates as of Feb 2026 (subject to change). DBS FHR6 +1.25% ~3.15%; UOB FDR +1.20%; OCBC 9M FD +1.30%.[1][2] Full list at Homejourney bank rates, including HSBC, Maybank, CIMB.

Insider tip: Lock promos before TOP for under-construction properties like those in Tengah or Punggol.[1]

Eligibility, TDSR/MSR, and Singapore Regulations

MAS TDSR limits debt to 55% income; HDB MSR 30% for flats.[7] FHR eligibility mirrors bank loans: min 20-25% downpayment, CPF Ordinary Account usage allowed.[7]

ABSD applies: 17% for second properties. Use Homejourney's eligibility calculator with Singpass for instant TDSR checks.

Related: See HDB贷款vs银行贷款2026年最新对比：Homejourney指南 ">HDB vs Bank Loans for full contrast.

Real Calculations and Examples

Example 1: $500k HDB loan, 25 years, FHR 1.6%: Monthly ~$2,237. At 2.2% post-promo: $2,450 (+$213).[1]

Singapore scenario: Buying $1M Punggol BTO resale. 25% down ($250k CPF/cash), loan $750k. FHR6 +1.5% = ~$3,500/month. TDSR compliant if income >$100k joint.[7]

Use Homejourney calculator: Input income, CPF, get FHR projections.

Decision Framework

Assess risk tolerance: Stability? Choose FHR.
Check promos on Homejourney.
Run TDSR sim.
Apply multi-bank via Singpass.

HDB Loans vs Bank FHR Loans

HDB: 2.6% pegged (2026), no lock-in, but higher rate vs FHR promos.[7] Bank FHR: Lower initial, flexible for private/HDB resale. Link: HDB贷款利率变化趋势分析2026：Homejourney深度指南 ">HDB Rates Trends.

Refinancing to FHR Loans

Refi if spread <0.2% gain. Costs: 1.5% penalty, valuation. Homejourney simplifies: Compare, apply to DBS/OCBC/UOB in one go. See property search for refinance timing.