Fixed Deposit Pegged Home Loan Explained: Benefits of Applying via Homejourney
A Fixed Deposit Pegged Home Loan, also known as FHR loan, fixed deposit rate loan, FD pegged mortgage, or stable rate loan, ties your home loan interest to a bank's fixed deposit (FD) rates plus a fixed spread. This provides relative stability compared to market-volatile options like SORA, making it ideal for Singapore buyers seeking predictable payments.[1][2]
This cluster article dives deep into FHR loans, building on our pillar guide Types of Home Loans in Singapore: Complete Comparison & Homejourney Benefits Types of Home Loans in Singapore: Complete Comparison & Homejourney Benefits . At Homejourney, we prioritize your safety and trust by verifying rates from partner banks like DBS, OCBC, and UOB, helping you apply securely via Singpass.
What is a Fixed Deposit Pegged Home Loan (FHR)?
FHR stands for Fixed Deposit Home Rate, pioneered by DBS in 2014 as an alternative to SIBOR-pegged loans. Your total interest rate = bank's FD rate (e.g., FHR6 for 6-month average) + bank's spread (e.g., 1.60%). For instance, DBS FHR6 + 1.60% might yield 3.15% total if FHR6 is 1.55%.[1][2]
Higher numbers like FHR18 mean longer-term FD averages, often slightly higher but steadier. Banks control FD rates, but raising them increases their deposit costs, keeping loan rates competitive. Unlike board rates with full bank discretion, FHR offers more transparency.[1][3]
In 2025, FHR remains popular for under-construction properties, with promotional 2-year fixed rates around 1.30% p.a. before reverting to FHR + spread post-TOP.[1]
FHR vs SORA: Key Differences for Singapore Buyers
SORA (Singapore Overnight Rate Average) is a daily compounded rate reflecting actual bank borrowing costs, now at ~3.641% (Feb 2024 data; check current via Homejourney).[4] FHR uses historical FD averages, smoothing short-term spikes.
| Aspect | FHR (Fixed Deposit Pegged) | SORA |
|---|---|---|
| Peg | Bank's FD rate + spread | 3M/6M compounded SORA + spread |
| Stability | Smoother, less volatile | Market-sensitive, can spike |
| Current Appeal | Lower in low-FD environments | Reflects true costs post-SIBOR |
The chart below shows recent interest rate trends in Singapore:
As seen, FHR often lags SORA rises, offering stability for HDB upgraders or private property investors.[2][4]
Benefits of FHR Loans in Singapore's 2025 Market
- Lower Initial Rates: Banks hesitate to hike FD rates sharply, keeping loans affordable. Example: $400k loan at 1.6% = $1,619/month vs higher SORA.[1]
- Stability for Families: Ideal for first-time buyers in areas like Punggol or Tengah, where budgets are tight amid rising prices.
- Refinancing Edge: Switch from high board rates; Homejourney compares DBS FHR vs OCBC equivalents instantly.
- Under-Construction Perks: Low promo rates pre-TOP, e.g., 1.30% for 2 years.[1]
Homejourney verifies these from official bank sources, ensuring trust. Note: Past zero-spread FHRs are gone; spreads now apply.[2]
Step-by-Step: How to Apply for FHR Loan via Homejourney
Skip bank queues—Homejourney's multi-bank system sends one Singpass application to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank.
- Check Eligibility: Use our free calculator at https://www.homejourney.sg/bank-rates#calculator. Input income, CPF; see max loan (e.g., $800k for $10k/month household).
- Compare Rates: View live FHR, SORA from all partners at https://www.homejourney.sg/bank-rates.
- Apply via Singpass: Auto-fills income/CPF data. One submission gets multiple offers.
- Track & Choose: Monitor status; pick best (e.g., DBS FHR6 +1.25%).
- Close Deal: E-sign with Homejourney support. Timeline: 1-3 weeks.
Documents Checklist:
- NRIC/Passport
- Latest payslips (3 months)
- CPF statements (via Singpass)
- Form 4A/Option to Purchase
- ITR if self-employed
Pro Tip: Apply pre-BTO ballot for edge; avoid peak periods like Jan for faster processing. Homejourney's WhatsApp experts guide HDB/private cases.[2]
Why Choose Homejourney for Your FHR Loan?
Homejourney creates a safe space: Singpass secures data, multi-bank quotes prevent bias, real-time SORA/FHR tracking times your refi. Compare side-by-side, apply once—save hours. For properties, search trusted listings at https://www.homejourney.sg/search. See bank rates guide: Fixed Deposit Pegged Home Loan Explained: Bank Rate Comparison Guide | Homejourney Fixed Deposit Pegged Home Loan Explained: Bank Rate Comparison Guide | Homejourn... .
Disclaimer: Rates fluctuate; not financial advice. Consult professionals. Data from MAS/HDB/banks as of 2025.[4]
FAQ: Fixed Deposit Pegged Home Loan Explained
What is the current DBS FHR6 rate?
Typically FHR6 ~1.55% + spread 1.25-1.60% = 2.80-3.15%. Check Homejourney for live quotes from DBS/others.[1][2]
Is FHR better than SORA in 2025?
FHR suits stability seekers; SORA for low-rate bets. Use Homejourney comparator.[2][4]
Can I use CPF for FHR loans?
Yes, for repayments (2.5% OA rate). HDB loans at 2.6% fixed alternative.[4][7]
How long to get FHR approval via Homejourney?
1-3 days for IP, 1-2 weeks full. Singpass speeds it up.
Refinance to FHR on my resale HDB?
Yes, if LTV/TDSR met. Calculate at our tool.
Ready for stability? Start with Homejourney's bank rates comparison—your trusted path to the best FHR loan. Explore full types in our pillar: Types of Home Loans in Singapore Types of Home Loans in Singapore: Complete Comparison & Homejourney Benefits .
