Fixed Deposit Pegged Home Loans Explained: FHR Guide by Homejourney
Fixed Deposit Pegged Home Loans (FHR loans), also known as fixed deposit rate loans or FD pegged mortgages, offer Singapore homebuyers a stable alternative to volatile floating rates. This definitive Homejourney guide breaks down how FHR works, its advantages over SORA loans, current rates from DBS, UOB and more, and practical steps to secure the best deal through our trusted platform.
In Singapore's competitive property market, choosing the right FHR loan can save thousands in interest while providing payment predictability. Homejourney prioritizes your safety by verifying bank rates in real-time and simplifying applications with Singpass integration. Whether you're a first-time HDB buyer or refinancing a condo, this pillar covers everything you need to know.
Table of Contents
- What is a Fixed Deposit Pegged Home Loan (FHR)?
- How FHR Loans Work in Singapore
- FHR vs SORA: Key Comparison
- Advantages and Disadvantages of FD Pegged Mortgages
- Current FHR Rates from Major Banks (2026)
- Eligibility, TDSR/MSR and CPF Rules
- Real Calculations and Examples
- HDB Loans vs Bank FHR Loans
- Refinancing into FHR: Step-by-Step
- How Homejourney Makes FHR Simple and Safe
- FAQ: Fixed Deposit Pegged Home Loans
What is a Fixed Deposit Pegged Home Loan (FHR)?
A Fixed Deposit Pegged Home Loan, commonly called FHR loan or fixed deposit rate loan, ties your mortgage interest to a bank's fixed deposit (FD) rate plus a fixed spread.FHR stands for Fixed Home Rate, pioneered by DBS Bank, where the rate is pegged to specific FD tenures like FHR6 (6-month FD rate).[1][2]
Unlike opaque board rates, FHR offers transparency as banks publish FD rates daily. For example, DBS FHR6 is the 6-month SGD FD rate (around 1.4% as of recent data) plus a bank spread of 1.25-1.3%, totaling about 2.65-2.7%.[2] This makes it a stable rate loan less volatile than daily SORA fluctuations.
Introduced in 2017, FHR gained massive popularity—nearly 90% of DBS home loans were FHR-pegged by then—due to its predictability amid rising rates.[1] Other banks like UOB followed with similar FD pegs. Homejourney tracks these rates live, ensuring you get verified data for confident decisions.
Key terms: FD tranche (e.g., FHR9 for 9-month average), spread (bank's fixed margin, unchanging during tenure), and aggregate rate (FD rate + spread).[1][3]
Why FHR Matters for Singapore Buyers
With SORA at 3.641% in early 2024 (up from 0.1949% in 2022), floating rates have spiked monthly payments.[4] FHR provides a buffer, appealing to risk-averse buyers like HDB upgraders or families budgeting for Punggol or Tengah BTOs.
Homejourney's focus on trust means we verify rates from DBS, OCBC, UOB, and partners, helping you avoid surprises in Singapore's regulated market under MAS guidelines.
How FHR Loans Work in Singapore
Your total interest = Bank's FD Rate (e.g., FHR6 at 1.4%) + Spread (e.g., 1.25%) = 2.65%. The FD component changes when the bank updates rates, controlled indirectly by MAS policy, while spread stays fixed.[1][2]
DBS evolved FHR from averages of 12/24-month FDs (original 0.4%) to simpler FHR6/9/18. Higher numbers (FHR18) mean higher base rates due to longer tenures offering better depositor yields.[1] Existing loans retain old pegs.
Banks publish rates transparently on websites, unlike old SIBOR (daily interbank rate).[2] UOB and others offer similar: e.g., UOB FDR6 + spread.
The Chart Below Shows Recent Interest Rate Trends in Singapore
To contextualize FHR stability vs SORA volatility:
As seen, FHR tracks FD rates more steadily than SORA spikes, ideal for budgeting.
FHR vs SORA: Key Comparison for FHR vs SORA
| Feature | FHR (Fixed Deposit Pegged) | SORA (Floating) |
|---|---|---|
| Peg | Bank's FD rate (e.g., 6-month) | Singapore Overnight Rate Average |
| Volatility | Lower (semi-fixed) | Higher (daily/3M compounded) |
| Transparency | High (published FD rates) | High (public SORA) |
| Current Rate (est. 2026) | 2.5-3.0% | 3.0-3.7% |
| Best For | Stability seekers | Rate fall expectations |
FHR suits conservative buyers; SORA for optimists betting on rate cuts. See Types of Home Loans Singapore: Complete Comparison via Homejourney ">Types of Home Loans Singapore: Complete Comparison for more.
Advantages and Disadvantages of FD Pegged Mortgages
Advantages
- Stability: Less volatile than SORA; FD rates change infrequently.[1][3]
- Transparency: Published daily, easy to track on bank sites.[2]
- Competitive in low-rate environments: Historically lower than board rates.
- Lock-in flexibility: Often 2-3 years, with cashback incentives for new properties.[3]
Disadvantages
- Not truly fixed: FD rate can rise if depositor rates increase.[1]
- Bank-controlled: Spread ensures profit; zero-spread eras ended.[1]
- Higher post-TOP spreads: E.g., 0.75% pre-TOP to 1% after.[3]
- Limited to certain banks: Primarily DBS/UOB styles.
Current FHR Rates from Major Banks (2026)
Rates fluctuate; check Homejourney's bank rates page for live comparisons across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
| Bank | FHR Peg | Spread | Est. Total Rate |
|---|---|---|---|
| DBS | FHR6 (1.4%) | 1.3% | 2.7% |
| UOB | FDR6 | 1.25-1.4% | 2.65-2.8% |
| OCBC | FD Peg | 1.2-1.5% | 2.6-2.9% |
Note: Rates as of 2026 estimates based on trends; verify via Homejourney. Use our mortgage calculator.
Eligibility, TDSR/MSR and CPF Rules
All loans follow MAS TDSR (60% debt-to-income) and HDB MSR (30% for flats). FHR eligibility mirrors bank loans: min. $30k income for private, HDB allows lower.[8]
CPF OA (2.5% interest) can service loans, but you forgo OA interest.[4] HDB loans peg to CPF OA +0.1% (2.6%), fixed forever.[8]
- Age: 21+ Singaporean/PR
- Max LTV: 75-90% for HDB, 55-75% private
- Stamp Duty: ABSD for investors
Homejourney's calculator at bank-rates#calculator computes your limit instantly with Singpass.
Real Calculations and Examples
Example: $800k Tengah BTO, 25-year FHR6 +1.3% (2.7%). Monthly: ~$3,500 (use amortisation formula).
Formula: M = P [r(1+r)^n] / [(1+r)^n – 1], where r=0.027/12, n=300.
Insider tip: For Punggol ECs (~$1.2M), FHR saves $200/month vs SORA at 3.5% peak. Pre-TOP deals often have 0.75% spreads—lock in early.
HDB Loans vs Bank FHR Loans
| Aspect | HDB Loan | Bank FHR |
|---|---|---|
| Rate | 2.6% fixed | 2.5-3.0% floating |
| Eligibility | HDB only | HDB/Private |
| Flexibility | Low | High (refinance) |
Choose FHR for private properties or flexibility. Related: Types of Home Loans in Singapore: Bank Rate Comparison Guide 2026 ">Types of Home Loans in Singapore: Bank Rate Comparison Guide 2026.
Refinancing into FHR: Step-by-Step
- Check eligibility on Homejourney bank-rates.
- Compare rates from 10+ banks.
- Apply multi-bank via Singpass—one form, multiple offers.
- Lock FHR during low FD periods.
- Our brokers guide penalty-free switches.
How Homejourney Makes FHR Simple and Safe
Homejourney builds trust with verified rates, Singpass auto-fill, and multi-bank apps. Compare DBS FHR vs UOB on our bank rates page, search budgets at property search.
Disclaimer: Not financial advice; consult professionals. Rates change; verify live.
FAQ: Fixed Deposit Pegged Home Loans
Q: What is an FHR loan?
A: FHR pegs your mortgage to a bank's FD rate + fixed spread, e.g., DBS FHR6 +1.3%.[1][2]
Q: Is FHR better than SORA?
A: FHR for stability; SORA if rates fall. Compare on Homejourney.
Q: Can I use CPF for FHR?
A: Yes, OA funds service payments, but forgo 2.5% interest.[4]
Q: Current DBS FHR6 rate?
A: ~2.7%; check Homejourney for latest.
Q: How to switch to FHR?
A: Use Homejourney's refinancing tool—Singpass speeds approval.
Ready for your FHR loan? Start at https://www.homejourney.sg/bank-rates. Homejourney ensures safe, transparent journeys.
