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Banks Start To Cut FDR Mortgage Rates

Last Modified On: 3 Oct, 2020

With falling SIBOR, DBS is the first to announce cuts to its popular FHR home loan peg.  It pioneered the use of fixed deposit rate to price DBS home loan since 2014 in Singapore.  Other banks soon followed suit with their own versions which collectively we refer to them as FDR (fixed deposit rate) home loan pegs.  Subsequently some have stopped offering FDR mortgages (see our table below) like UOB home loans and OCBC home loans.

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As thought leader in the mortgage space in Singapore, we track movements on all such FDR (fixed deposit rate) home loan pegs closely through the years be it increases in the past or more likely rate cuts going forward from 2020.  Though SIBOR-pegged home loans are back in demand now with falling interest rates, there are still many customers with mortgages tied to FDR pegs.

DBS has started the ball rolling with announcement of first round of cuts to fixed deposit rates published on its website in March (below). This was followed by another round of cuts which took effect on 4 May to other tranches of fixed deposits.

As DBS, being market leader, often take the lead for any rate adjustments in Singapore be it for mortgages or deposit rates, we expect the rest of the banks to soon follow.

What we do is we will track the movements of FDR home loan pegs in 2020 using our table below.  The current value of all FDR past and present tranches are presented in the table, with provisions to accommodate new values as more banks announce cuts to their fixed deposit rates.  

Note that banks like OCBC, UOB and Maybank no longer offer FDR home loans for new customers.

(what’s announced so far)

BankMortgage PegRate End-2019Latest RateChange ByEffective Date
DBSFHR24NA0.90NilLaunched 1 Jun 2020
FHR80.950.60-0.354 Jun
 FHR91.350.95-0.404 Jun
 FHR181.401.30-0.102 Apr
1.40 (12M)
1.40 (24M)
1.15 (12M)
0.90 (24M)
-0.25 (12M)
-0.50 (24M)

4 Jun
2 Apr
OCBC*15FDMR1.250.20-1.05 2 Nov (Not in use)
 48FDMR1.950.70-1.25 2 Nov (Not in use)
 36FDMR1.550.50-1.05 2 Nov (Not in use)
UOB*14FDPR1.151.15 Nil Not in use
 15FDPR1.401.15  -0.25 Not in use
 36FDPR1.651.15  -0.50 Not in use
SCB36FDR1.37 0.72 -0.65 21 Aug (Prev 10 Jun)
 9FDR1.05 0.50 -0.55 21 Aug (Prev 10 Jun)
 48FDR1.50 0.85 -0.65 21 Aug (Prev 10 Jun)
MAYBANK*FDMR362.05 2.05 Nil Not in use
HSBCTDMR241.45 1.10 -0.35 Unavailable

*OCBC, UOB, Maybank have stopped offering mortgages pegged to FDR.

Since 2014, MortgageWise.sg has provided thought leadership in the mortgage planning space in Singapore, seeking to build trust with clients over the longer term rather than product-peddling for quick one-time deals.  So, be it to refinance home loan, or to buy your next Singapore property, speak to our dedicated team of mortgage consultants here for the best home loan rates.

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