Singapore banks have launched various home loans pegged to fixed deposit rates since 2015, which was first launched by DBS. Today, 5 banks, mainly DBS, UOB, OCBC, Standard Chartered and Maybank are competing in the market with their attractive home loans.
Each has its own unique points. How do you distinguish? Let’s look at how each bank define their home loan fixed deposit rates
DBS Fixed Deposit Home Rate 9 (FHR9)
Announced on 1 April 2017, DBS is launching mortgage products pegged to a new base rate, FHR9. DBS defines FHR9 as the 9-month fixed deposit rate for amounts within S$1,000 to $9,999 or such other sum as they may specify. Currently, FHR9 is at 0.50% after a hike.
UOB 14-month Fixed Deposit Property Loan Rate (FDPR14)
UOB defines FDPR14 as the 14-month fixed deposit rate for amounts less than S$50,000 or such other sum as they specify. Currently, FDPR14 is at 0.25% FDPR36 were recently increased.
OCBC 15-month Fixed Deposit Mortgage Rate (FDMR15)
OCBC defines FDMR15 as the 15-month fixed deposit rate for OCBC Bank individual customers for amounts within S$5,000 to S$20,000 or such other sum as may be determined by them. Currently, FDMR15 is at 0.55%. They no longer offer products linked to fixed deposit rates and have increased FDMR.
Standard Chartered 9-month Fixed Deposit Rate (9M FDR)
Standard Chartered defines FDR as the 9-month time deposit rate for an amount below S$20,000 or such other amount as they may specify. Currently, 9M FDR is at 0.30%. Their previous 48M FDR was moved by 0.40%.
Maybank 36-month Fixed Deposit Rate (FDMR36)
Maybank defines FDMR36 as the 36-month Fixed Deposit Rate for at least $1000 deposit and above. Currently, FDMR36 is at 1.40% after a recent change from 1.20%.
Overall Comparison
Table to compare home loan fixed deposit rates side-by-side
Bank |
Home Loan Fixed Deposit Rates |
Current |
Historical High |
Historical Low |
DBS |
FHR9 – 9-month fixed deposit rate for amounts within S$1,000 to $9,999 |
0.25% |
1.5% in 2001 |
0.05% in 2011 |
UOB |
FDPR15 – 15-month fixed deposit rate for amounts less than S$50,000 |
0.25% |
0.5% in 2009 |
0.25% in 2011 |
OCBC |
FDMR15 – 15-month fixed deposit rate for OCBC Bank individual customers for amounts within S$5,000 to S$20,000 |
0.25% |
1.8% in 2005 |
0.25% in 2011 |
Standard Chartered |
FDR – 48-month time deposit rate for an amount below S$20,000 |
0.50% |
1.00% in 2010 |
0.50% in 2011 |
Maybank |
FDMR36M – 36-month fixed deposit rate for an amount from S$1,000 |
1.20% |
5.625% in 1998 |
1.15% in 2010 |
(For those interested in Singapore dollars SIBOR benchmark rates, click here to view the trend.)
Which Home Loan Fixed Deposit Rates should you choose?
Different banks pegs differently with their Fixed Deposit Rate, be it amount and tenor. Anyone who walks to a bank branch and places Fixed Deposit of the specified amount, they will be offered the savings rate as per what is stated above. It’s important to note these fixed deposit savings rate are not promotional in nature, as banks do offer promotions from time to time. When a bank uses their FD rates in their home loan packages, the FD rates will not stay put as the only benchmark indicator for all housing loans in future. For example, previously, DBS offers FHR18 in 2015, and this was 18-month fixed deposit rate for amounts within S$1,000 to $9,999. Now, they are offering FHR9. What happened to those customers who have obtained FHR18-linked home loans? Nothing changes, so long as DBS does not change their FHR18 FD rates.
Other than Maybank, you can see a common trend for the other banks, even though they peg differently, at different amount and tenure. From the graphical FD chart, one thing to note is that the banks decreased their FD rates in 2011, went up a bit in 2012, then remain down or constant till 2017.
What happened in 2011, was when the stock and the financial markets in US hit a downfall macroeconomic crisis. In 2012, the market started to pick up with good returns, and has been stabilised.
Therefore, when you compare, we ask you the following questions:
- Which bank may have the higher probability of increasing their FD rates in 2-3 years time?
- Do the banks have enough funds to support the costs of structures of the bank?
- Based on historical trend, using their highest and lowest peak, which bank might be the least likely to increase to the previous peak?
Contact us today for the best mortgage advice!