Comparing Singapore Home Loan Fixed Deposit Rates

Posted by Maggie Ang on February 2, 2017

-POP.png

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 0.25%

 

UOB 15-month Fixed Deposit Property Loan Rate (FDPR15)

UOB defines FDPR15 as the 15-month fixed deposit rate for amounts less than S$50,000 or such other sum as they specify. Currently, FDPR15 is at 0.25%

 

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 0.25%

 

Standard Chartered Fixed Deposit Rate (FDR)

Standard Chartered defines FDR as the 48-month time deposit rate for an amount below S$20,000 or such other amount as they may specify. Currently, FDR is at 0.50%

 

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 1.20%

 

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.) 

 FD TREND CHART.png

 

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:

  1. Which bank may have the higher probability of increasing their FD rates in 2-3 years time?
  2. Do the banks have enough funds to support the costs of structures of the bank?
  3. Based on historical trend, using their highest and lowest peak, which bank might be the least likely to increase to the previous peak?

 New Call-to-action

 

Topics: approval in-principle, Home loan fixed deposit rates

Written by Maggie Ang

Testimonials for FAHL

"I am most impressed by Sean's professionalism in assisting to put in place a mortgage plan that totally meets my investment objectives. His enthusiasm and passion for what he does is remarkable. I hope there will be more mortgage brokers like Sean and his colleagues in Singapore." - Ann Tay, Jan 2017"

"I would like to register my compliments for Maggie. I started enquiring about loans since June/July last year and Maggie has been diligent in following up with me and in addressing all my questions. I recently only settled the bank loan. Throughout this period of several months, Maggie has been patient, proactive and prompt.  It is a delight working with her." - Irene

"You have given good advice, Maggie. Your website is the easiest to follow to get list of documents. We prepared according to the website and it is easy for us to understand." - Shally Tan

Subscribe to Email Updates