DBS FHR-18 Fixed Rate Hike on February 1, 2018

Increase in the fixed rate of fixed domicile DBS FHR-18

It’s official, DBS FHR is in place. DBS increased its FHR-18 fixed rate from 0.6% to 0.8% on February 1, 2018. The fixed rate is linked to the fixed deposit rates that DBS offers to its depositors. FHR-18 stands for Fixed Home Rate indexed to a fixed 18-month deposit. Homeowners who were on FHR-18 + Spread should have already received letters advising them that their mortgage rates will increase by 0.2% in late January or February 2018.

DBS FHR-18 to increase – Queue at DBS ATM in Holland village

DBS ATM – Holland Village agency

Image credits: DBS ATMs and Deposit ATMs in Holland Village, Paul HO, iCompareLoan.com

DBS was the first to launch home loans indexed to fixed deposits

In recent years, the variety of home loan formulas has become more abundant. The Singapore Bank’s product team, in particular that of DBS, rolled out innovative packages one after the other. The DBS bank is one of the most innovative in terms of creating new packages. In 2015, DBS created the fixed rate home loan offer.

For those who are not familiar, here is a link on DBS FHR to do a quick recap of the myriad of packages created by DBS. Of course, OCBC isn’t lagging behind either, they’ve created the OCBC OHR (Ocbc Home Rate) home loan.

DBS Fixed Home Rate is not a fixed rate home loan

The name of the product is a bit unfortunate, in the early days many home owners who took this package thought they had a Fixed rate mortgage package because these packages were called Fixed residential rate. They thought their rates were fixed. These owners are going to have a big surprise.

Of course, some homeowners were either misled by the bankers or they didn’t bother to listen carefully to the banker’s instructions and explanations that this really was not a fixed rate. If they had gone to a mortgage broker instead of going directly to the bank, they would most likely have a better understanding of the package and its risks. Or you can learn about mortgage terminology first.

What are homeowners likely to pay now?

At the time of FHR-18 around, many DBS packages around October 2015 were estimated at around FHR-18 + 1.3% for the first 3 years, then at FHR-18 + 1.5% around; where FHR-18 = 0.6%. It’s around 1.9% and for those who are close to 3 years old, it’s 2.1%.

Estimated date

of the package

Fixed deposit rate reference



Increased FHR-18


FHR-18 to augment

to February 1, 2018

october 2015

DBS FHR-18 (0.6%)




august 2015

DBS FHR-18 (0.6%)




Beginning of August 2015

DBS FHR-18 (0.6%)




october 2015

DBS FHR-12/24 (0.675%)



N / A

Table 1: A Small Cross Section of DBS Fixed Home Rate History, iCompareLoan.com

With DBS FHR-18 dropping from 0.6% to 0.8%, many people can pay around 2.1% to 2.4%.

With the increase in FHR-18, will other rate structures indexed to fixed deposits such as FHR-9, FHR-8 be under pressure? Will they also start to rise?

Refinancing a home loan is one way to lower your interest cost for the next 2-3 years.

To learn more about buying property in Singapore, please click here or click here for the ultimate guide to buying property in Singapore.

DBS publication FHR-18 Fixed Home Rate Rises of February 1, 2018 first appeared on iCompareLoan Resources.

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