| 3M SORA | FHR6 | |
|---|---|---|
What is it? | 3M SORA or Singapore Overnight Rate Average is the volume-weighted average rate of actual borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore, published in the last 3 months. | FHR6 or Fixed Deposit Home Rate is a loan package that’s pegged to our bank’s 6-month Fixed Deposit interest rate for amounts within S$1,000 to S$9,999. |
Type of interest rate | Floating; based on overnight interbank borrowing rates and fluctuations are in response to changes to central bank policies and economic factors. | Floating; rate changes are based on the discretion of the bank, in response to market conditions. |
When and where is it published? | SORA rates are published daily on the (MAS) website at 9am. | S$ Fixed Deposit rates are published on our website here. |
FHR is determined by the bank, and historical performance demonstrates notably greater stability compared to the 3-Month SORA rate. This means FHR adjustments have typically been less drastic and have tended to rise at a slower pace
For reference on 3M SORA and FHR6 trend, please refer to the link here.
Eric and Jean, homeowners of a cozy 4-room HDB flat in a mature estate, were feeling the pressure of rising costs of living in the recent years. They were eager for a solution that would lower their monthly mortgage repayments while ensuring they remain protected from market volatility.
They sought the advice of our Home Advice Specialist and was recommended the POSB 5-Year FHR6 HDB Loan with Rate Cap.
They have an existing home loan amount of S$350,000 with another financial institution that has passed the lock-in period with the all-in interest rates hovering around 3.00% p.a.
If Eric and Jean choose to refinance with a POSB 5-Year FHR6 HDB Loan during the promotional period, they will enjoy an interest rate of 1.67% p.a. with the potential to save more when the interest rate drops depending on market conditions. They are also assured that their interest rate will never exceed 2.50% p.a., enabling them to plan their finances with certainty.
Plus, Eric and Jean will also receive a total of S$2,168 in cash rewards for refinancing their home loan by 30 June 2026 (i.e. S$2,000 Refinancing Cash Rewards + S$168 Bonus Cash Reward).
Hafiz and Amira, a young couple who recently purchased their first HDB flat, wanted a loan that would allow them to budget effectively without worrying about sudden increases in their monthly mortgage repayments.
A POSB Home Advice Specialist introduced them to the POSB HDB 3-Year Fixed HDB Loan as it would enable the couple to lock in a fixed rate of 1.70% p.a. for three years while enjoying the flexibility to switch out to a new loan package after this period.
With a home loan amount of S$500,000, they will enjoy savings of up to S$4,500 in interest annually as compared to taking up a HDB Concessionary Loan.