At MortgageWise we applaud this move by OCBC which will help to deepen and widen the product offering in the marketplace for home loan solutions with local banks latching on to deposit-based peg for mortgages while their foreign counterparts like ANZ do the same on their slightly higher cost of funds but with lower spreads. In a way it benefits OCBC as the market is now more ready to accept such a product. Riding on greater awareness (how it works) now of deposit-based home loan first introduced and made popular by DBS with its FHR (Fixed Deposit Home Rate) in Jun 2014, it is a strategic move by OCBC to win back market share. One free conversion should the bank move its 36FD MR rate.To keep things simple at the start the bank is offering only one single package based on FDMR as follows: OCBC 36FD MR PACKAGE In a significant move by OCBC this week, it launched its own version of a deposit-based home loan peg called 36 FDMR which stands for 36-Month Fixed Deposit Mortgage Rate, defined as the prevailing rate of OCBC’s SGD 36-month fixed deposit rate for deposits from $5,000 to $20,000.
