With UOB joining the ranks of changing from using 36 Months Fixed Deposit Rate to 15 Months Fixed Deposit Rate. UOB call their FD linked mortgage index as FDPR (Fixed Deposit Property Rate). Like DBS FHR9, 15M FDPR would means its is pegged to UOB 15 months fixed deposit rate which is currently 0.25%.
A typical UOB package would look like
Year 1 : 1.03% + 15M FDPR
Year 2 : 1.03% + 15M FDPR
The 1.03% portion is also known as the bank’s margin. This margin will not change at all. The only variable portion is the FDPR itself. When the bank adjusts their FD rate, FDPR will also reflect those changes.
So currently year 1 effective interest rate would be : 1.03% + 0.25% = 1.28%. if the bank adjusted their 15M FDPR to 0.30%, then the effective interest rate becomes 1.33%. The bank will write to you 30 days in advance notifying of the change.
This is how FD-linked mortgages work.
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