DBS has just launched a new fixed rate home loan package that struck all the right chords with us.  There is no catch this time and at such low rates which caught all of us by surprise really just when we think SIBOR is about to move up following renewed talks of rate hike next month.  For this reason we think clients ought to act quickly as it may end just as quickly as it was announced, when the internal quota is met.  Expect that sometimes when things are too good to be true.

You heard it first from us again – DBS has just announced launch of their new promotional packages for the month of June on their DMR (Deposit Mortgage Rate) loan which is pegged to their 18-month fixed deposit rate called FHR18:

What is most interesting to us is the fixed rate package which basically combine the benefits of an attractively-priced low rate for a good 3 years, with that of a constant spread from year 4 onwards at FHR18+1.20 through the rest of the loan tenure.  Over at MortgageWise we have been advocating going fixed not just for 2 years (a-dime-a-dozen from most banks), but go longer for a minimum 3 years if possible to capitalize on the still historically-low interest today, and stand to reap maximum savings as you watch SIBOR goes up over the next 3 years when US Fed tightens monetary supply.

Now at 1.80% for 3-year fixed, it is even lower than most of the 2-year fixed rate out there in the market!  This is a superb move by DBS and we are certain they are going to get market share in June.  The last time 3-year fixed rate went so low (recall 1.68% for 3-year fixed rate, 1.80% is just 12 basis points apart) was easily more than one year ago at the start of 2015!  Once again we say to all our clients, take action do not wait for it may not last, especially when SIBOR starts trending up sooner than you think.

Yes of course it does come with a 3-year lock-in period which is to be expected of a fixed rate mortgage, and one which matches the duration of the fixed term – no issue.  We only have an issue when the package locks a homeowner down for 3 years but during this time the rate is not fixed like your typical board rate package.  The homeowner will then be at the mercy of the lender who has absolute control over the interest during this time and there is no exit.

The new DBS home loan floating rate package on FHR18 remains equally attractive with the constant spread feature which we gave it a thumbs up for quite some months now and which remains our top-selling package for BUC (building-under-construction) loans.  This is especially so for those buying at recent EC and condo launches as there is no fixed rate option for such purchases.

To add to the excitement, we have decided to rollout our “Double Dose Rewards” for all MortgageWise clients who choose to take their loan through us be it new purchase or refinancing in the month of June!  And in order to make sure all our clients do not miss out on this fantastic rate, we will be giving away 2x the usual value of our Tangs voucher under our Reward Programme if they submit their application within 3 days of the first call from our consultant.  So there is nothing to lose but everything to gain now when you take the loan through us – the same package from DBS if you go direct.  Check what we say.  We are here to do long-term business with all our clients.

So get into action today and speak to us regarding your mortgage situation.  Remember we are here to partner with you for your long-term mortgage planning needs and not just a one-off transaction today – that remains the mission of our company.  We will be there for you in 3 years when your fixed rate term ends and should you like to look around again to see what is interesting in the market.  In fact we hope to be the first one to contact you few months before your lock-in expires so you can seize whatever opportunity there is early, just like how you always get the latest scoops from us here – your trusted mortgage professionals at MortgageWise!

At MortgageWise.sg, we seek to provide thought leadership in the area of mortgage planning in Singapore, taking deep dive into market developments & helping clients track interest rate movements.  Make a difference to the way you plan your mortgage today by consulting with a professional whose insights, experience and independent advice you could benenfit from, instead of going directly to the banks for their “standalone” views. We strive to become your first-choice mortgage partner and the creditable distributor of mortgage products for lenders in Singapore.