************ THIS PROMOTION HAS ENDED *************
We are glad to announce yet another exciting promotion for all clients of MortgageWise – our ALL NEW “Enhanced Rewards” Programme. In response to UOB’s ongoing “Property Loans Referral Rewards” on their website, and after some persistent feedback from clients asking for us to respond, we have decided to bite the bullet and match the same scheme for those taking UOB home loan packages through us.
To keep it simple, we are offering only two-tiers as follows:
In order to match, we are cutting our margins down in a big way, hence we need to enforce our promotion terms and conditions strictly and the enhanced Tangs vouchers will be accorded based on the promotion end date of 30 Sep 2016, the final date where the Offer Letter must be accepted and signed, unless the promotion is extended for another month, which will then be updated in our Rewards page on our website. Clients should check back before they decide if they could still make it in time to apply for their UOB home loans through MortgageWise.
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Why Are We Doing This?
This is the not the first time that we are doing this. We recognize it is the lender’s prerogative to offer some kind of rewards to clients who apply direct to them for a mortgage, instead of going through an intermediary like a property agent or an external distributor like us, in which case the bank will then need to pay a distributor fee. Either way however the interest rate and features of the loan package remain identical which is the most important.
In such an instance, we see it as only right to inform all our clients about such “direct-to-bank” offers the moment we come to know about any such offers from the panel of banks we work with. We know some of our competitors may not see that as a duty as they are not paid to “advertise” for such direct offers in the first place.
However at MortgageWise, we take our commitment and promise to our clients very seriously and we beg to differ. We will not allow our clients to lose out in any way when they place their trust in us and in our recommendations. We will always stay transparent and inform them of any other potential offers they need to know even when we are not paid to distribute them. When such direct offers are not quite as good, we tell them so. But when such offers are deemed fairly attractive, we have no choice but to respond to the best of our ability, and finding a way to stay afloat amidst razor-thin business margins.
By taking a steep cut in our margins, we are really not making much from these transactions. We can only hope that in due course we will be rewarded with some referral business and our clients would reciprocate with continued trust and support as they understand what this company stands for and how we choose to conduct our business.
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Are We Recommending UOB Packages Over The Rest?
No certainly not. We are an independent mortgage advisory firm and we need to stay independent and objective. We are only offering this in response to UOB’s referral scheme currently on their website and for our clients who, after going through their needs and objectives with our consultants, opt for UOB packages. UOB packages may or may not be the right solution for everyone. Speak to our mortgage consultants who can go through with you our comprehensive list of packages and tell you what works best in your case.
However at the point of writing this, UOB does have the lowest 2-year fixed rate in the market at 1.51% and 1.65% which works out to an average of 1.58% over two years. This package is scheduled to end by next week and all applications (full set of documents) need to come in latest by 14 Sep. The bank may or may not extend the promotional rates we will have to wait and see. For those who are more keen on fixed rates we urge you to take action now.
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Why Are We Not Extending “Enhanced Rewards” To Other Banks?
The truth is we can’t. We need a certain business margin to sustain ourselves as a viable business so that we can keep this partnership going for the long haul and for greater good of our clients and employees. Already we have seen our distributor fees (our main and only source of income at the moment) being cut and slashed by banks from time to time. Fixed operating costs and overheads are rising over the years as the company grows and we need to keep and retain the best people – your trusted mortgage consultants, and the commissions paid out to them are sources of income. We do believe we deserve to earn our keeps for the good work we do, and we hope our clients will be behind us.
Against this backdrop we find ourselves struggling to deliver on our promise of transparency and always putting client’s interst first and employee’s interest second, when banks keep introducing various schemes that take businesses away from us. We can only hope that over time lenders here, just like their counterparts in UK and other advanced economies, begin to see the true benefits of leveraging on an external intermediary network that will prove more efficient and cost-effective in selling their mortgage products, compared to a proprietary sales force that comes with much higher fixed costs.
What You Should Really Focus On
As the old adage goes – do not put the cart before the horse. So do not be distracted by promotional mechanics bandied about by banks from time to time. Focus on your personal situation, financial objectives and the bigger picture as far as interest movement is concerned. Picking the right home loan package be it for a new purchase or refinancing, so that you do not end up paying more costs refinancing it later or too soon, is more critical than how much shopping vouchers you will get. To this end, we pride ourselves in always dispensing the most comprehensive, impartial and in-depth analysis on mortgage planning in this blog and our team of dedicated mortgage broker will continue to assist all our clients in making the right decisions.
Do speak to us today. You have nothing to lose working long term with what I like to believe is the most honest and transparent team of advisors in this business.
At MortgageWise.sg, we seek to provide thought leadership in the area of mortgage planning in Singapore, taking deep dive into developments and news on mortgages & helping clients track interest rate movements. We do not just go for one-time business with clients but rather choose to build long trusting relationships by giving truly independent advice to the extent of losing the deal. We strive to become the first-choice mortgage partner for homeowners and the creditable distributor of home loans Singapore.