Win with MortgageWise

Win Big With Us On UOB!

Score a BIG WIN this month if you are looking to take up a new loan or remortgage to UOB home loans and you should take your loan through us here at MortgageWise! Here’s why – not only do you get some of the most competitive rates right now, be it for fixed or floating rate home loans, you also walk away with UP TO $750 Tangs vouchers on us (for loans above $1M) in our new Enhanced Rewards Scheme. Only from MortgageWise!

MortgageWise enhanced rewardsEnhanced Rewards UOB - Sep2016

First let’s focus on the more important question (horse before the cart) – why UOB home loans this month?

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Definitely not because of our Enhanced Rewards, which is simply our response to the bank’s “Property Loans Referral Rewards” on its website. We like you to know about it, unlike some of our competitors who are keeping mum, as we seek to work long term with all clients here.

Now back to the question, and the answer is straight-forward – UOB has rolled out two aggressive new packages last week (one fixed and one floating rate package), valid for month of September which got all of us excited. But you need to hurry as the month is drawing to a close.

Shoud US Fed Hike Rates This Week (After Sep FOMC)

At the moment, the market is factoring in only a small chance this would happen, the odds increasing after the latest uptick in inflation figures. Should there really be a quarter percentage increase or 0.25%, 3-month SIBOR will trend up again after staying put at 0.87 for a while, which also means fixed rates would come up fairly soon.

UOB’s new package is one of the lowest 2-year fixed rate now at 1.65% that we recommend you lock in quickly, albeit it is not the absolute lowest in the market. There are three foreign banks with slightly lower average 2-year fixed rate packages at 1.60%. Nonetheless in terms of overall average costs over 3 years, it looks attractive. And we suspect most still prefer to take from a local bank when the difference in rates is not significant.

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Should US Fed Hold Rates This Week

Well should that come to pass, we then expect rates to stay put at current levels for a while longer until the next FOMC in December. At the moment there is a 30% odds that the market is pricing in for a rate hike by December. No one knows for sure. If you refinance now, your loan would probably switch over at around the same time (with a 3-month notice period). How should you decide? Remember the financial markets might go topsy-turvy again should there be “shocks” like a global oil & gas high-yield bonds meltdown, or how about Donald Trump declared the next President of the United States in November?

This is the difficult question. Which is also why in this blog our position since Brexit has been – stay nimble and either go for 2-year fixed rate and take all the guessing work out, or take a chance with floating rates (more for bigger loans) with no lock and presume that rates will continue to languish well into 2017 with global uncertainties not likely to disappear anytime soon. Market does not like uncertainties. We have since June suspended giving our forecast on SIBOR for the next 6 months until US GOP election is over, as we think any such forecast is meaningless. And the best advice we could give now is – Neither lock yourself in too long on high fixed rates, nor sign any floating rate packages that tout incredibly low “headline rates” but with a lock-in period of more than a year! In other words – (repeat) stay nimble. Be ready to respond once uncertainties clear up.

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This brings us back to why we recommend the other UOB new package – 1-month SIBOR + 0.70 throughout. The spread of 0.70 may not be the lowest for first few years no doubt, but there is NO LOCK-IN period, plus it comes with a constant spread of +0.70 from year 1 till the last year which is what we really like. In fact this is the most aggressive “constant spread” SIBOR package we have seen in years. Should rates come up sooner than expected, such low constant spread might not be sustainable and the bank will not continue with this promotion any longer, so…

Take Action Now

Speak to our team of dedicated consultants at MortgageWise, who work for your interests not just once but every time you seek to review one of the biggest cost items in life – mortgage interests! You can have the assurance of working with your trusted consultant who will always share with you all that is out there in the market. We are cutting our business margins to stay afloat this time, and we need all the support we can garner, as we hope to keep this business model going for as long as we can, which can only benefit our clients, consumers and the general public and even the lenders themselves (we hope they see that) as the distribution of mortgage becomes more efficient and effective leading to higher level of satisfaction and less attrition in the long run.

There is no better time to take UOB home loans than now, and there is no better way to take it than through MortgageWise this month – and be rewarded with UP TO $750 Tangs voucher on us. But you need to hurry.

 

At MortgageWise, 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 mortgage products for banks and financial institutions in Singapore.

 

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About Darren Goh

Darren Goh is the Executive Director of MortgageWise.sg, a thought leader in the Singapore mortgage industry, with frequent interviews and quotes by the press - Business Times, Straits Times, Zaobao and EdgeProperty for his views on the latest mortgage trends. He is an avid property investor with careers in banking & real estate before becoming an entrepreneur.
View all posts by Darren Goh

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