How A Mortgage Broker Can Help You Get a Home Loan in Singapore (2023)

PropertyGuru Editorial Team
How A Mortgage Broker Can Help You Get a Home Loan in Singapore (2023)
Most of the time, people conduct quite a bit of research when it comes to buying things that cost a lot of money. It’s crucial if you want to save money – after all, the slightest variation in percentage can save you thousands of dollars.
It’s the same thing when it comes to property purchases and home loans in Singapore. These loans can take the form of either HDB loans or bank loans.
But with the many different banks out there, how would you know if you’re really getting the best option available to you? For that matter, how would you know when the best time to refinance your home loan is? Furthermore, interest rates have been increasing with the latest hike rate being 75-basis-point, making it the greatest interest rate hike since 1994.
Keeping an eye on bank interest rates and competing packages take up more time than one would think. That’s where mortgage brokers can help.

Who Are Mortgage Brokers?

Mortgage brokers are professionals that deal with mortgaging and loan financing, and act as an intermediary between borrowers and lenders.
For a small fee, brokers help borrowers to find the best available deal from their pool of lenders. Some of them even work at no cost to the borrower.
Mortgage brokers may be freelance agents, but they may also be part of a wider brand (that are not (or a part of) lending institutions), like PropertyGuru Finance. After finding and evaluating someone looking to take out a home loan, brokers will analyse the person’s credit situation. This gives them more information on their financial abilities and what kind of loans they are eligible for.
The loan application will then be sent to the borrower’s preferred lenders, and the broker will work with a selected lender to secure the loan.
If you were to work with a mortgage broker to find a suitable loan, chances are high that you will save more money than doing your own research online.

How Can a Mortgage Broker Benefit You?

Similar to how most people go to travel agents to find better prices for airline tickets, going to a mortgage broker in Singapore can help you find better interest rates on a loan. There are also certain ways that mortgage brokers can benefit you, such as…

You May Be Able to Get A Mortgage Loan Despite a Poor Credit Score

If you haven’t been paying your debts on time, you might not be able to make use of your credit score to secure larger bank loans. A good broker may be able to circumvent that by looking for lenders who are willing to trust you; most banks will not take this chance.

A Mortgage Broker’s Services Are Usually Free

Most mortgage brokers earn their money purely through commissions from lenders. This includes PropertyGuru Finance, which does not charge you for their services at all.

You Can Get Loans for Non-residential Property Types

If you’re looking for a loan for commercial properties, or for unique properties like shophouses, it might be difficult to secure a bank loan.
This is because not every bank will offer you mortgage options for such properties. On the other hand, a mortgage broker may know a lender who deals specifically with niche requests and can act as an intermediary for you.

Expert Advice and Industry Knowledge

Mortgage brokers often have a good understanding of how the property market moves. This means that they will be able to advise you on the best options to take after considering your current and future financial status.
You don’t even have to use a Singaporean mortgage broker. If you want to invest in Australian property, for example, there are mortgage brokers who can find good deals for you as well.

Save Yourself a Lot of Hassle

One of the most time-consuming parts of applying for a loan is finding out all the documentation you need to apply for each individual bank.
Another hassle would be the amount of waiting time for the bank’s response. Each application can take up to a week to process, and there is no guarantee of approval even after that.
Going to a broker gives you quick access to the lenders themselves, which can shorten your application period by a few days. The broker will often settle most of your paperwork for you, which saves you a lot of time from making frequent visits to the bank.

Ready to Speak to A Mortgage Broker?

One of the better ways to access expert mortgage brokers is through a trusted source, such as PropertyGuru Finance for help.
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Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More FAQs About Mortgage Brokers in Singapore

A mortgage broker can provide financial guidance and advice, especially if you find it hard or confusing to keep up with the bank interest rates.

Mortgage brokers are professionals that deal with mortgaging and loan financing, and act as an intermediary between borrowers and lenders. Lenders would be financial institutions like banks.

Most mortgage brokers, like PropertyGuru Finance, do not charge you for their services at all. They earn commission from the lenders instead.

There are many types of home loans in Singapore. You can get a loan from HDB or other financial institutions like banks. For bank loans, there are fixed rate and floating rate loans.