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

Applying for a mortgage loan in Singapore can often be time-consuming. Learn more about how mortgage brokers can help.
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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 purchase and home loans in Singapore. These loans can take the form of either HDB loans, or a bank loan.

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? Keeping an eye on bank interest rates and competing packages takes up more time than one would think. 

That’s where mortgage brokers can help.

What is a mortgage broker?

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.

Most mortgage brokers are freelance agents of a sort, and usually have a wide network of dozens of lenders. 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 multiple lenders, and the broker will work with a selected lender until the loan is fully paid for.

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 can get mortgage loans 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 can 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 sometimes free

Some independent mortgage brokers earn their money purely through commissions by the lenders. This means that there are mortgage brokers who do 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

Brokers can help you to save money by picking better interest rates for you PropertyGuru Singapore

Brokers can help you to save money by picking better interest rates for you

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

Mortgage brokers cut down the hassle of sending multiple application forms to different banks - PropertyGuru Singapore

Mortgage brokers cut down the hassle of sending multiple application forms to different banks

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 when it comes to the bank’s response. Each application can take up to a week to process, and there is no guarantee of approval even after that. 

By going to a broker, you have 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 as well, which saves you a lot of time from making frequent visits to the bank.

The potential risks of working with a mortgage broker

There are still a few risks to working with a broker, especially if it’s your first time. Since mortgage brokers usually earn money via a commission by the lender, their best interests lie in getting you the highest interest rates possible. That’s why it’s better for you to look for a broker whom you can trust.

One of the better ways to do this is by getting referrals from a trusted source, such as a friend working in real estate. 

Alternatively, you can approach reputable agencies in Singapore, such as Mortgage Sense for help. Do note that some agencies may charge you for their services.

 

To get more guides like this, check out PropertyGuru.

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