When searching for the home of your dreams, the next thing on the mind of most people will probably be how to finance it. A home loan is an important part of completing your property purchase in Singapore, which also happens to be the world’s second most expensive city.
With steep property prices, you may find home loans handy, or even essential, in bringing you closer to your dream home. A suitable loan helps to make sure that you get the most savings and remain comfortably committed for the rest of your financial obligations.
What Makes Advice “Right” in a Mortgage Context?
Reliability
Providing honest and unbiased advice makes up the basics of what counts as being a mortgage advisor. Here, we refer to information tailored to benefit you and your unique financial situation and not for someone else’s profit.
When it comes to obtaining reliable advice in choosing home loans, your mortgage advisor’s experience and relevant industry knowledge matters. For instance, a Mortgage Expert who has been dealing with HDB and private property loans for over a decade would potentially be able to give you more credible and extensive advice compared to one who has just joined the field for two years.
Seasoned industry players would know of the conception that bankers, for example, may be better primed to offer you advice if you have decided on a specific bank to obtain the loan. However, if you have yet to narrow your options on a particular bank, mortgage advisors can give you a more holistic advice on the range of loans offered by different banks.
To give you a better idea of what to look out for, here is a quick checklist when choosing a reliable mortgage advisor for your next home loan:
- Credentials
- Relationship/access to banks/financial institutions
- Years of relevant experience in the field
- Service(s) provided (e.g. if it is a one-stop streamlined service from start to finish for the application process)
- Fees and interests charged (if any)
Relevance
With the fast-changing property market in Singapore, it is crucial to obtain updated advice in line with the latest property measures and regulations. This is because using outdated information may lead to wrong decisions and affect your financial health in the longer term.
For instance, HDB offers various grants and schemes according to an individual’s financial background, age group, and marital status. Knowing which of these grants and schemes you are eligible for can help ease your burden when securing your dream home. For example, if you are a single buyer, you would not qualify for schemes like the Married Child Priority Scheme, Third Child Priority Scheme, and Parenthood Priority Scheme targeted at married couples and couples with children. The opposite is also true if you are married and would not be eligible for schemes designed for singles above 35 years old, such as the Singles Grant and Enhanced CPF Housing Grant (Singles).
In addition, to maintain financial prudence, you may also consider before diving into stocks or property investments if your financial situation does not comfortably allow you to do so. Purchasing a property in Singapore is already a substantial investment, so keep this in mind before adding other financial obligations!
Planning and research are crucial when selecting a home loan in Singapore, especially where property costs lean towards the pricey end. Reliable and relevant information is hence vital, especially if the right advice could have prevented you from overspending in the first place.
Why Does the “Right” Advice Matter?
While there is no single right way to manage your finances, there are certainly some lessons that only experience can teach.
This will allow you to make sound and more informed financial choices in your future property investment while managing your ongoing financial commitments.
In other instances, you may find yourself having to wait a little longer when purchasing a property, such as when home loan interest rates are high, which can leave you feeling a little impatient at times. However, with reliable advice from an experienced mortgage advisor, you will gain a broader perspective on your financial situation and better decide when it’s time for you to enter the market. Why not think about the amount of money you could have saved just on interests alone if you had purchased your property when the interest rates were low.
In addition, you can also speed up the application process with the help of your mortgage advisor with the right advice. As such, you would not miss out on anything critical in the sea of documents during your application as your advisor takes care of all the paperwork and nitty-gritty application detail — imagine the amount of work and time you could save!
Will I Benefit From Getting the “Right” Advice?
Suppose you feel that you are already armed with sufficient knowledge on obtaining a home loan that will suit you best, great for you! But if you are reading this and starting to feel unsure, there is a high possibility that you can benefit from seeking advice in securing your next mortgage. After all, getting a home loan is not the most straightforward process, and obtaining professional advice would be greatly helpful for many people.
Given the sea of accessible information, it can be confusing, especially when they are contradicting. In particular, conflicting advice doesn’t really help, and many people feel overwhelmed, especially from the following groups:
- First-time home buyer
- First-time investor
- Elderly not familiar with digital sources of information
Finding yourself in a home loan that isn’t suited to your needs can have deep repercussions later on. This is why it is crucial to pause and think, as seeking the right advice may just save you a lot of time, effort, and money doing it right the first time.
What Are Useful Sources of “Right” Information?
With the rise of fake news and the spread of misinformation in recent years, it is vital that you obtain your information from credible and legitimate sources. When researching on your own, remember always to verify the source of information and date of publication to ensure that it is reliable and up-to-date.
Here is a quick list of some trusted websites for you to check on the latest procedures and requirements when deciding on your next home loan:
- PropertyGuru Finance services
- Government websites (e.g., Monetary Authority of Singapore, HDB)
- Trusted relatives and friends
In addition, should you decide to follow your friend’s recommendation, take heed of the advice given but keep in mind if it has been tailored to your financial circumstances. For instance, your relatives and friends may provide suggestions on a specific home loan for their property type. Or perhaps, whether their advice would be suitable for you due to your differing financial backgrounds. In both cases, the best option is to obtain relevant advice from credible sources to help you get the bigger picture.
Get It Done Right With PropertyGuru Finance
The final decision on who to seek as your mortgage partner ultimately rests with you, and there are multiple avenues to obtain the right advice for your home loan. While it is normal for some people to feel confused with the influx of information or find themselves having doubts at this point, do remember that you can always reach PropertyGuru Finance for help.
If you do not wish to risk your time, money, and effort from following the wrong or biased advice, why not try out PropertyGuru Finance? Our experienced Mortgage Experts are always ready to provide you smart and honest advice the way you want it. The best part? Our services are free! Don’t hesitate to reach out to our friendly Mortgage Experts anytime you need the right advice for your home loan plans.
Want to save more on your home loan? Compare the best mortgage rates on PropertyGuru Finance, or contact us for more personalised advice and recommendations:
More FAQs on Getting Home Loan Advice in Singapore
What Are the Options When Choosing a Home Loan?
Most people would either apply directly to their bank or get mortgage advice from a mortgage advisor.
Is It Worth It To Seek Advice?
A mortgage advisor could help you save time and money by guiding you through the process and suggesting the best loan for your specific needs.
What Should I Look Out for When Searching For a Mortgage Advisor?
To ensure that you are getting sound advice from a professional, you should learn about your advisor’s credentials, access to banks or financial institutions, and level of experience.
What Kind of Information Can I Expect From a Mortgage Advisor?
Information may vary based on the individual, but most will receive advice on their eligibility for a loan, competitive rates, and assistance with their application process.
What Should I Do if I Am Having Problems With My Home Loan?
When negotiating with your bank fails, you can speak with a mortgage advisor who will try to match you with a bank that may be more comfortable accepting your loan.
