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.
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.
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…
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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.
Related article: Lazy to Refinance Your Home Loan? You Could Be ‘Throwing’ Away Hundreds of Dollars Every Month
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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