In this technological age, consumers are increasingly doing their research online before deciding on their purchase decision. While you can obviously compare across pricing for products, shopping for financial services can be a little more complex. When it comes to getting a loan for example, it’s not always about getting the cheapest rate; how much you can borrow, understanding the terms and conditions and avoiding the pitfalls are equally important.
It is no wonder that mortgage brokers continue to provide relevant expertise when finding a Singapore home loan. Not only do you save time, the right broker can also help you save money and provide other intangible benefits at zero cost to you. Here are 7 reasons why a mortgage broker is as valuable as ever:
1. Save Time
Instead of calling or visiting different banks during your lunch hours, why not use a mortgage broker who can present you with the relevant Singapore home loan rates for you? Mortgage brokers work as a first line of filter who can quickly recommend a suitable loan according to your budget, needs, and the best rates available at the moment.
What’s more, they will do the loan application leg work for you as well and advise on which documents you’d need to get ready. Not only does it expedite the process, you don’t even have to step into a bank for the entire loan process.
2. Service is free
Many borrowers have the misconception that going to a mortgage broker require a payment of fees. The fact is the broker works for you, but takes a commission from the bank for a successful referral. As such, there is no fees on your side that are charged. What’s more, since they are not tied to a single bank, there is less incentive to favour a bank over another and recommend a product that doesn’t suit your needs.
3. Possibility of better rates
Most mortgage brokers have good relationships with banks, and can sometimes help you negotiate for a better rate than what you see on websites because some rates are subjected to exceptional approval. Brokers introduce volume of loans each month to banks, which put them in a better position than an individual.
4. After-hour services
Most mortgage brokers understand that their clients are busy professionals who need to work on weekdays; thus, they are happy to come to you at a time that suits you, even on weekends. This is a big difference compared to borrowers having to make time to go to multiple banks during specific opening hours.
5. Better chance of loan approval
Before you even submit a loan application, your mortgage broker will ask you for the applicants’ income information in order to ensure you meet all the qualifying criteria for the bank loan. The mortgage broker will help you calculate your Total Debt Servicing Ratio(TDSR) and/or Mortgage Servicing Ratio(MSR), and advise on ways for you to meet the loan requirements. As such, this reduces the chance of a loan rejection that will prolong the process of your property purchase or refinancing. Likewise, an experienced broker have the knowledge of the policies of each bank. By pre-assessing your documents, the broker would know how to obtain approval, similar to how a lawyer will position your case in a court trial.
6. Avoid possible pitfalls
Locked-in periods, variable rates, prepayment penalties and free insurance offers can cloud your judgement when bankers dangle these carrots/jargon to attract borrowers. Since the mortgage broker has every interest to work on your side, they can help you navigate through the lenders’ fees, terms and conditions to make sure you’re not paying more than you should.
7. Post-loan service
A successful disbursement of a home loan is not the end of your relationship with your mortgage broker. In fact, it makes perfect financial sense to keep in touch since you are likely to require refinancing in the years to come because Singapore mortgage rates typically are low for the initial years. Your broker will have a good sense of the interest rate environment of the moment and help you choose the most suitable loan for refinancing, helping you save thousands of dollars in the process. Additional time is saved because the broker would have your records and able to advise in a quicker manner. If your circumstances change, your mortgage broker can deal with your existing lender or find a new loan to meet your needs as well.
How we can help
At FindAHomeLoan, providing mortgage broking services for property owners is our specialty. Whether you’re looking for a new loan or to refinance, we can provide detailed advice and assistance to help you gain approval for your application. We’ll take the time to understand your circumstances and provide the best mortgage advice.
Contact us now to find out how we can help you!