Why Do Singaporeans Need A Mortgage Broker?

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“If you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.” – John Paulson.

With so many home loans available today, it is essential to engage the services of a mortgage broker and mortgage advisory service if you want to save on the purchase price of your home. As they come at no extra cost, it is a wonder that not many people are consulting mortgage brokers before buying real estate.

Mortgage brokers expend experience, time and effort to obtain the best loans across all banks and financial institutions in Singapore. With their resources, experience, and professional networks, they are better suited to compare and lock down more favourable mortgage rates on behalf of their clients – rates that will save the most amount of money on a loan facility.

Here, we look at other reasons why mortgage brokers are invaluable during a real estate purchase:

They Get the Best Home Loan Rates

No one wants to get a bad deal, especially on a purchase as necessary as a mortgage.

However, without the proper market knowledge, you could find yourself in business with a financial institution that charges exorbitant interest rates, landing you in debt.  With a large number of financial institutions offering mortgage packages in Singapore, this situation could very well happen – if you choose to do it on your own that is.

Here is where mortgage brokers come in – they have the necessary experience in the mortgage industry to advise you on the best loan facilities available. They understand and network with the different financial institutions and compare their interest rates, criteria, tenures, and terms to get you the best deal.

Also, they are wholly independent and so guarantee you unbiased financial advice. Hence, working with mortgage advisors helps you to land the best deal possible.

They Help to Streamline the Application Process

Applying for a home loan can be mind-blogging.

You are required to fill tons of paperwork, much of which you may not immediately understand. Also, making many mortgage applications to the bank could hurt your credit scores, risking future loan accessibility.

A mortgage broker helps you to streamline the mortgage application process, ensuring that you get it right the first time. By studying your credit scores and history, they can pick the right loan packages suitable for you. Plus, they save you much frustration and energy through an efficient and fast application process.

They Save You Time

Because they liaise with financial institutions – many having worked in them before – mortgage brokers offer a bridge between the bank and the borrower that eases the mortgage application process.

They help customers to pick financial products that they qualify for limiting the possibility of rejection.  The reduction of ineligible mortgage applications reduces the bank’s processing burden and overall administration costs.

Brokers ensure that banks receive only quality applications, reducing mortgage processing costs and saving time.

 We are all already so busy in our daily lives. Whatever the application, you do not want to waste your time comparing every minute detail. Time is money – so let mortgage brokers do the legwork for you, so you can better spend your time elsewhere.

They Don’t Cost a Thing

Perhaps this factor is the best reason you should always pick a mortgage broker when buying real estate.

Mortgage brokers do not charge clients a penny for their services, as the banks pay this fee.  So, whether it is a new loan or a refinance, you can count on mortgage brokers to give you the best advice.

Your mortgage broker will also help you to settle issues of valuation, conveyance, lawyer fees, paperwork, and more. And if you have a particular case that limits you from taking up a loan or a considerable sum, mortgage brokers know the way.

They Can Help You Leverage Your Mortgage

If you don’t know much about home loan features, you can easily get overwhelmed.

An experienced mortgage broker can help to set you on the path to understanding home loans and getting to grasp with the small print. They can give you hints and tips on loan features that laypersons may not know.

For instance, they could advise you on offset accounts with credit cards and how they can help you how or how to get a standard loan with a redraw facility for families on a single income.

Bottom Line

Mortgage brokers are invaluable to the process of property acquisition.

They perform a crucial task in the application process and help you to get the best-in-market deals.

If you need a mortgage advisor, at Mortgage Simple, we have a professional team ready and willing to help you. Our advisors have several years’ combined experience working in banks and have retained strong relationships in their networks to get you competitive prices that will benefit you.

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