Top 5 Reasons to use a Mortgage Broker for your Mortgage Loan.

 In Mortgage Loans

Top 5 Reasons to use a Mortgage Broker for your Mortgage Loan.

In most cases, when people purchase their property, they will go through either their property agent or directly through banks for their mortgage loan. Many people are not aware of the service of a mortgage broker and the benefits of engaging one. Some may have heard of a broker but are not sure how they work or how much they charge. In this article, we will clear some of your doubts and share with you the benefits of putting your loan through a mortgage broker.

Did you know that in many developed countries, a large proportion of property buyers engage a mortgage broker when it comes to handling their mortgage matters?

However, in Singapore, the mortgage broking industry is not too commonly known by most home owners.

So what are mortgage brokers?

A mortgage broker is a middle person between a borrower and the financial institution extending the loan. The need for such intermediaries arises from the complexities one will face in search of the most suitable loan packages. A good mortgage broker will be able to advise on the best solution very quickly, even in some cases that may seem outright impossible to begin with. This will result in savings of your precious time and money. Besides the usual assistance with the administrative processes involved, here are some other benefits of going through a mortgage broker.

  1. Expert Opinion

A mortgage broker is experienced and has done hundreds of deals. They understand how banks operate and can ensure that clients do not get taken advantage of by the banks with unfair terms in their loan contract. A professional broker spends their days keeping themselves updated on the latest rates, special promotions, regulatory changes, and market trends. If one tries to do the research on their own, it is often time-consuming and incomplete. Most ordinary buyers may not even have access to certain information, even if they are willing to put in the effort to do their research. Some of this knowledge comes only with experience and a broker will essentially be able to help you obtain the best deals. One example to this is special rates that brokers can get for certain profile of customers.

  1. Saves You Time

A good mortgage broker will usually be linked up with all the major banks and financial institutions. Going through a one-stop comparison site such as will save you a lot of time and effort, especially when compared to calling or visiting each bank one by one. Rather than waiting in the line or chasing for a call back, a broker is often readily reachable, eager to respond to your queries. Also, brokers usually work with more experienced and service-oriented bankers and that makes the loan process a lot quicker and smoother.

  1. Saves you Money

When you have access to all the best deals, you get to save money on your interest payments by being exposed to more offers. Not only do brokers have the same rates as the bank, some will have an even better offer than what you will get directly from the bank due to promotions 

Some people still prefer to approach the bank directly, perhaps because they feel more secure working with an established brand. Many are not aware that by doing so, they will be subjected to biased pitching, as the banker’s job is to recommend their own product. So after spending the time to find out the details of the packages, you need to further spend the time to analyze if the points being brought out to you truly make sense. The same thing applies when you follow your property agents’ recommendation. A large proportion of property agents will just throw you to a couple of bankers they are familiar with, regardless of interest rates, resulting in the customers not getting the best deals out there.

On the other hand, a mortgage broker will generally work on the customer’s side against the bank. This is because it doesn’t matter which bank the customer chooses; the brokers are paid the same referral fee across all the banks. That way, they are able to provide unbiased advice.

  1. Long-Term Relationship

The tenure of a mortgage loan is often a 20-30 year affair. Going through a property agent or a banker will often mean a one-time business. By the time you need to do refinancing 2-3 years down the road, don’t expect your banker or property agent to reach out to you for a loan review. In fact, your banker would probably not be in the same bank anymore. From there on, you will be on your own and have no one to turn to for advice. In contrast, a mortgage broker works by nurturing a long-term relationship, making sure each customer always pays the lowest interest rates. When it is near the refinancing date, you will receive reminders and the best deals for that period, giving you peace of mind when there is a trusted relationship built up over the years.

If you are already comparing interest rates and terms on mortgages across various banks, why not try using a mortgage broker? You may be surprised by the benefits and packages they can offer you. At Home Loan Whiz, all our mortgage brokers are seasoned professionals, with more than $2 billion worth of loans secured for our clients.

If you’re keen to find out more, feel free to speak to one of our expert mortgage advisors by visiting us at (+65) 6631 8980 (main line).

wayne quek
Wayne is a Chartered Financial Analyst (CFA), and holds a Bachelor of Business Management (Finance) from Singapore Management University (SMU). A successful Relationship Manager during his time with DBS and HSBC, Wayne used his expertise in financial markets to help his clients build up comprehensive investment portfolios. The entrepreneur is also the founder of Home Loan Whiz, a mortgage consulting firm that assists clients with selecting ideal mortgages for their needs.
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