When you are deciding on how to finance your mortgage in Singapore, along with the traditional option of a bank, you will come across a mortgage broker as an option for financing. So, who is a mortgage broker and more importantly, should you trust one for your particular situation?
A mortgage broker is an individual or a firm offering loan related products of several different financial lenders. Now, these brokers do not provide the actual funding for your mortgage. They provide services related to advising you on qualification, assisting in selecting the best loan package and in preparing the required documentation.
So, whom should you go with for your mortgage? Here are some the things you need to consider when making that decision.
Going it alone versus getting a helping hand
Should you choose to go it alone, you need to have a good (and long) working relationship with the lending institution for favorable consideration. If, however, you do not have such a relationship with the bank, you will need to look around to find a bank with a deal that works well for you. This can be very laborious and confusing because of all the jargon involved.
With a mortgage broker, you will get assistance in translating this jargon and have the advantage of getting assistance to choose an option that fits you perfectly.
Choices and Options
While there are many mortgage options among lending institutions, the mortgage brokers have more options. This is courtesy of their knowledge of the market trends and understanding of the available options.
They also know which institutions offer the best deals for you, and they are able to direct you there, ultimately saving you some money. They even know about exclusive deals that are not in the public arena that you can take advantage of.
This, however, could play against you if they are friendly with the lending institutions because they may place the interests of the lender ahead of yours.
Convenience versus Cost
There is a cost to the services offered by the mortgage brokers as should be expected. It may be payable by the lender or the borrower or both. If the brokers receive payment from the lender, that could compromise their objectivity when choosing the best package for you. On the other hand, their fees could be quite stiff.
However, considering the hassle of finding the best institution with the best package for you, and the fact that you could get an insider tip on some under-the-radar deals, it might be well worth the cost.
Ultimately, this is not a one-size-fits-all kind of situation so you need to get some good advice and do some research to see what will work best for you.
Last but not least, you could take a Singapore personal loan if you need immediate financial assistance.