Mortgage through a broker – Is it cheaper?
26 MARCH 2021
Mortgage through a broker in Singapore, is it the best option available or can I approach the bank directly. Many of us might have this question and we have tried to explain the pros of approaching a Mortgage loan Singapore broker in this article. Before we step into finding the advantages of approaching a loan broker, if you are a newbie you need to first understand who a Mortgage broker is and how they can help you.
Who is a Mortgage broker?
A mortgage broker is a middleman who is between you and the money lenders. Mortgage brokers help to compare the lenders based on your preferred interest rates and find a suitable match for you. Mortgage brokers have partnerships with money lenders and can also avail some offers and discounts.
What should be my option – Mortgage brokers or Bank?
If you have a good credit history and have strong assets then you could approach the bank directly and save money. However deciding the option of choosing a bank or Mortgage broker completely depends on your choice. If your credit score is not steady and your application has many challenges then it is good to approach a broker. Low interest Mortgage brokers can help to find the best suitable lenders based on your credit score. You can better compare this by getting a loan quote from a broker and a bank and then decide on which works best for you.
Mortgage brokers work with multiple lenders and have access to various products of the lenders, brokers have their price points for the different products, you could choose the best lender who is suitable for your credit/interest value. Your Mortgage broker will help you with multiple loan programs available and you could easily compare all the loan programs. If you are not approaching a broker and wish to do it on your own, then you may have to apply to different lenders, compare the loan programs manually which is time consuming.
Brokers do also offer rebates just like banks that could help reduce your costing, please check with your broker for any rebate pricing available.
How do I pay my Mortgage broker?
Brokers are usually paid by lenders and sometimes by borrowers if the interest rates are low. The fees depend on the broker, it is advisable to check on the fee structure with your broker. Normally it is 1% or 2% of the total value, but it varies. Low interest Mortgage brokers such as Yours Advisory can help you with the loans at a very low interest rate.
Learn More about Mortgage brokers to get a better clarity on how they work and how they could help you with your mortgage. You could also call Yours Advisory for a friendly consultation and we can help you with your mortgage by detailing the price points available with various lenders. The best way to choose a mortgage broker is to check in person about their experience in industry, referrals, track records of the broker, communication and the knowledge in industry.