Should you take out a home loan through a mortgage broker in Singapore?

A customer sharing her home loan plans with a mortgage broker in Singapore

Should you take out a home loan through a mortgage broker in Singapore?

Getting a home loan in Singapore can be hard. The sheer amount of paperwork, fees and the number of people involved is a consuming exercise that can be mentally and psychologically draining. Having thoughts about “just getting all this over and done with” is only natural. 

However, as it’s going to be a significant financial commitment each month, it would be a good idea to not give in to the temptation to rush and sign everything before getting some trusted advice.

Before committing yourself to a lender, it might be worthwhile to engage a mortgage broker in Singapore to walk you through the process. In this article, we share how a mortgage broker can help you get a home loan in Singapore.

What is a mortgage broker? 

Mortgage brokers, otherwise known as loan brokers, are well-versed with mortgaging and loan financing. 

They act as intermediaries between borrowers and lenders and have access to hundreds of loan packages across most financial institutions

They help borrowers find the best available loans from their pool of lenders. With their wide network, they can find and evaluate which packages are suitable for you based on your financial situation and needs. 

How a mortgage broker in Singapore can help in your search for a home loan

There are 3 areas where getting a mortgage broker in Singapore would be particularly helpful.

1. A mortgage broker can shortlist the best home loan for you 

Home loans today are no longer just about signing up for 20 years and making regular loan payments. Neither is it just about trying to pay off the mortgage as quickly as possible.

Determining the best home loan is highly dependent on your own personal circumstances and requirements. While it’s tempting to make the decision purely based on the interest rate, there can be added value in other features as well, such as flexibility, loan terms, and repayments plans.

A mortgage broker will be privy to the most current range of loan options available in the market and can help you shortlist the most viable option to meet your financial needs. 

Sometimes, the best home loan rates for your needs may not necessarily be as advertised online. This may be arranged by contacting a lender and/or a mortgage broker directly to convey your needs.

A mortgage broker can also help negotiate with a lender if you’re looking to refinance or take out a new loan.

Find out all about cash-out refinancing here. 

2. A mortgage broker can provide guidance and support throughout the process 

A mortgage broker guiding a customer through his home loan options on a laptop

While there are many loan comparison websites and D-I-Y home loan calculators available online to help you get a rough gauge of your loan eligibility and repayment capacity, you should note that these calculations are based on a general industry-wide formula. There’s a high chance that they would not have addressed all your financial considerations. 

Read more TDSR and MSR here.

Mortgage brokers have a good understanding of the current situation of the property market. Engaging one that’s fluent with the nuts and bolts of the construct of the various home loan types will be a useful resource in your decision-making process. 

They’ll also be able to help you work through your preference for a fixed or variable interest rate on your home loan. As you consider taking full advantage of the current low SIBOR to refinance your home loan, it would be worthwhile to have a mortgage specialist help you evaluate the features and potential benefits.

Learn more about SIBOR and other common loan terms here.

The refinancing process does come with a whole range of home loan fees out there that can be charged by different lenders. 

Sometimes these fees are packaged within the home loan offer, other times they are featured on the side. Either way, these fees are present, and a mortgage advisor will be able to point out which potential loan options offer fair value. 

The home loan market is crowded and competitive. Having an expert pair of eyes to sniff out home loan rates that come with a catch, could yield substantial savings. After all, you don’t want any rude surprises on a price tag of this size. 

3. A mortgage broker can get it all done for you

A couple looking through some paperwork for their home loan application with a mortgage broker in Singapore

With all great plans, the prize is in the implementation. A mortgage advisor can help see you through the entire loan process. 

We all know that one of the most time-consuming parts of applying for a loan is all that paperwork. With a mortgage broker, your application period can be shortened. Your broker can settle most of the paperwork for you, and save you time from making multiple trips to the bank. 

Benefits and drawbacks of engaging a mortgage broker in Singapore to help in your search for a home loan

To help you weigh in on whether you should engage a mortgage broker in Singapore for your home loan, here are the pros and cons:

Has access to more lenders to compare loansMay not have access to all lenders, as not all lenders work with brokers
Will help you get the best rate based on your financial situation and requirementsMight be difficult to find a good loan broker dedicated in helping you to get  the best deals
Can consolidate suitable plans for you and provide expert advice
Can help to reduce your workload and speed up the loan application process
Provides a one-stop-shop solution

Getting a home loan in Singapore with FinanceGuru

Here at FinanceGuru, we seek to help you better prepare for your finances and the upcoming milestones in your life. 

You can depend on our mortgage specialists to guide you from start to finish. Our team will take care of all cumbersome paperwork, loan submission and the appointment of a legal firm. Moreover, our work does not end after the completion of your loan application. We’ll assign a relationship manager to help you with your requirements throughout your mortgage life cycle. 

Learn more about optimising your home loan and uncover hassle-free ways that will save you time and money. Get a non-obligatory assessment and loan product recommendations today. 

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