Buying a home in Singapore can be a complicated, time-consuming and an incredibly expensive affair. In fact, it’s safe to say that buying a home will probably be the biggest purchase you’ll ever make.
But before you walk into the nearest branch of your “preferred” bank to meet with a loan officer, here is a better alternative that can also save you time and money!
Why you should apply through an online mortgage broker
When it comes to buying a home, far too many people make the mistake of trusting a property agent or bank officer when they say you’ll get the “best home loan package” by applying with them.
Sadly, it’s a mistake that can cost you thousands of dollars during the first three to four years of your mortgage – because you decided to trust the words of a sales representative instead of doing your homework by comparing home loan packages.
But there’s a better option to obtaining your mortgage aside from accepting the “trusted” recommendation of a bank officer or property agent – that option is an online mortgage broker.
Here are several major advantages to obtaining your home loan through a reputable online mortgage broker:
- Unbiased comparison: Bankers only offer their bank’s mortgage deals and property agents may be biased in recommending a particular bank’s loan package based on referral fees. Online mortgage brokers on the other hand show loan packages offered by multiple banks and offer unbiased advice on which are the best.
- Expert consultation: Many online mortgage brokers have loan specialists who are ex-bankers experienced in helping customers throughout the entire loan application process. That means you can expect consultation on everything from loan affordability calculation to submitting and closing your loan application.
- Concierge service: The process of applying for a mortgage can be tedious and confusing due to the amount of loan paperwork and document collection you’ll need to do. But a reliable online mortgage broker will provide concierge service when it comes to collecting and submitting loan documents, and following up with the lender on the application’s status.
Why choosing the best mortgage save you money
The challenge of home ownership in Singapore lies primarily in being prepared to handle the financial risk of making such a costly purchase. As a prospective homebuyer, you simply cannot afford to get suckered into a bad property deal. You need to base your property purchase on careful research and value rather than on emotion and impulse — and that’s including getting the best mortgage deal too!
Here’s the difference you will be paying with just 0.98% less in interest rate:
Property price: S$1,200,000
Down payment: 20% or S$240,000 // (5% in cash = S$60,000 and 15% from CPF = S$180,000)
Margin of finance: 80% or S$960,000
Interest rate quoted from ‘preferred’ bank A: 2.18% FIXED for up to 5 years
Loan tenure: 30 years
Fortunately, this is just a simplified example. Otherwise you would probably be banging your head into a wall over the thousands of dollars you would have lost as a result of not comparing all home loans to find the one with the lowest rate. The best way to do that without spending days or even weeks visiting several banks, is to go through an online mortgage broker.
As you can see, there are plenty of benefits to using an online mortgage broker, especially when it comes to saving time and money. But the best benefit to using reputable online mortgage brokers like iMoney.sg is that the service is completely free. That’s because most online brokers only earn a small referral fee from the banks when a mortgage deal closes.
So before you or someone you know decides that it’s time to settle down and buy a property – don’t forget to check out an online mortgage broker to make sure you’re getting the best possible mortgage deal available.
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