What is a Mortgage Broker?
A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or companies that owns residential or commercial properties. They usually work with dozens of lenders, not as employees, but as freelance agents. As different banks and lenders have very different home loan acceptance criteria and coupled with increasingly unique profile and needs of different loan applicants, the idea of engaging a one-stop service provider like a mortgage broker becomes even more popular.
Think of mortgage brokers in Singapore as scouts with the specialist knowledge of a mobile loan banker. They find and evaluate home buyers, understands each borrower's need and credit situation to determine which lender is the best fit for that person's needs. The broker submits the property buyer's application to one or more lenders, and works with the chosen lender until the loan closes.
In Singapore, housing loan applicants usually do not have to pay for any advisory fee to the mortgage broker as the mortgage brokers are remunerated by the banks or lenders through the referral fees program give for each successful application.
The difference between a Bank Housing Loan Specialist and a Mortgage Broker
Traditionally, banks and other lending institutions have sold their own products. However as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. In addition, as different banks and lenders have very different loan acceptance criteria and coupled with increasingly unique profile and needs of different loan applicants, the idea of engaging a one-stop service provider like a mortgage broker becomes even more attractive.
Today in most developed mortgage markets (especially in Canada, the US, the UK, Australia, New Zealand and Spain) mortgage brokers are the largest sellers of mortgage products for lenders. Mortgage brokers exist to find a bank or a direct lender that an individual seeks with a specific loan the individual is seeking. The bank loan officers at a bank or other lending institution are employees who work to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all loans originate from one lending institution. The loan officer takes your application and works to find a home loan that suits your needs. If your personal credit is approved, the officer moves forward to process the purchase.Why engage the services of SMP Mortgage Brokers?
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While using mortgage brokers for housing loans may be more common abroad, home and business owners are increasingly recognizing their importance here in Singapore as well.
A mortgage broker's role involves much more than simply doing the legwork in obtaining a mortgage loan, which is why we prefer the term mortgage broker. It's the balanced approach and mature handling of mortgage fundamentals carried out by SMP Mortgage Broker that often lead to substantial financial savings for our clients. |
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Each SMP Mortgage Broker is expert in narrowing down your best options from an almost infinite selection of interest rate packages and deals across the market. Besides monetary savings, a mortgage broker's advice saves you valuable time as they help you make swift and sound decisions in your best interest.
All the technical aspects of different interest loan packages – whether favorable or disadvantageous – are tackled in detail to analyze which best suits your needs. This prevents you from falling into a debt trap by choosing an inappropriate deal. |
Comprehensive mortgage analysis and recommendation reports
