Ravi Chandran
There is such a thing as a best home loan rate, but it is very personal and subjective
What is the best home loan rate?
Mr Paul Ho, chief officer at iCompareLoan, said: “There is a best home loan rate for each and very person, but it is very personal and subjective. What is deemed as ‘best’ by one home buyer may not be thought of as the same by another.”
The wide selection of mortgage products available today means that consumers can enjoy incredible choice, and this choice increases the chances of getting a great value home loan.
A fixed interest rate package is usually higher since you are paying a premium for stability. This is viewed as the best package for someone who is risk-averse but might not be the best for someone who is willing to take a little more risk and enjoy more savings with a floating rate package.
To find the best home loan rate you must be willing to spend hours and hours trawling through the best mortgage deals from various banks, and while you are busy trying to interpret the financial jargon that many lenders may throw at you, another buyer could snatch the house of your dreams from under your nose.
The other downside to going it alone when looking for a suitable mortgage is the time that it can take. With the pace of life as it is today, many of us barely have time to sit down and enjoy a little quality time as it is. Spending hours glued to the computer or ringing around various lenders is something that most of us can well do without.
If you go directly from lender to lender to get your mortgage, you will end up having to complete a new application for each lender, which can waste a great deal of time. Additional time will be taken up with browsing and comparing all the different deals with each lender, and then comparing the lenders against one another.
Should I use a mortgage broker to get the best home loan rate?
Using a mortgage broker is an effective way of getting a mortgage package to suit your needs without having to commit hours of your time to searching and browsing. When you use a mortgage broker service, you will simply be cutting out all of the time and work involved in finding a mortgage to suit your circumstances — and it will not cost you a cent to do it.
A good mortgage broker service will be able to source a wide range of mortgage deals on your behalf, and will then put forward the ones that offer the best value in terms of interest rates and monthly repayments. All you have to do is complete one simple application form, which saves you the hassle of having to complete a form for each lender in which you are interested.
An established mortgage broker will already have formed links, contacts, and relationships with a wide range of mortgage lenders to get you the best home loan.
He or she will therefore know which lenders may cater for your particular needs. For instance, if you have a poor credit rating and you are looking for an affordable mortgage, the broker will most likely know which lenders offer affordable finance to those with a tarnished credit history and can therefore approach the right lenders straight away.
If you were looking for a bad credit mortgage without the help of a broker, you could end up going through one application after another with a range of unsuitable lenders, and you could end up with a long line of refusals, which could make your credit rating even worse.
Using a mortgage broker is a great way to get a good value, affordable mortgage that is tailored to meet your needs and circumstances. It is also an excellent solution to getting the best mortgage deal without having to put in the hard work and time that you would have to without the assistance of a professional broker.
Must I understand the financial jargons to get the best home loan rate?
Using a Mortgage Broker can make a difference in the interest you pay, the points you are assessed, how difficult it is for you to qualify for a loan, the length of time it takes for your loan approval, and even whether or not you can get a loan.
If you had to do it yourself, where would you start? How many mortgage sources are you familiar with? How many of the hundreds of loan variations do you fully understand? Your mortgage broker can guide you through this potentially disastrous maze, and lead you to a lender and the loan that best fits your specific requirements.
There are, in fact, money sources who may only provide funding through Mortgage Brokers. Market conditions often dictate how “choosey” most lenders will be, what percentage of total income the lender will allow a mortgage to be, how large a down payment is required, how perfect your credit rating must be, and other such factors. Unconventional sources known only to a Mortgage Broker may offer hope to prospective homeowners who are having difficulty qualifying with conventional lenders.
Finding the best mortgage loan for your home can be a confusing experience. With so many options to choose from, it can be difficult to find your way. That is why a Mortgage Broker is your number one source for a loan. A Mortgage Broker will guide you through the lending process, provide you with any help you need, and try to simplify the process.
How do I secure the best home loan rate quickly?
When using mortgage broker services, know that they can set you up on a path that can get you the best home loan meant only for you, in a quick and seamless manner.
Good consultants at have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home or commercial purchase needs. You should also find out about money saving tips.
Whether you are looking for a new home loan or to refinance your existing one, a good Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all their services are free of charge. So it’s all worth it to secure a loan through them.
