What is a Mortgage Broker?

• CPCG

  7 Sep 08, 21:24

  By: Zeng Han Jun, CPCG, Singapore
  
  What is a Mortgage Broker? Basically they are the same as any kind of brokers. They are the intermediaries between the banks and the consumers. Mortgage brokers are still relatively new in Singapore and Malaysia. Here, they are also known as Mortgage Consultants or Mortgage Advisers. Different mortgage brokers have different working styles. Some merely help you to finance your property while they themselves know nothing much about mortgages. Some will monitor the mortgage market and help you to seek for the lowest interest rate. Some will analyze both the market and your financial commitment, so as to determine the right package for you.
  
  Mortgage Brokers are paid by the banks if they managed to help you secure your funding. If a mortgage broker asks you to pay an upfront fee to him, it depends on you to work out on the payment structure. Work with reputable broker firms like CPCG. Banks pay different commission to these mortgage brokers. Some of them might try to get you to obtain financing from a particular bank, not because of lower interest but because he will be able to get a higher fee.

  A good mortgage broker knows the industry well, and even if the clients faces litigation problems or want to seek refinancing even though he is jobless, the broker can still steer him to the right bank. A good mortgage broker can also polish up a client's application when there is a bit of credit problem. In the present real estate industry, the numbers of mortgage brokers are still relatively few.
  
  People normally look towards their house brokers for advice on bank loans. A house broker is still a house broker. They may be the experts in helping you to sell or buy a house, and they are experts because they spend a lot of time doing this. However they may not know much about mortgage at all. Housing agents often work with only one or two banks.
  
  One plus point about working with a mortgage broker is this. Imagine you walking into the bank for a mortgage advice. The mortgage specialist tries to close the deal by pressurizing you to sign up for the loan. A mortgage broker is different as he goes through your unique financial situation with you, and work with you to obtain the most appropriate financing.
  
  
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