I cannot exactly tell you when the mortgage brokerage industry started in Singapore.  But one thing for sure, more and more homeowners and investors are wising up to the huge benefits of working with a mortgage broker and the past few weeks’ experience when 3-month SIBOR suddenly shot up to 1.50 has underscored this point and also reaffirmed our belief in the value of our work.

Let me explain.  It is not just about cost savings in transaction fees when one purchase a property (working with us, our partner law firm offer $1,800 for both completed and under construction properties versus the market average of $2,500 or higher), more importantly it is about securing the best possible rates especially for refinancing.  Over the past couple of weeks, we have started warning clients of impending moves by lenders to adjust their interest rate up fairly soon, not a matter of choice but a result of tightening liquidity in the system.  Towrds end of 2017, we have actually helped clients to lock down 3-year fixed rates at 1.60% to 1.68% way behind their current lock-in ends in 2018.  Had these clients waited till later on this year, the rates would have run.

At this point, the prevailing 3-year fixed rate has already gone up to 1.80-1.85%, and that for 2-year fixed to 1.75%.  Almost all the banks started adjusting their fixed rates up in December even before the recent spike in SIBOR.  Banks are privy to any movements in the interbank market and will be the first to respond.  Following SIBOR’s aggressive spike, one local bank has also just announced the next round of increase in their fixed rates come next week.  So for those whose lock-in ends soon, take action and speak to our consultants quickly.

In an environment when rates are on its way up which is likely the scenario for the next few years, it is important to forge a close working relationship with a professional mortgage consultant, especially one who has the most accurate rates on hand and who can pre-empt the market.  As I have stated earlier, the benefits of working with us goes beyond just the “volume discount” we negotiated when it comes to legal fees etc, but the savings we bring when one is able to take pre-emptive actions to always lock down the lowest rate possible when the interest rate cycle goes up and likewise when the cycle comes down.  Working on your own, or with a property agent (who is usually only there at the purchase, and unable to present comprehensive updated information any time when you need it), can only get you so far.

Full-time professional mortgage brokers are able to provide you access to all the latest rates, and privy information when some rates might end.  Not only that, because of the volume of business that we give to certain lenders, we are able to secure slightly better terms on your loan from time to time, even slightly lower deviated rates at times.  We will always try though we cannot promise.  At the very least, when all packages are the same (otherwise we will tell you like some direct-to-bank DBS home loan packages and UOB home loan packages right now, other brokers don’t tell you that), why should you refinance home loan direct with the bank when you can at least receive a small token of appreciation from us in the form of a $50 or $100 shopping voucher (min. $500,000).   This is to thank you for taking your home loan through us.  Try us out today!

Since 2014, MortgageWise.sg has provided thought leadership in the mortgage planning space in Singapore, taking deep dives into the latest trends in the industry, providing useful mortgage tips, and making sense of rate movements.  We aim to build trust with clients for longer term partnership and not just do product-pushing for a one-time deal unlike bankers.  That’s why we always present “whole-of-market” perspective including packages that banks do not pay us.  That’s why many have chosen to work with us in the end notwithstanding the sheer number of brokers and agents out there.