Mortgage Broker vs. Property Agent: What you need to know

Singapore's real estate market can be a bit complicated, especially if it's your first time buying or selling a house. You probably know you'd need to engage the right property agent- but did you know getting the right mortgage broker is just as important?

That's because both play vital roles whether you are buying or selling. You might be tempted to just think having a property agent is sufficient, because afterall, they are your go-to expert for all things property.

However, just as how you would not consult your GP on your cancer diagnosis, you wouldn’t want to risk consulting your agent on your mortgage, especially when mortgage brokers like us exists.

The good news is unlike real estate agents, the services we provide are completely free. And understanding the distinct purposes of an agent and mortgage broker in your property transaction can help you make sure you don't end up with buyer's remorse for your property.

What are Mortgage Brokers?

Mortgage Brokers are to mortgages like Singsaver is to credit cards. We are essentially an aggregator with access to the best loans in the market, and homeowners come to us to get help on finding the right mortgage loan. Our goal is to secure the most suitable mortgage by understanding your financial needs and connecting you to the right banks.

Here's how mortgage brokers like us can support you:

• Finding the Right Loan: We have existing relationships across major banks in Singapore. This gives us access to the latest information on rates and different kinds of loans. We use this information to help simplify your search by comparing interest rates, terms and additional perks to present the best mortgage deal for you.

• Guiding You Through the Process: Navigating the mortgage application is tough. We make it easier by assisting you with all the paperwork, ensuring you meet the necessary requirements for a smooth application experience.

• Offering Personalized Advice: Understanding your unique financial situation is key to getting the right loan. We help assess your income, credit score, and debt-to-income ratio to suggest suitable loans and repayment plans that fit your needs.

• Negotiating on Your Behalf: We use our market knowledge and relationships with banks to negotiate better terms or rates for you, ensuring you get the most value.

• No Direct Fees: In Singapore, mortgage brokers do not charge clients directly. We receive a commission from the banks after successfully securing your mortgage. All banks pay us the same rate, thus you can assure that our recommendation for your loan is based on what's good for you, and not biased towards a particular bank.

Understanding Property Agents

A good property agent, aka real estate agent, is someone that assists you in buying, selling, or renting a property. Their focus is on understanding the property market and the different laws and regulations to help you find a property that is right for you.

Let’s explore what property agents do:

• Expert Market Knowledge: Property agents have a deep understanding of the real estate market, including property values, trends, and neighborhood details. They use this expertise to advise you in your transaction.
• Property Search and Listing Assistance: Whether you're searching for a new home, an investment property, or a rental, agents are there to help. They also support sellers by listing properties, arranging viewings, and marketing them to potential buyers.
• Negotiation and Transaction Support: Agents handle negotiations between buyers and sellers, and help in communicating and advising for offers received. They also oversee the transaction process, making sure all legal and contractual matters are addressed and your property completes it's transaction.
• Legal and Administrative Guidance: Agents guide you through the legal documents and administrative tasks involved in property transactions. They collaborate with mortgage brokers like ourselves, lawyers and other professionals to ensure seamless transactions.
• Transparent Fee Structure: Property agents typically earn a commission based on the sale or rental price of the property. This fee is usually a percentage of the transaction value and is paid by the property seller or landlord. There may also be instances where buyers have to pay for their agent's commission. Regardless, these rates are often stated upfront.

Key Differences Between Mortgage Brokers and Property Agents

There are many differences between a mortgage broker and property agent, and both roles are equally important when it comes to helping you with your property transaction.

Here is an overview of how their role differs:

Choosing the Right Professional

For most real estate transactions, having both a mortgage broker and a property agent is important. Most homeowners focus too much effort in finding a right home. However, getting the right financing for your home is just as important as it has far reaching consequences for you in the future.

When choosing a mortgage broker, seek someone with a proven track record and deep knowledge of the Singapore mortgage market. For property agents, opt for someone reputable, with local expertise and negotiation skills.

Understanding the roles and differences between mortgage brokers and property agents can help you make informed decisions, ensuring a smoother real estate journey. Whether buying, refinancing, or selling, having the right professionals on your side can greatly enhance your experience.

If you have any questions about your mortgage, are considering refinancing, or looking for the best interest rates in town, we’re here for you. At Mortgage Master, we pride ourselves on offering honest, transparent advice and never tire of doing what’s right. Contact us now!