Mortgage Broker

What it is

A mortgage broker is an intermediary who works with several banks at once, rather than representing just one lender. Their role is to gather your income and property details, compare available packages across the banks they work with, and help you put together the application. Many buyers in Singapore use a broker instead of, or alongside, approaching banks directly.

How it works

A broker typically asks for basic details, such as income, existing debts, and the property you are looking at, then presents a shortlist of packages from different banks that could fit. They usually help submit the application and follow up with the bank through approval. In most cases in Singapore, mortgage brokers are compensated through a referral fee paid by the bank once a loan is disbursed, rather than a fee charged directly to the borrower, though it is worth confirming this arrangement upfront with any broker you work with.

A broker widens what you see, since one bank's own staff will only ever show you that bank's own packages, but it does not remove the need to read the Letter of Offer carefully yourself, since you are the one who signs it and lives with its terms, including the interest structure, lock in period, and any redemption penalty.

What first time buyers get wrong

• Assuming a broker automatically finds the single best package, rather than treating the shortlist as a useful starting point to compare and question further.
• Not asking how the broker is paid, and by whom, before relying on their recommendation.
• Skipping their own reading of the Letter of Offer because a broker is handling the paperwork, when the terms are still the borrower's responsibility.
• Not checking directly with a bank as well, since going direct sometimes surfaces the same or different promotions than what a broker presents.

What to check

Ask any broker how they are compensated, whether that changes which packages they tend to show you, and confirm every number they present against the bank's own Letter of Offer before signing anything. Compare what a broker shows you against what you find approaching a bank or two directly. This page explains what a broker does in general terms only. Winfred is a licensed property salesperson, not a mortgage broker or financial adviser, and does not recommend any specific broker, bank, or loan package.

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.