When choosing a bank home loan, do you use mortgage brokers or simply go to the 3 big banks in Singapore and ask for an IPA directly? What are the pros and cons of using a mortgage broker?

DISCLAIMER: Biased opinion here since I represent a mortgage broker.

Pros:

• Mortgage brokers have access to the latest rates from all the major banks and financial institutions in Singapore, saving you the time of doing the research yourself

• Mortgage brokers would have access to rates that are unpublished by the banks, which can be lower that what is being offered publicly

• Good mortgage brokers are subject matter experts, so feel free to ask them any questions and concerns you may have

• Good mortgage brokers will follow up with you when your interest rates rise and you have an opportunity to refinance in order to save money in the long run

• Good mortgage brokers will have built up a network of bankers and law firms they trust and who can help to process your home loan application quickly and efficiently

• A mortgage broker's services are FREE

Cons:

• There is currently no independent accreditation authority for mortgage brokers - consider reading reviews to ensure you're being served by someone with enough experience.

• Mortgage brokers earn based on a percentage of your loan amount, so if you have a small loan amount, you may quickly discover that not every broker is willing to spend the time to assist you.

Hope this helps!

There's no difference between going through a bank or through a mortgage broker. The only difference lies with if you go through a mortgage broker, he will earn a percentage of commission by referring you to the bank. On your part, you do not pay any additional fee GE process to getting your mortgage loan is the same as going through the bank directly.

However, there are times when the mortgage broker might share his commission with you as a form of incentive for you to go through him, instead of the bank directly.