(Part of “The Almost Complete Goondu’s Guide to Buying a HDB Flat in Singapore” series.)
There are 3 ways basically, to finding a suitable Bank loan:
1) Ask your real estate agent
Agents earn a referral fee for bank loans, so if you like your agent a lot, getting him to refer you a loan would help him get some pocket money from the bank as well. On the downside, they might be incline to recommend loans from banks with higher incentives for them.
2) Approach the banks individually
This can be quite tedious really. Most banks don’t have their home loan packages online, and would require you to contact them personally in order to know about their loan packages. Even then, you might not get the lowest package, as they might push higher ones first.
3) Use a Mortgage Consultant service
Basically, you provide them the details (eg. buying hdb/private, loan amount, loan period) and they’ll contact the banks and source out suitable loan packages for you.
This service is free, as they are compensated by the bank upon a successful referral.
Personally, I’ve only used HousingLoanSG before, and have not tried the rest. We went with Approach 2, and did get the best available home loan then, and it’s still the lower than those being offered now.
- Approach 1
We will work exclusively with clients to get the best housing loan package for them. We guarantee the best deal based on the client’s requirements. Beside the obvious interest rates, we also take into account other things such as legal subsidy, lock-in etc – basically the package as a whole. We will act as your single point of contact for all the lenders so that you don’t have to liaise with multiple persons. We require clients to be committed to refinancing through us for this method.
Some of our clients prefer to be more hands-on and approach lenders on their own. What we can do here is simply to see whether there is anything better than the lenders they have already approached. There is no commitment but there is also no guarantee on getting the best package for this approach.
There are no fees that we charge as we are actually engaged by every bank and financial institution in Singapore to provide this service. If you have any queries, please feel free to contact me.