When it comes down to securing a home loan for your dream house in Singapore or an HDB flat, one essential player is your mortgage broker. But not all brokers have your best interests at heart. So how can you ensure that you get the best housing loan and don't fall prey to predatory practices? Read on!
Mortgage lenders often consider factors like 'weighted age' when setting up interest rates for your loan. If they use this factor without explicitly explaining it could potentially lead you into paying higher interest over the term of the agreement.
You need transparency from your lender regarding how they calculate their rates including any weightings used such as ‘weighted age’. With sites like MortgageMaster available online today providing unbiased information about various loans and banks’ policies; comparing mortgage rates in Singapore has become much easier than before.
An easy way for brokers to make some extra money is via inflating the rate offered by lenders - a practice known as 'overage'. This means charging more than what's necessary leading customers towards costlier loans.
To avoid inflated rates always ask for detailed breakdowns of costs involved while getting quotes from multiple sources which allows comparison shopping – therefore ensuring that you're getting competitive terms on offer.
Sometimes prepayment penalties are written into contracts preventing borrowers from refinancing within specified time frame rendering them stuck with high-interest loans longer than needed.
Carefully read through agreements searching specifically for clauses related such penalties; if found negotiate their removal or opt another provider altogether avoiding unnecessary restrictive conditions imposed by unscrupulous brokers.
Lenders sometimes pad mortgages adding questionable fees charges referred commonly “junk fees” these include administrative charges application document preparation underwriting etc might seem small individually amounts add substantial sum end day
This involves presenting attractive terms only pull rug under feet last minute replacing worse deal pressure accept because near completion process take advantage customer’s eagerness close home purchase quickly.
Avoiding Bait Switch Tactics: