5 Tips to Secure the Best Mortgage Deal

Posted on Posted in New Home Loan

Every field has its competition and this is no doubt the same for the mortgage industry. Banks are contesting their way up to offer you and I the best mortgage deal that entails the lowest mortgage interest rates and perhaps, some other advantages. You might have heard that the mortgage rates in Singapore today are at its lowest but allow us to remind you that you should still compare and know the contrasting differences to ensure that you got yourself the best deal.

Here are 5 golden tips you can take on your journey to search for The Best.

Tip #1 Let your credit score soar

A credit score is a numerical rating used to assess a borrower’s credibility. Lenders view this as the most accurate method to check if the borrower has the ability to take up the mortgage and pay in due time when the loan tenure is up. A higher credit score awards the borrower with a chance to secure the lowest mortgage interest rates.

Since credit rating is a determining factor of the current mortgage rates Singapore citizens or foreigners can obtain, it is crucial that all borrowers maintain a high score to procure the lowest mortgage interest rates for their loan.

HugMortgage suggests the following to increase your credit score.

Pay your bills and loans systematically on time and in full. For example, do up a debt payment calendar to remind yourself of the debts to be cleared for that month. This advance financial planning will certainly increase your ability to repay the debts on time and allow you a chance to attain the lowest mortgage interest rates.

Tip #2 Choose the best package deal, not just the lowest rates

If the borrower decides to take up a mortgage loan, he/she should be concerned not only about the lowest mortgage interest rates but the entire loan product that the bank can offer. A typical package deal of a mortgage is very likely to consist the below:

  • Vouchers
  • Lower percentage of Full Redemption Penalty
  • Lower prepayment penalty
  • Legal subsidy (for refinancing)

Do not belittle these benefits that a bank can offer you! On some occasions, the mortgage rates Singapore and foreign banks offer you may be too close for comparison. This is the time when borrowers can do a cost-benefit analysis and look into the benefits and rewards offered by the different banks. After careful analysis, they then swing over to the most attractive package.  For example, Bank A may offer the lowest mortgage interest rates but offers no other perks. Thus, it may pale in comparison with Bank B who offers a slightly higher mortgage rate yet, give benefits such as, a S$1000 shopping voucher and the choice to pay higher down payment to avoid more debt on interest for the loan.

If you are unsure of how to go about measuring the pros and cons of the various loan products that the banks offer, you may want to leave it to the hands of our experts in HugMortgage and they are sure to put your mind at ease!

Tip #3 Shop Extensively, Search Wisely

There is no fixed reward that every bank will offer on top of the current mortgage rates Singapore citizens or foreigners can enjoy. Thus, it is paramount that a prospective mortgagor shop extensively and search wisely.

Shopping for a mortgage will open your eyes to many attractive deals in the loan market. It increases your exposure to the different deals offered and changes your perspective of an ideal mortgage package. Tip #2 reminds us of several rewards that we can keep a lookout for or even request to have them included in our loan product.

Do take note that banks can offer different mortgage rates Singapore consumers can procure in their loan, on the same day, depending on how they negotiate with the brokers. You want to make sure that the banks offer you the lowest mortgage interest rates without reducing the other benefits you may enjoy if you had not bargained for a better deal.

The insights you gain from shopping and comparing the different loan products with the varying mortgage rates in Singapore will set you at an edge over other borrowers who have not done their homework and are likely to be led by the nose of some very impressive bankers who polish their sales-talk to entice you fully. The banks’ websites and newspapers are reliable sources of information but they do not always update you the exact details in full for the loan you are interested to take up. Thus, you may want to consider letting the HugMortgage team of experts review your choices and advise you on the smartest way to get your mortgage.

Tip #4 Clinch the best Mortgage Reducing Term Assurance (MRTA)

Purchasing a property is probably the biggest investment for many. This expense brings not only the appreciation value of the property/land that a buyer may enjoy in due time but also the comfort of the home we get to enjoy with our loved ones. Thus, we want to understand how MRTA works and its advantages in times of unexpected happenings.

MRTA is an insurance plan that has coverage over the loan taken up for a property purchase owed to a bank and this plan is usually offered by the same bank.  Some banks made the purchase of an RTS compulsory, while others treat it as an option. The amount insured decreases over time. In the unfortunate event that the insured person passed on unexpectedly, the plan will assist the settlement of the remaining amount. Every bank offers different premiums and packages for MRTA and thus, it is important to discern which deal proposed by the bank is most suited for the client’s and his/her household needs. So, do not jump into a decision for your loan purchase just by looking at just the lowest mortgage interest rates, disregarding such an important insurance for your asset. It is necessary!

Tip #5 Get the most experienced mortgage brokers on board!

A mortgage broker is a probably a mortgagor’s best person to go for in need of professional advice. Not only are brokers familiar with current mortgage rates Singapore and foreign banks are offering, they would be able to obtain substantial savings for you especially if they are the preferred mortgage brokers of the banks. Furthermore, why Do-It-Yourself (D-I-Y) when it is totally free for you to engage help? At HugMortgage, we have Ally, who is a veteran in the mortgage advisory industry with 12 years of experience, and her team to save you from the legwork.

Conclusion

Buying a property could easily rank amongst one of the most expensive purchases in our life. Thus, it is crucial that you know your financial position and conducts a thorough research of the various mortgage rates Singapore bank offers as well as the attractive deals that foreign banks might be rolling out too. Be equipped with the essentials-to-know and leave the experts to draw out the smartest way to secure the most attractive deal that suits your needs best! HugMortgage is ready to enter this journey with you and we aim to simplify the comparison of home loans by equipping you with the right tools to make an informed decision.