By: Zeng Han Jun, CPCG, Singapore

The reason why consumers search for several home loan rates before committing, only boils down to one thing: They do not want to get ripped and only want the best deal that they are able to get for themselves.



One of the best ways for getting the best rate at the fastest possible time without much hassle is using the service of a mortgage broker. However, I would like to caution you about an industry secret that mortgage brokers or even bankers do not want you to know!

What is this industry secret that can impact me negatively?

Many home owners and investors are being ripped off on a daily basis, without them even knowing about it. How can it be? These people are being ripped off by paying for a higher closing cost, compared to other people who are getting the same mortgage loan product.

What contributes to this higher closing cost?

Certain financial professionals actually teams up with their lawyers to charge higher closing fees for their clients. The “extra” closing fees are then passed on to your financial advisors! This becomes even more alarming when your financial advisor promised you that his or her service is free. He or she is actually earning your fees indirectly. Sure, there are many who are willing to pay a fee for advice and service rendered. However, if your financial professional tries to entice you to use his or her service because it is free and then proceed to charge you secretly, that does not seem very ethical. Some mortgage brokers even offer you cash incentives if you use their service. That is because they work with their lawyers to charge you higher closing fees, after which they will pass on a bit of that money to you. Everything is nicely calculated to ensure they win and you lose!

Who else can use such a method on me?

It is not only your mortgage broker or banker who can use this kind of “underhand” methods on you. Even your real estate agent does that. It is very important to know who you are dealing with, especially if that person plays a part in your finance. It is always a good idea to work with someone who was referred to you by a close friend, if that is not possible, try to look for one with a good reputation. An advisor with good reputation definitely has lots of incoming businesses, resulting in a very packed schedule but is definitely worth the wait. Definitely better than using one who has wants to earn a quick buck and disappears.





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