As a Priority Banking Customer, you are provided with some benefits from your bank. They can range from preferential rates for your accounts and deposits, waiver of fees, or lower rates for the bank’s loan packages.
This is why many Priority Banking customers often ask if there is a need to go to a mortgage broker for their loans. After all, their banks can offer them the best available packages within the bank.
However, it is a common misconception that their banks can offer them the best rates in the market. Usually, different banks take turns to be the most competitive in the home loan market by offering lower rates than their competition. At the time when you need the loan, your bank may not be having the best rates available in the market.
It is common for the top loan package to be 10 – 20 basis points below their competition to win market share. As a priority banking client, your bank may offer you a 3 – 5 basis point discount for your loan, which will not be sufficient to tip the balance if your bank is NOT the most competitive at that point. This is where the value of working with a mortgage broker comes in.
To get the best available package for your loan, you may want to consult a mortgage expert, who has access to most of the home loan packages in Singapore. With all that information, the mortgage broker can give you the best package in Singapore, not just within your bank.
For larger loan quantum, an experienced broker may be able to help you negotiate even better discounts and extra features for your package.
As always, when it comes to mortgages and loans, we always recommend you to connect with one of our mortgage experts who can help you with a complimentary assessment of your situation. You can find us in the link below: