Why should a Mortgage Consultant?

Back in those days, there are only the finance houses you can turn to for hope of getting a mortgage. Choices? Never heard of them.

Then, the banks started to offer products targeted at an individual basis instead of just focusing on their corporate clients. They came out with their own mortgage package. Still, the clients have to be in an active position by wandering up to the mortgage officer and requesting for a mortgage.

After the insurance companies come into play, the margin of the mortgage packages started to reduce and mortgage providers have to compete harder to secure their market base. Clients suddenly find themselves being approached by the mobile agents of these mortgage providers.

A natural job that evolved from this countless choice of mortgage packages is SOMEONE to choose these mortgages on your behalf – a mortgage broker or an independent mortgage advisor.

Oh no, that in itself is another choice. Faced with all these options, what is the right one to make?

Find your right mortgage partner

The fact is, there are so many products available, all competing to get your business, that unless you are an expert, it is easy to choose the wrong one.

The key to a great mortgage is finding a good broker or mortgage officer, who can serve in your best interest by obtaining the best packages from time to time in order to save on loan interest. Thus, from proper mortgage planning, there would be wealth creation or accumulation.

How do you choose your mortgage partner?

It’s all about credibility, dependability and longevity.

1) Credibility

Are the mortgage officers/ agents/ brokers independent?

Naturally, the financial institutions and their outsourced will only promote their own products as their bonuses and commissions are linked to their sales, hence their views will be biased, i.e. their own products are always the best products.

On the other hand, the insurance agents will often cross sell their own products, i.e. clients can only take on their mortgage packages if they buy their insurance packages too. Which makes sense of course… from their point of view.

There is nothing wrong with cross selling of products. Who knows, those products might even suit your needs. It is up to you to decide. However, if you don’t feel like being pushed into buying another product that you don’t need, then just go to another provider for your mortgage package.

The new kid on the block in Malaysia – mortgage broker would be the solution to the problem. They are professionals who focus and specialize in mortgage consultation work at all time. They carry out research on all financial institutions’ latest loan packages, and then simplify them so that it could be easily understandable.

On top of that, the consultants match the client’s profile with the loan packages and also assist the client in their mortgage application. Brokers are in neutral position to advise and keep track of clients’ data to highlight the need of refinancing or restructuring.

2)Dependability

Can the financial institutions or the agents who offer you their services deliver what they promise?

With so much competition going on, it would come as no surprise if anyone quote you a lower than market rate to attract you. The honeymoon rate might change once the “promotion” period lapse, leaving a surprised you to find that your monthly repayment has gone up.

How could this happen? You trusted them and they did not highlight the “special” terms to you. Welcome to the real world. Of course, not all agents are out there to get you and it is important that you find someone who has been long established in the field. The rule of thumb is to find someone with at least 3 years’ experience under their belt.

Alternatively, you could shop around to find out about mortgage and their lingo before you commit to anything. With the advent of the internet, you can have access to tons of information in relation to the mortgage in a click, making mortgage packages more transparent and competitive. Even mortgage loan application can be submitted online at www.osm.com.my.

However, if you are short on time, mortgage broker can be your best friend. Brokers work with many mortgage bankers and can sometimes find the most competitive rates, tailored to your financial situation.

Beware: There were incidents where ex-employee of a mortgage broker firm become self employed and charge their own client exorbitant amount of money. In some cases, it could be up to RM5000. In actual fact, broker charges Nothing, as they earn commission on the mortgage deals they broker.

Scams can happen anytime, anywhere and here are a few tips to protect yourself from unscrupulous agents:

i) Pay a visit to their company if you can.
ii) Check out the validity of the information printed on their name cards, e.g. phone number and website.
iii) Ask another agent working in the same company to verify the identity of your mortgage agent.
iv) Ask for a formal receipt whenever money is involved.


3)Longevity

Have the agents/ institutions been around in the market long enough?

Some agents may only be in the field for a quick buck when there’s a property boom and get out of the field when the business is low, say, during a recession. The lack of dedication on his part would become a problem for you, as a client, as you might call one day to close the deal on the mortgage you’ve been discussing with him, only to find that he’s left the company. Or worse, the company has closed down.

Only an agent with integrity can stand up against time and continue to flourish. Satisfied clients would come back for refinancing solutions or refer their friends and family to the agent.

The rule of thumb is to find someone with at least 3 years’ experience under their belt. This is not to say with those with less experience is no good. There are excellent agents who built their credibility within a short period. Ask the question, “How long do you intend to be in the field,” and you might be able to differentiate the good from the bad.

Should you REFINANCE your mortgage loan now?

You should, if your current mortgage interest is higher than BLR-2% (i.e 3.55%) or else you are just paying high interest to your lender, no loyalty should be in you!

In fact, "refinance" should appear in your mind anytime as long as you are in mortgage loan debt or you are a property owner. Not only now!

You should, if there is a gap between you existing interest payable with current interest offered in the market from other lenders. Do your interest saving now without further delay! Do not wait!!!

You should, if you think your loan package is no more in fit to your current cash flow movement i.e change of career might give impact on your cash flow fluctuation, go and get the flexible loan package to save rather than stay in your existing conventional term loan!

You should, if you need cash for your own personal use i.e business set-up, renovation, education funding or emergency fund! Mortgage loan financing always is the best financing tool compare to others like personal loan, credit card ... because mortgage loan interest always is the lowest! Instead of applying personal loan, or use credit card loan to pay all these, better refinance yours!

You should, if you are in lots of debts! Check out yours, use your mortgage loan cash out to contra your high interest debts! Refinance with cash-out, get cash out from mortgage loan financing, again mortgage interest always the lowest, use the cash out to fully or partially settle other high interest debts! Then, pay only mortgage loan installment and your debt burden sure will be released a lot!

You should, if you do not favor to your existing lender services! Refinance to change your lender if any!

COMPARE, CHOOSE AND SAVE! Calculate yours now......