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How to Get the Best Mortgage Rates in Singapore and Malaysia

Updated: Jan 16


How to get the best mortgage rates in Singapore and Malaysia

Introduction

Securing the best mortgage rate can make a significant difference in the cost of your home over time. In bustling property markets like Singapore and Malaysia, even a slight variation in interest rates can translate into savings of thousands over the life of your loan. But how can you ensure you're getting the best deal? In this article, we will share with you how to get the best mortgage rates in Singapore and Malaysia.


Improve Your Credit Score

Your credit score plays a crucial role in determining the mortgage rates you're offered. Lenders perceive a higher credit score as a lower risk, leading to better mortgage rates. Ensure you pay your bills on time, reduce your debt-to-income ratio, and check your credit report for any errors to improve your score.


Compare Different Lenders

Shopping around for the best mortgage rates is a must. Different lenders might offer varying interest rates and terms based on their assessment of your creditworthiness and current market conditions.


Consider the Type of Interest Rates

Understanding the difference between fixed and floating interest rates can significantly impact your repayments. Fixed rates provide certainty of repayment but might be higher initially, while floating rates may offer initial savings but can fluctuate over time. Consider your risk appetite and financial stability before choosing.


Negotiate with Your Lender

While it may seem daunting, negotiating with your lender for a better mortgage rate is a legitimate strategy. If you've been a loyal customer or have an exceptional credit score, use this as leverage to negotiate for lower rates.


Consider a Mortgage Broker

If navigating the mortgage landscape feels overwhelming, consider engaging a mortgage broker. They can provide expert advice, negotiate on your behalf, and help you secure the best possible mortgage rate.


Maintain a Stable Employment History

Lenders prefer borrowers with stable employment history as it signifies a steady income stream for loan repayments. If you're planning to switch jobs, you might want to secure your mortgage first.


Make a Larger Down Payment

A larger down payment can lead to better mortgage rates as it reduces the lender's risk. It might mean saving for a longer period, but the benefits in the long run can be substantial.


Conclusion

Securing the best mortgage rates in Singapore and Malaysia requires careful planning and savvy strategies. By improving your credit score, comparing lenders, understanding interest types, negotiating with lenders, considering a mortgage broker, maintaining stable employment, and making a larger down payment, you can position yourself for the best possible mortgage rates. Remember, do make use of technology to assist you. Platforms like Clicks® allows you to connect with people with interests in properties and when the time comes, allows you to seek advice/support from your network. This would empower you to make informed decisions on your mortgage journey. Happy house hunting!


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