Is it better to go direct and apply loan to Bank instead?

[Dennis Ng]

a Forumer at another forum thought that it is better to "go direct", ie. directly applying to a Bank for Housing Loan instead of applying through http://www.HousingLoanSG.com .

Is it better to go direct?

Below is my reply for your easy reference.

Cheers!

Dennis Ng, http://www.HousingLoanSG.com

sure you can go direct.

By going direct, this is what happens:

1. firstly, you waste lots of time finding out from each individual Financial Institution (11 of them) what packages each offer.

2. each bank's representative Officer would sell koyok and tell you their Bank and their package is the best. After listening to the sales pitch of all 11 bank officers, you probably wasted 2 hours to 2 days of your time and ended up more confused than ever.

3. worst still, becos of your own limited knowledge of Loans and other stuff, you don't even know how to really match a package that really suit your needs. There might be fine terms and conditions that you are not aware of and you might end up accepting a Loan and regretting it.

4. after talking to 11 institutions, you chose 1 bank. A few weeks later, you start receiving telemarketing calls from ALL 11 financial institutions, trying to sell you other stuff, from credit card, fixed deposits, insurance, investments to CDOs. You end up wasting more time handling all these telemarketing calls from banks.

5. you engage a lawyer appointed by bank. Becos you don't have bargaining power, you end up paying higher legal fees, the difference can be anything from $200 to $900.

Thus, I can safely tell you there are NO advantages but ONLY Disadvantages by going direct. It is NO surprise that in more advanced countries, such as U.S. and Australia, consumers have been wiser after years of Public Financial Education that it makes sense to apply a Housing Loan through a REPUTABLE Mortgage Broker than going direct.