Mortgage brokers in Malaysia – Who are they and what they can (and cannot) do for you?


One of the biggest concerns when buying a property is the paperwork and the process that has to go into it. Documentation might not be your strongest area and that would mean you might miss out on certain details.

Let the professionals help you

In the process of buying a property, you would come across many types of people who play a role along the way. Mortgage brokers are one of them. One thing for sure, the paperwork to buy a house is very complicated and you need to furnish many types of documentation. If you are a first-time homebuyer, this can be quite an intimidating process. So, you could get the help of a mortgage broker to get you through this. A good one (competent) will do most of the work for you without much hassle and you probably need to only sign on the dotted lines when the time comes.

Roles of the mortgage broker

So, what does a mortgage broker do? Basically, you can view him as a middleman or an agent who finds the match between the borrower and a lender (in this case, the bank) for a property. As a result, the mortgage broker gets a commission. But you must be aware that a mortgage broker’s influence and abilities do not cover everything under the sun. Hence, knowing what they can and cannot do will help you understand what you are signing up for. This is most crucial if you are a first-time property buyer because it helps to manage your expectations.

  • Banks approve your loans – This is not approved by the mortgage broker. They are not employed by the bank and hence will not have any power whatsoever to decide if you get the loan. When you engage a broker, do not expect them to get you the loan you need. He will advise you on which loan to go for and then compile your paperwork, ensuring that you have fulfilled the requirements.
  • They cannot speed up the process – You should not expect the mortgage broker to expedite your application process because they do not have that influencing power. In whatever case, pressuring your broker won’t get your money (in cases like refinancing) faster. Remember that they are only making the process easier for you, not making it any faster.
  • Be clear with what you want – Mortgage brokers work solely on commission which means they do not appreciate going around in circles. If you are serious about what you want to buy, then go straight to the broker, how much you need and when you need it. They will try to get down to business in the shortest time possible as they would need to work on upcoming deals after this.
  • Brokers don’t make money decisions – Most banks provide loans around the 80-90% bracket of the property’s value. You will have to pay the extra as a downpayment. There are situations where you might need to pay more upfront in cases where there is a disparity in the asking and actual market price. This is not the fault of the broker.

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