Buying an industrial property for investment requires a lot of planning. Once you’ve decided on a unit and negotiated the purchase price with seller, you’ll also need to kickstart the necessary process and paperwork to get a loan for your property.
While you may be familiar with residential property loans, commercial loans may be a different ball game altogether. You may want to consider working with an experienced mortgage broker who can give you good advice and knows how to source for the best loans based on your unique requirements.
What does a mortgage broker do?
A mortgage broker can save you a lot of time in the loan-hunting process. Here’s what they can do for you:
- Compare different interest rates from various banks
- Shortlist potential loan packages that suit your needs
- Consolidate all the relevant information required from you in order to apply for a loan, such as your income, CPF statements and credit history
- Negotiate for a competitive loan term and interest rate
- Arrange for a property valuation
- Submit your mortgage application for approval
- Work together with the bank, your lawyer and accountant to ensure a smooth transaction
Benefits of engaging a mortgage broker
1. They understand your needs
An experienced mortgage broker who is familiar with the industrial property investment scene will be able to understand your motivations for buying an industrial property. Whether you’re looking for positive cash flow and rental income or looking to eventually realise capital gains, they will be able to find the right loan that can help you to achieve your goals.
2. They have industry knowledge
Seasoned mortgage brokers with industrial property experience will be well-versed in the ins and outs of applying for a loan. Working as independent advisors, they will be able to share ample advance and tips based on their years of working in the field. As they are well-versed in the banking loan process, they will also know how different financial institutions work and be able to identify those which are more flexible or stringent in their approval process.
3. They work independently from the bank
Because mortgage brokers are not on the sales teams of any one particular bank, they are able to compare different lending options. Through their established network, they will have access to loan packages from various banks. Therefore, they are in a better position to find rates and terms that are not only more competitive for you but which caters you your financial goals and investment needs.
4. They will help you to negotiate your loan terms
Sometimes, interest rates on industrial property loans may not be set in stone. Therefore, you can rely on an experienced and skilled mortgage broker to help you negotiate for better interest rates and loan terms for you. If you are able to find an experienced mortgage broker with well-established negotiation skills and relationships with the commercial loan managers at various banks, this will definitely be advantageous to you and help you to save money.
5. They can save you time and facilitate a smooth transaction process
Working with a mortgage broker makes industrial property investment a less stressful endeavour. As part of your Ace property investment team together with your accountant, lawyer and property agent, they will make your life much easier by helping you with your application as they will see through the entire transaction from start to finish. You can focus on other aspects of your life or continue to pursue other investment opportunities