The Principle: Fees Must Scale With Value
The question of broker fees isn't complicated once you accept a single principle: the fee must always be proportionate to the value received by the party paying it. Everything that follows at CraftWise derives from this idea.
In most engagements, a broker introduces a borrower to a suitable lender. The borrower gets a loan — but the lender receives a qualified business lead that generates income over the life of that facility. The value of the introduction flows primarily to the lender. So the lender pays.
How Broker Compensation Works in Singapore
Lenders typically share part of their income from a deal with the broker who referred the deal. For mortgage loans, this means the broker receives roughly 0.5–1% of the loan amount — paid entirely by the lender, not the borrower.
This is a standardised arrangement across most of the market. No single lender dramatically out-pays the others, which means the commission structure doesn't create a financial incentive to steer you toward one lender over another. We disclose the arrangement on every deal.
The Market Abuse, in Perspective
Some brokers charge borrowers 5–8% of the loan amount — on top of what they receive from the lender — for what amounts to an introduction.
Meanwhile, the lender funding the loan and carrying the full credit risk earns 4–6% ROI.
The middleman out-earns the risk-taker. That arithmetic speaks for itself.
Why CraftWise Doesn't Charge Borrowers for Matching
If your situation is a straightforward match — you need financing, and the right lender exists in the market — there is no advisory fee. The lender pays us for the referral because they received the value: a new client and a performing loan. Charging you on top of that would violate the proportionality principle, not honour it.
This isn't a promotion or a loss-leader. It's the logical consequence of asking who actually receives value in the transaction.
When CraftWise Does Propose a Borrower Fee
There are exactly three situations where we propose a fee to the borrower — each one involving value that the borrower receives directly and could not have obtained elsewhere:
1. Complex cases where traditional lenders have declined. When your existing broker has exhausted all conventional options — when legal or technical complexity means no bank or standard lender will approve the facility — CraftWise's value lies in finding you a lending structure you wouldn't have been able to access even knowing the available lenders in the market. The solution typically involves a specific private lender, a combination of lenders, or a bespoke structure. Fee: an agreed flat fee, or up to 1% of the loan amount.
2. Novel loan structures. New structures designed for your specific situation and agreed with the lender or lenders involved. These go beyond matching — they require structuring expertise.
3. Business debt structure design. Enterprise-level debt architecture and advisory, where the deliverable is a financing strategy, not just a referral.
Even in the most complex engagement, CraftWise's fee is capped at up to 1% — a fraction of the 5–8% some brokers charge for a simple phone introduction.
What a Complex Case Looks Like
Illustrative scenario — this describes the type of situation, not a specific client.
A borrower is declined by three banks due to a structural issue with the collateral — perhaps a mixed-use property with a non-standard lease, or a cross-border ownership structure that falls outside standard credit policies. Their existing broker has tried and failed. CraftWise identifies a private lender willing to take the collateral on modified terms, or assembles a two-lender structure where each party takes a portion matched to their risk appetite. The borrower gets a facility they couldn't have obtained through any conventional channel. That is the value a fee pays for.
Questions to Ask Any Broker Before Engaging
Regardless of whether you work with us, these questions protect you:
Who pays you — the borrower, the lender, or both? What percentage of the loan amount is your total compensation? Is your recommendation affected by which lender pays you more? Will you disclose the lender's commission to me in writing? Have you exhausted cheaper options before recommending this lender?
Any broker unwilling to answer these clearly is answering them.
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