Why Mortgage Advisory Matters
A mortgage is likely the largest financial commitment you'll make. The difference between the right package and the wrong one compounds over 20 to 30 years into tens of thousands of dollars — and the "right" package changes depending on where we are in the interest rate cycle, how long you plan to hold the property, and whether you're buying to live in or invest.
Most borrowers choose a mortgage based on the lowest headline rate they can find today. That's the single most common mistake. Headline rates apply for the first two or three years of a lock-in period. What happens after — the repricing rate, the penalty structure, the flexibility to refinance — matters far more to your total cost of borrowing.
New Purchase vs Refinancing
New purchase: You're buying a property and need to secure financing. The key decisions are loan quantum (how much to borrow vs pay in cash or CPF), rate structure (fixed vs floating), lock-in period, and which bank's overall package offers the best total-cost outcome — not just the cheapest first-year rate.
Refinancing: Your lock-in period has expired (or is about to) and you're evaluating whether to stay with your current bank or switch. Refinancing saves money only when the rate improvement outweighs the switching costs — legal fees, valuation, and any clawback penalties. CraftWise calculates the true breakeven so you make the decision with real numbers, not headline promises.
How Mortgage Packages Actually Differ
Every bank offers fixed and floating rate options, but the structures vary in ways that aren't obvious from the rate sheet.
Fixed rates give you certainty — your repayment stays the same for the lock-in period, regardless of what happens to interest rates. The trade-off is a premium: fixed rates are higher than the initial floating rate. They make sense when rates are expected to rise or when you need predictable cash flow.
Floating rates — pegged to SORA (Singapore Overnight Rate Average) or a bank's internal board rate — are cheaper at entry but move with the market. SORA-pegged rates are transparent (published daily); board rates are set by the bank and can be adjusted at their discretion. Understanding which benchmark your rate is pegged to matters more than the spread printed on the term sheet.
Lock-in penalties, clawback clauses, and partial prepayment terms are where banks make back what they give away on headline rates. A low rate with a 1.5% clawback and no partial prepayment flexibility can cost you more than a slightly higher rate with none of those restrictions. These details are in the fine print. CraftWise reads the fine print.
What CraftWise Does Differently
We don't chase the lowest headline rate and call it advice. We look at your full picture — how long you plan to hold, whether you might sell or refinance within the lock-in period, your cash flow requirements, and where we are in the rate cycle — and recommend the package that minimises your total cost of borrowing over the relevant horizon.
We compare across major banks in Singapore and present you with a clear breakdown: rate, lock-in period, penalties, total estimated cost over the lock-in, and what happens after. No jargon, no pressure, no hidden preference for the bank that pays us the most — because our compensation is standardised across lenders. See our fee transparency page for exactly how that works.
When to Talk to a Broker
Before you commit to a bank's offer — not after. Once you've signed, your options narrow dramatically. The best time to engage a broker is when you've received your Option to Purchase (OTP) or when your lock-in period is 3–6 months from expiry. This gives enough runway to compare properly and negotiate.
If you've already been speaking to your bank directly, that's fine — bring us the offer and we'll benchmark it against the market. If it's genuinely the best option, we'll tell you. If it's not, you'll know exactly how much better you could do.
Buying, refinancing, or just want to know where you stand? No obligation.
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