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A
mortgage broker acts as an intermediary who brokers mortgage loans on
behalf of individuals or businesses.
Traditionally, banks and other lending institutions have sold their own
products. However, as markets for mortgages have become more
competitive, the role of the mortgage broker has become more popular.
Today in most developed mortgage markets, mortgage brokers are the
largest sellers of mortgage products for lenders.
A
mortgage broker can ease the burden of shopping around and do all the
research and legwork to help you uncover and choose the ideal and right
loan with minimal hassle. He has access to a range of loan products from
his panel of banks and financial institutions and using the information
you provide as to your needs and requirements, he will present you with
a choice of suitable loan products. Further he does all the running
around and paperwork, and they explain how it all works.
Mortgage brokers in Malaysia are paid by the lender and do not charge
fees on applicants.
The industry is still very new to Malaysia and not regulated by any
laws.
Mortgage
brokers fall outside the ambit of Banking and Financial Institutions Act
and the jurisdiction of Bank Negara Malaysia (though banks/financial
institutions require BNM’s consent before the appointment of any
mortgage brokers or agencies to sell their products). In such an
environment, there are opportunities for unscrupulous operators to enter
the industry.
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