- Mortgage brokering platform helps homeowners in
Singapore save more than SG$100 million in home loan repayments throughout the pandemic - Strong business momentum in the past year convinced
investors to inject a fresh round of capital investment for the company to
accelerate growth
SINGAPORE – Media
OutReach – 28 April 2021 – Mortgage Master, Asia’s one-stop mortgage brokering platform,
announced today that it has raised SG$928,000 in a Pre-Series A funding round
to build on strong customer momentum and accelerate overseas expansion. This
round of investment was led by private angel investor Woon Young Jeong, and
existing investors, including Bala Swaminathan, former President of Westpac
International and Founder of S Cube Capital, and Andy
Lim from Tembusu Partners.
The
successful fundraising follows 12 months of consistent growth, which saw
Mortgage Master triple its customer base in Singapore and help homeowners
collectively reduce their monthly home loan repayments by more than SG$100
million. Since its launch, Mortgage Master has delivered unbiased advice for SG$4
billion worth of home loans and directly facilitated SG$800 million in home
loan transactions on behalf of partner banks.
“Renewed funding from our investors reflects their confidence in our business
model, growth trajectory, and our ability to meet a genuine need that has
become more pronounced in recent months,” said David Baey, Co-Founder and Chief Executive
Officer, Mortgage Master.
“With
Singaporeans seeking a greater financial cushion amidst pandemic-induced
uncertainty, those who own homes have benefitted from having Mortgage Master
identify and secure the most favourable mortgage refinancing rates across the
market and ‘return’ them a significant amount of cash that would have otherwise
gone to waste. We are humbled by the trust that has been placed in Mortgage
Master all around and will use the investment wisely to double down on our
commitment toward doing right by every homeowner,” added Baey.
The
capital will be used to strengthen customer acquisition through customer
education, forge strategic partnerships, and enter new markets. With the
funding, Mortgage Master can continue transforming the mortgage landscape and create
a home loan market that is beneficial to both homeowners and banks.
Benefits
from Affordable Home Loans Extend to Other Aspects of Personal Finance
While
Mortgage Master’s primary goal is to ensure that excessive mortgage repayments do
not impede individuals’ home ownership aspirations, the Singapore-headquartered
company recognises that homeowners must effectively juggle home loans alongside
other considerations and obligations to sustain their financial well-being.
Part of
Mortgage Master’s Pre-Series A funding will therefore be dedicated toward
establishing strategic collaborations, including but not limited to
partnerships with SNACK by Income to enhance homeowners’ personal insurance
coverage; and 99.co to aid home seekers with affordability assessments before
they embark on their house hunting journeys. Mortgage Master also seeks to help
home buyers reorientate their personal finances and ensure financial well-being
while they finance their dream homes in the current economic climate through
engaging them on community platforms such as Seedly.
Expansion
into Indonesia to Tackle Southeast Asia’s Highest Mortgage Rates
Mortgage
Master aims to likewise eliminate inefficiencies in mortgage processes across
Indonesia, while benefitting both the country’s homeowners and banks. Indonesia’s
home loan interest rates – currently the highest in Southeast Asia[1]
– have resulted in home affordability being a longstanding concern and home ownership
rates in a city like Jakarta hovering at less than 50 percent[2].
To tackle
this, Mortgage Master will leverage its funding to accelerate expansion into
Indonesia. To date, the company has already established a local office and
inked partnerships with five major banks. While exploring further partnerships,
Mortgage Master Indonesia is simultaneously ensuring that its
new staff on the ground complete the same proprietary training and adhere to the customer-centric sales management
process that has earned the trust of homeowners in Singapore.
“Mortgage Master is on a mission to reshape the mortgage market in Singapore,
Indonesia and across the region. By running a differentiated, customer-centric,
and bank-agnostic model, the company offers a more transparent and efficient
experience for customers’ journey to homeownership. What truly differentiates
David and his team is their relentless focus on “doing what is right” for
customers, while enabling partner banks to become more cost- and
time-efficient. Mortgage Master is also accelerating its development in
technology to address customers’ needs at scale, and I look forward to
supporting the company as it strives to become the partner of choice for
customers and business partners across the regional real estate ecosystem,”
said Woon Young Jeong, seasoned angel investor and lead investor in Mortgage
Master’s Pre-Series A funding round.
“Mortgage
Master has exceeded my expectations since its last fundraise, which made my decision
to increase my investment a straightforward one. What impresses me the most is
the company’s ability to continuously establish itself as a credible and
value-adding partner to all 16 licensed financial services institutions in
Singapore, while maintaining its neutral platform status to give homeowners
personalised advice and help them better afford the biggest purchase of their
lives. I look forward to continuing to work together with David to transform
the market in both Singapore and Indonesia,” said Bala Swaminathan, who was
the lead investor in Mortgage Master’s previous seed funding round.
“Since
2018, Mortgage Master has stepped in to create a positive impact on a
homeowner’s personal finances and plans for the future. My follow-on investment
is a reinforcement of my belief that Mortgage Master is not just on track to
become the trusted and preferred platform for people buying or refinancing a
home, but also a strong partner of choice for other companies who have adjacent
offerings in personal finance and are looking to drive positive and holistic
impact on individuals’ financial well-being,” said Andy Lim from Tembusu
Partners.
[1] Numbeo. Southeast Asia:
Rankings by Country of Mortgage Interest Rate in Percentages. 2021.
[2] ResearchGate.
Young Adults and Home Ownership in Jakarta, Indonesia. July 2020.
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