You are planning to take out a new mortgage for the home of your dreams. Or you want to switch your current mortgage. Then you will be faced with advice and brokerage costs for a mortgage. Because free mortgage advice does not exist, not now but not in the past.
Provision of a ban: now pay for advice and mediation costs for mortgage payments
In the past, for 2013, you usually did not pay directly to the mortgage advisor for mortgage advice and mediation. The mortgage advisor received a commission from the bank if he closed the mortgage for you there. As a result, it seemed like you got free mortgage advice and you now pay a lot for advice. However, the costs for mortgage advice were previously encrypted in the mortgage amount. It was unclear how much you actually paid for the mortgage advice costs yourself. This, according to the Financial Market Authority Authority, also meant that advisors could have a preference for mortgage lenders. Because the banks could increase the commissions or give bonuses, making it even more advantageous for the adviser to take out your mortgage there. Whether the advisor still kept an eye on your interest is the question. Nowadays you pay directly to the mortgage advisor the costs for mortgage advice. So honest.
Advantage of direct advice costs mortgage payment
The fact that you now directly pay the consultancy costs for your mortgage ensures that the independent advisor looks at the best option for you. The consultant may no longer be rewarded by the mortgage lender to sell a product. And you have a better understanding of the costs for the mortgage.
Disadvantage of direct advice costs mortgage payment
Despite the major advantages of the commission ban, there is also a disadvantage. Because every advice has to be paid, a second opinion is financially expensive. Have you taken out a subscription with the consultant? Then you will not quickly switch from mortgage adviser to the future.
Requirements mortgage advisor
Not only has there been a commission ban on mortgage advice, the Financial Supervision Act (Wft) and Code of Conduct for Mortgage Brokers (CHF) have also been put into operation in 2007. This law and code of conduct are for the protection of you as a consumer against irresponsible high mortgages. In addition, rules for duty of care have been developed and it has been stipulated that the advisor must record how the mortgage advice came about. The mortgage advisers must be in possession of a Wft permit and demonstrate that they meet the minimum training and experience requirements.
Transparency about mortgage advice costs
The mortgage advisor must be transparent about the costs he charges for the mortgage advice. You often receive the first, exploratory mortgage advice interview free of charge from the advisor. During this meeting, you will meet the advisor. The consultant looks at your situation and indicates what he can do for you. You will also receive a service document from the advisor, where the average mortgage advice and mediation costs are listed. This gives you an idea of how much the cost of the mortgage is for you. Always read the service document carefully so that you know what you agree with. After the first interview, you decide whether you want to work with the adviser, or whether you want another mortgage advisor to work.
The average mortgage advice and brokerage costs at an independent mortgage advisor
For the average mortgage advice and brokerage costs with an independent mortgage adviser, you can take into account around € 2,000 to € 3,000. The amounts may be higher or lower depending on the rate of your mortgage advisor. Together with the advisor you can determine whether you have an hourly rate applied, a fixed amount or a subscription. Do you opt for a fixed amount for which you pay in installments? The consultant may not charge costs for paying in installments.
Average mortgage advice and brokerage costs at the bank
Instead of taking out your mortgage through an independent mortgage lender, you can also choose to do this directly from a bank adviser. The costs for this amount to between € 1,000 and € 2,000. This is often lower than if you purchase mortgage advice and mediation from an independent mortgage advisor. However, the bank adviser will generally only give advice about their own products. This does not have to be the best or cheaper choice for you. Although the costs for the mortgage are lower, it may be that you are more expensive with the mortgage that you take out via the bank advisor. After all, the independent consultant can close multiple products from multiple mortgage lenders for you. Products that can be cheaper.
How do you choose a mortgage advisor?
In addition to the rates that the consultant uses, please also note which products the adviser can offer and why. You can find this in the service document. It also states whether advice is given on the basis of an objective analysis and whether there is a contractual obligation to advise only a certain number of mortgage lenders.
Does your advisor offer you a service subscription? You are not obliged to take this off. In addition, your advisor always has the obligation to inform you if there are any changes to the advice he has given you.
Advice and brokerage costs mortgage no longer to finance
From 1 January 2018 it is no longer possible to co-finance consultancy and brokerage costs in the mortgage. You can only finance 100% of the house value with your mortgage. From this date you will finance the advice yourself by means of your savings or another method.
After consulting the bill
After you have used the services of the mortgage advisor you will receive the invoice within a few weeks. It is always good to check for accuracy. Is the bill correct? Then you pay it within the agreed term. The consultancy costs are often once deductible from the tax. The mortgage advisor can tell you more about this. So you still have a financial benefit from the advice.