Case 1: If your profile is solvent
If you do not have economic problems, your employment situation is stable. You can demonstrate constant income. Hiring the services of a mortgage broker is a guarantee of obtaining more personalized mortgage options and in better conditions than those you could find on your own first because he knows the mortgage market inside out and knows the margin of action that banks have to lower the price of the loan second because he knows how to negotiate with them to achieve it.
Whether you only want me to look for the best offers for you or, instead, you need me to accompany you throughout the contracting process and advise you. You are interested in hiring a free or paid broker, respectively.
Case 2: If you have a magnificent financial profile
Suppose your economic situation is exceptional, such as civil servants or employees with very high incomes. In that case, you will not have problems finding a mortgage with advantageous conditions because banks fight for premium profiles. The added value that the broker gives you is their knowledge of the mortgage market and their ability to negotiate and get counteroffers by fully exploiting your great financial profile.
In these cases, we recommend hiring the services of a free broker, not a paid one, for the simple fact that you will not have any significant complications in finding a loan that suits you. Your main task will be to use your experience to negotiate the loan as much as possible.
Case 3: If you do not have time or have little knowledge about mortgages
Whether you are a very busy person or do not understand much about the world of mortgages, the broker will save you the work of investigating, comparing products, and going bank by the bank to negotiate better conditions.
It will be more worthwhile to hire a free or paid intermediary depending on the type of support you need and your financial situation. For example, if you don’t have savings and don’t even know where to start your search, consider hiring a paid one that will accompany you.
Case 4: If you have little savings
Suppose you need a bank to finance a higher percentage of your future home purchase. In that case, some intermediaries are specialists in obtaining mortgages with more than 80% financing and up to 100%, the most complicated to locate and negotiate. This is so because many banks do not openly announce that they grant them or are more reluctant to give them because they associate a greater risk of default.
That is why most intermediation agencies or brokers take on this type of client are paid. If this is your case, do the math to see if the outlay is worth it in exchange for getting your mortgage. Also, remember that if you do not contract any of the products that the intermediary presents you, you can reject them, and you will not have to pay a single euro for their services.
Although the broker is a reputable professional, he cannot perform miracles either. If your profile is not good because you have no savings, no income, or a permanent contract, it may not be the right time to apply for a mortgage.
If you are a self-employed worker and you cannot get any bank to approve your application, a financial intermediary can help you get the best mortgage for the self-employed.
How much does a mortgage broker charge?
As we have already explained to you above, some financial intermediaries will charge you for their intermediation services. Each broker and agency handles its fees. Some work with fixed prices, such as Housfy, which charges 3,990 euros. Others, like Helloteca, establish different rates depending on the case. For example, if they get you a 90% mortgage to buy a house for 200 thousand euros, you will have to pay about 3,400 euros. On the other hand, if you are looking for a 100% loan, the price increases to 3,950 euros.
To give you a generic idea, most of these professionals usually charge between 1% and 5% of the mortgage capital they get for you. Now, we know that there are intermediaries who ask for massive commissions of up to 7,000 euros for negotiating mortgages of more than 80%.
Regardless of what they charge you, the great advantage of hiring a payment broker is that you will only have to pay their fees if you sign any of the mortgages they present to you. That’s why you must do numbers. A priori, it may seem like a significant outlay (taking into account, moreover, that you are about to take out a mortgage). Still, it can be well worth it in the long term if, thanks to the intermediary’s efforts, you end up paying less for your mortgage installments.
Some brokerage agencies, such as Housfy, charge their fees once the bank gives you the FEIN, one of the steps before signing the contract. This binding document includes the personalized conditions of the mortgage that the bank will grant you. If you decide not to contract the loan for some reason, the intermediary is obliged to return the money you have paid for their services.