Mortgage advice: is this mandatory and what are the costs?

Mortgage advice is a series of conversations and calculations made by a mortgage advisor. He does this for the benefit of his customer who wants to take out a mortgage. Mortgage advice costs money, and not just a little. Is mortgage advice recommended, what are the costs and are they deductible?

What is mortgage advice?

Mortgage advice is given by a mortgage advisor. This can be an independent advisor or an advisor employed by a bank. The latter has an interest in mortgage advice: he will always try to sell his own product. During mortgage advice, all matters that are important for taking out a mortgage are discussed. The various mortgage types are discussed, the interest deduction, the financial situation and the purchase price of the home.

Is mortgage advice mandatory?

Mortgage advice is not required by law for taking out a mortgage. However, this is strongly recommended. Most people have insufficient knowledge about mortgages. Moreover, the market is constantly changing and major changes often occur. However, there are sometimes mediation costs involved when taking out a mortgage. These costs are mandatory. Anyone who wants to take out a mortgage without mortgage advice must be aware of the interest rate, fixed interest period, risks, mortgage types and personal financial situation, also in the future. In this case, only brokerage costs / closing costs are paid for a mortgage.

How much does mortgage advice cost?

With most mortgage advisors the first exploratory consultation is free. During this conversation, the mortgage advisor will discuss what he will do for you and what it will all cost. If the mortgage advisor does not do this, do not enter into further consultation with him. The type of reward to be chosen can be discussed with the mortgage advisor. Sometimes the advisor uses two forms of remuneration, sometimes only one. This can consist of a percentage of the mortgage to be taken out, usually 1 percent, but also of a fixed amount. On average, someone pays between 1,100 and 2,200 euros for mortgage advice. Rabobank offers advice for starters for 1,450 euros (2013) and only 850 euros for self-preparation via the internet. It is true that Rabobank has a self-interest: it will try to sell its own mortgages. An independent advisor is usually more expensive, but has no interest in selling a particular mortgage. Moreover, it searches the entire market in search of the best suitable mortgage for you.

Free mortgage advice

Completely free mortgage advice does not exist. From January 1, 2013, advisors will no longer be allowed to provide free mortgage advice, the government has decided. This has resulted in a commission ban. Previously, a commission was given for the advisor who managed to sell a mortgage. This resulted in customers often being offered mortgages or loans that did not suit their financial situation at all. Now that commission has been banned, customers have to pay for mortgage advice. Rabobank offered free mortgage advice in 2012, the customer only pays for this when you actually accept a mortgage offer. Many found this misleading, because free mortgage advice does not exist. The costs incurred by the bank had to be hidden somewhere. For example, a higher mortgage interest rate. Since January 2013, Rabobank has had to charge advisory fees due to the intervention of the AFM, even if the customer does not take out a mortgage. Sometimes mortgage advice seems free, but is this hidden in the mortgage itself? You still pay for the advice. The closing commission is deductible from the tax authorities, with a maximum of 3,630 and no more than 1.5% of the debt. If more has been paid, this can be deducted in equal parts over the remainder of the term. The costs for mortgage advice can be financed in the mortgage itself. but these costs can also be paid yourself, for example with savings. Please note that taking out a mortgage involves other costs in addition to mortgage advice.

Find a mortgage advisor

To find a mortgage advisor, you can contact your own bank or another bank. The major banks all employ their own mortgage advisor, who naturally tries to sell their own products. So this is not independent. An (independent) mortgage advisor must comply with the Financial Supervision Act (Wft). An independent advisor can have the Financial Services Quality Mark. In addition, he must have a Certified Mortgage Advisor certificate. This indicates that certain educational requirements have been met and at least one year of work experience as a mortgage advisor. Only look for a recognized mortgage advisor, preferably in your area. This person is aware of the development of the housing market in your area and can respond better to financial developments.