Taking out a mortgage: parties involved

Purchasing a house is a major event. It is probably the most expensive purchase in someone’s life and usually requires a mortgage. It is recommended that you first seek advice from various experts about the value of a house, the mortgage to be taken out and the financial consequences. This needs to happen at different parties, but who are they and what exactly do they do?

Mortgage advisor

For information about mortgages and the consequences for you, please contact a mortgage advisor. If these advisors demonstrably have sufficient knowledge and experience, they can become a ‘Recognised Mortgage Advisor’ . This means that they are recognized as an expert mortgage advisor by the Mortgage Advisors Recognition Scheme Foundation. This foundation was established by the joint mortgage providers and serves as a kind of quality mark, so that consumers know they can expect good quality advice. Mortgage advisors who work for various mortgage financiers, such as banks, but also insurance brokers, intermediaries, brokers and independent intermediaries can all qualify for the recognition scheme. The condition for this is that the person in question has obtained all necessary diplomas, meets all practical requirements and also adheres to a code of conduct. This means that the advisor has signed the Professional Code of the Mortgage Advisors Recognition Scheme Foundation . The title Certified Mortgage Advisor is personal, which means that organizations cannot obtain the quality mark and employees cannot be wrongly sent out as a Certified Mortgage Advisor.

Appraiser

An appraiser determines the value of a home by looking at the size and location of a home. Furthermore, the overall condition of a home is analyzed, whereby the construction aspects should not be forgotten. The role of appraiser is usually fulfilled by an independent real estate agent , although it cannot be ruled out that this real estate agent is (or has been) involved in the purchasing and selling process. If in doubt, it is always recommended to have multiple valuations carried out by different brokers. When applying for a mortgage, the buyer is always obliged to have an appraisal done by an independent real estate agent, when it concerns existing buildings.

Notary

Formally, a notary is not a party to the agreements, as this official only records the agreements. The choice of a notary lies with the buyer of a house (since the rates of different notaries can vary widely, it is recommended to think carefully about this choice). As a public official, a notary is authorized by the government to draw up official documents, such as contracts, wills, etc. This also applies to mortgages, every mortgage granted in the Netherlands passes a notary.

Tax authorities

The tax authorities are not formally a party to the agreements, but the purchase of a house and taking out a mortgage does affect the amount of taxes to be paid. The mortgage interest is deductible, which means that this amount can be deducted from income, resulting in less income tax having to be paid. By completing a tax return form, the tax benefit can be paid out once a year by the Tax Authorities. This can also be done every month, but a special request must be submitted. Since mortgage loans always involve significant amounts, the benefit can be quite significant, making it worthwhile to be well informed and to get the most out of it.