Clients have very different ideas about how a good advisor should behave. This is why no one advisor is the best, it can vary widely depending on client needs. But it is important that you as a customer know what questions to ask. Because there are criteria that are important in our eyes for each client. For example, most want an advisor, not a salesperson.
If an advisor's personal gut feeling is right, he or she would be well advised to clarify other factors. We have put together a few criteria for you.
Specialization / orientation of the consultant
- Does the advisor know your situation and needs and does he respond to them?
- Is the advice professional and, above all, comprehensive?
- Do the employees / advisors have appropriate training?
- Does the consulting firm specialize in mortgage consulting?
- Is the substitute regulation guaranteed?
- How are special requests responded to?
- Exist appropriate tools and software solutions to provide a good service.
Transparency of the advisor
- Is a comprehensible, neutrally developed mortgage strategy derived based on the initial situation of the customer?
- Are commissions of individual mortgage lenders disclosed upon request? In what form is the customer informed about brokerage commissions (verbally, in writing)?
- When in the consultation process to talk about interest rates and contract terms (at the beginning or deliberately at the end)?
- Fees incurred by the client are shown separately and transparently? In the case of fee-based advice: is a specific offer made? Is there a cost ceiling?
- Is the compensation of the advisor clearly agreed and set out in a quotation? Is the advisor willing to confirm in writing that they will disclose all overt and hidden commissions to the client?
Interest rate
- Is the mediation of a mortgage or the neutral advice in the foreground?
- Are the processes designed in such a way that the client's interests are paramount?
- "Must" the consultant distribute own, respectively mortgages of his employer?
- How many lenders does the advisor work with. Includes lenders who do not pay commissions?
- Does an "independent" advisor possibly profit from selling mortgages from a specific bank (commissions)?
- Does an advisor have incentives to recommend particularly high or especially long-dated mortgages because of the design of the commission and compensation model?
- Can the client's bank also be considered when obtaining quotes? If not: Why not?
Costs of mortgage advice
- What are the hourly and total fees for fee-based advice?
- How competitive is the interest rate of the offered mortgage? Are there perhaps nevertheless better offers?
- Are kickbacks passed on to the client or do they flow into the advisor's coffers?
- Are there any hidden costs or fees?
- Do you have to commit to close the mortgage through the broker or are you still free to do so? Why do you have to undertake?
It makes sense to proceed systematically when looking for the right mortgage advisor. Consider which criteria are decisive for you. As with all important decisions, it is advisable to consider various options. Remember: a lot of money is at stake. Therefore, inquire with at least three institutions before deciding on a consultation. An initial consultation is usually always free of charge – even for fee-based consultants.