We often hear about mortgage brokers, but do we really need them? It all depends on what we want to achieve, our goals, profile, and strengths.
But how does a mortgage broker work?
A mortgage broker is an expert in the field with contacts in various credit institutions and knowledge of their strategies and products. In exchange for a commission, they can offer you the most suitable product for your needs. Being a professional in the industry, they usually have access to advantageous conditions compared to individual citizens.
For a non-resident foreigner, obtaining a mortgage can be very complicated
, and this is where the assistance of a broker can be beneficial. They are familiar with the complexities and challenges faced by foreign buyers and can help navigate the process.
A mortgage should be seen as a product, and those who “sell” large quantities for a bank generally have better conditions. They are also up-to-date on the policies applied by banks.
Each bank has its policies, moments when they are more interested in giving mortgages, others less, or focusing on attracting a certain type of client with advantageous conditions. Yes, because a mortgage, unlike most products, doesn’t cost the same for everyone. It is riskier and generally more expensive.
A broker can help you
find an institution that finances a larger percentage of the house, get a lower interest rate, or more convenient insurance. Of course, the broker has a cost, a commission, which is usually paid only when the mortgage is approved (beware of those who ask for significant upfront payments).
Is it worth it? It depends on the calculations in each case. If you can save 15 thousand euros over the entire duration of the mortgage, even a commission of a few thousand euros can be convenient. Does it give you access to the house you really like at a convenient price? It may be worth it. Like everything, the important thing is to trust serious professionals
