Truly affordable independent mortgage advisors

Hello everyone,

I am new here and have a question about independent financial advisors. ;)

I had initial meetings with two different gentlemen independently. Both took a lot of time (1.5-2 hours), appeared competent, trustworthy, and I never felt like they were trying to "push" anything on me. I was completely satisfied. We each agreed that I would get in touch if needed.

As I understand it, the gentlemen are financed through commissions from the banks to which the loan seekers are referred. Both referred to over 300 banks, from which they use the software to find the best offers for the customer. Now, from the customer's perspective, there is the "risk" that advisors, due to different commission rates, do not necessarily refer to the cheapest offer for the customer. (In my case, we came to over 2% effective interest on a 10-year loan with a loan-to-value ratio of about 70%. I expected under 2% – hence my question here.)

Is that so, or am I wrong? Will the advisors always offer me the cheapest offers for me? Can I really save myself the trouble of "checking out" various institutions?

I look forward to your answers.

Thank you and best regards,

the Mops

If "independent" financial advisors receive commissions from the referred bank, I would be cautious. You yourselves sought an advisor whom we paid ourselves (about 1.5% of the referred loan amount). This one seemed somewhat more motivated during the comparison :)

Hello,

If "independent" financial advisors receive commissions from the bank they recommend, I would be cautious. You yourselves found an advisor, whom we paid ourselves (approx. 1.5% of the loan amount). He seemed somewhat more motivated when comparing :)

This is only a risk if it is not actually an independent financing broker; he lives from recommendations! Therefore, special attention should be paid, among other things, to the company name or the color of the logo; they often already give an indication of where the wind is blowing :-)

Rhenish greetings

Hello,

Is that so or am I wrong? Will the advisors always offer me the most favorable deals?
Can I really save myself the "shopping around" of different institutions?

You have already had 2 conversations, so you should be able to recognize a trend :confused:

Good and independent financing brokers not only focus on the best financing for you (depends on your personal situation) but also on generating long-term references. At some point, there will be follow-up financing ;)

Rhine greetings

You expect under 2%. For which fixed interest period?

Hi,

we had also spoken with 2 independent mortgage financiers in advance of our construction financing, but at the same time also with 2 banks and an insurance company. After the conversations, the "independents" also sounded quite good. Procurement directly from the capital market, enormous comparison possibilities, good discussions, etc.

However, once all the offers were on the table (exception: the insurance company backed out when they saw a bank’s offer, quote: "We can’t compete with that!"), it looked like this:

Practically everyone – both banks and both independents – essentially presented us with the same financing components. Subsidized loans up to the maximum amount, heating loans up to the maximum amount (the interest rates for both are fixed, after all), 2 Riester contracts (also practically no differences), and the rest via a normal loan with interest rates between 2.6 and 2.9%.

Therefore my tip: I would definitely get offers from 1-2 banks (house bank!) as well, then you can see whether the "independents" are really that great. And if in doubt, I tend to go with the house bank anyway, because they significantly depend on the fact that later no one within the family, at work, at the hairdresser, or among friends speaks badly about them...