Table of contents
A mortgage advisor gives you personal advice and helps you secure the right mortgage. There are costs associated with this mediation. Do you want to know which factors determine the cost of mortgage advice? How best to compare the rates of different mortgage advisors? And which amounts are tax-deductible? You can read it - and more - in this article.
Go directly to:
- What does a mortgage advisor do?
- What are the costs of mortgage advice?
- Tips for comparing mortgage advice costs
- When do you pay for mortgage advice?
- Are mortgage advice costs deductible?
What does a mortgage advisor do?
If you need a mortgage for buying a home, you can consult a mortgage advisor. The advisor gives you personal advice regarding securing a mortgage. They assess your financial situation and advise on which mortgage best suits your needs. In addition, they help you fill in the mortgage application forms and ensure that all required documentation is submitted correctly and on time. Do you need help with choosing a mortgage advisor? Then read more about comparing mortgage advisors.
What are the costs of mortgage advice?
For the advice and mediation, the mortgage advisor charges costs. These costs are additional to the costs of a mortgage. The amount of the mortgage advice costs depends on several factors:
- The type of mortgage advisor
- Hourly rate or fixed amount
- Starters or movers
- Employee or self-employed
- Costs during the term
1. The type of mortgage advisor
The costs for mortgage advice vary by mortgage advisor. If you seek advice from a specific bank, the costs are lower than with an independent mortgage advisor, as only the bank's products are offered there. There is a good chance that there are other - cheaper - mortgages that you are not informed about. You pay an average rate between €1500 and €2500 for mortgage advice at a bank.
On the other hand, independent advisors or advisors from advisory chains are often more expensive, but they do offer you independent advice. They compare mortgages from different providers, allowing you to better compare. This often takes more time, which is why the costs are higher.
Note: some advisors work with a small number of providers, so you still don't see all options. Therefore, we advise you to always go to an ‘independent mortgage advisor’; they work with many different providers. Most advisors charge between €2500 and €4000 for independent mortgage advice.
The money you pay extra for the advice is usually quickly recovered when you compare it to the advantage in mortgage rates.
2. Hourly rate or fixed amount
The mediation costs also depend on how the costs are structured. Most mortgage advisors charge a fixed amount. As you read in the previous paragraph, these amounts vary per bank, independent advisor, and advisory chain. On average, you pay an amount of €2250 in costs for mortgage advice.
There are also mortgage advisors who work with an hourly rate. The average hourly rate is between €80 and €175. If your mortgage advisor works with an hourly rate, always document in writing which services are provided and how many hours this involves. This way, you will never face unpleasant surprises afterwards.
If the amount does not correspond to the services provided, you can report this to the Financial Markets Authority contact point.
3. Starters or movers
The amount you pay for your mortgage advice also depends on the complexity of the advice and the number of actions the advisor must perform for you. As a starter, you do not yet have a mortgage, so the mortgage advice is fairly straightforward. For example, you do not yet have to deal with refinancing mortgages.
That is why as a starter, you are often cheaper than as a mover (someone who already has a home and moves up in the housing market). Where you pay an average of €2250 in costs for mortgage advice as a starter, as a mover, you should rather expect €3000.
4. Employee or self-employed
Are you self-employed? You often have a more complex financial situation than someone employed. Think of variable income and different types of income (e.g., business profits, dividends, etc.). To get a mortgage, you must be able to demonstrate that you have a stable income. More documentation is needed for this. In addition, you are more likely to be rejected, or the mortgage lender may apply different interest rates or conditions.
The mortgage advisor also needs more expertise to give you good advice. Additionally, the process itself often takes longer. The advisor therefore spends more time on your application and all associated documentation. This makes the costs for mortgage advice often higher for self-employed individuals.
5. Costs during the term
Once you have secured your mortgage, the mortgage advisor (in most cases) remains available for questions about the mortgage, refinancing, and other changes. Therefore, do not compare the costs of mortgage advice solely based on the advice costs for securing the first mortgage. Also, consider the costs for a second mortgage, a new fixed interest period, or a change in mortgage form.
Some advisors charge no or few costs, while others charge significant amounts. Since the costs can vary greatly between advisors, be sure to consider this in your decisions.
Tip: every mortgage advisor has a comparison card on the website. This card states which actions they perform for free during the term. Check this and ask about it during the first exploratory mortgage meeting (usually free).
Do you want to know about the other costs you - besides the costs for mortgage advice - will encounter? You can read about it on our pages about the costs of a mortgage and all costs when buying a house.
Tips for comparing mortgage advice costs
If you want to compare mediation costs, first check the advisor's comparison card on their website. It lists the services offered, the independence of the advice, costs, and any maintenance costs. You can also see how many mortgages (from how many providers) they can compare.
Based on this, you can determine if you are interested in an exploratory conversation with the mortgage advisor. This conversation is often free. It gives you the chance to ask your additional questions and see if there is a click. That is also important because you will be 'working together' intensively in the coming time.
Before you actually engage with a mortgage advisor, they are obliged to tell you which services they will perform for you and at what rate. Can’t find the comparison card? Ask for it, as this card must be available on the mortgage advisor's website.
Tip: always check if you are dealing with a Recognized Financial Advisor. They have the right diplomas to give expert advice about your financial situation.
Through Mijn Verkoopmakelaar you can quickly and easily find the best real estate agents near you. Sign up for free and receive proposals from real estate agents in your mailbox. If you like, also immediately schedule a free appointment with a mortgage advisor. In 30 minutes, you can ask all your questions about securing a mortgage and the rates at different banks.
Find a purchasing agentWhen do you pay for mortgage advice?
Previously, the costs for mortgage advice were included in the mortgage interest. This was called the ‘commission’. From 2013, this has been regulated differently. From that year, there is a commission ban, which means that the costs for mortgage advice must be charged directly by the mortgage advisor.
If you seek mortgage advice, you pay these costs directly to your mortgage advisor.
Spread payment and financing in your mortgage
If you cannot pay the large sum in one go, ask your advisor about the options for spreading the payment. This is allowed by law, as long as you pay within two years and no additional costs or interest are charged.
Note: advisors are not obliged to offer a payment arrangement. Ask about this in advance if you wish to use it.
Sometimes you can also finance the costs for mortgage advice in your mortgage. This is only possible if there is enough room. You may borrow up to 100% of your property value. Your mortgage advisor can inform you about this.
Are mortgage advice costs deductible?
Good news! All costs for mortgage advice related to the mortgage itself* are deductible from income tax. This can only be done if the advice actually led to securing a mortgage. Each taxpayer can deduct a maximum of €3630 from taxes. Fiscal partners can therefore double this amount from taxes.
In addition to mediation costs, you can also deduct the mortgage interest from income tax. The amount of the deduction depends on the mortgage interest rate and the tax bracket you are in.
*The advice costs that are not related to the mortgage itself, such as insurance, are not deductible for tax.
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