A mortgage broker is a person mandated by the borrower to take steps with the banks for him and negotiate the best loan offer. An experienced intermediary with a solid network and likely to obtain the best rates. When it is efficient, its service largely covers its fees – when it is not free.
Why go through a real estate broker?
The main advantage of using a real estate broker is to take advantage of their ability to negotiate the lowest rates. A skill that he obtains by putting forward these arguments:
- If the borrower only represents himself Good Finance a banker, the broker represents several files. A volume which allows him to discuss directly with the real estate poles of banking establishments, passing “above” the agency advises.
- Endowed with specialized professional skills, the broker is able to bring his technical knowledge in the assembly of a complex mortgage loan file.
Beyond these faculties to lower rates, the real estate broker saves time for the borrower, replacing him for all the canvassing of banks.
What type of broker to favor?
Unlike banks, which must be put in competition, it is ill-advised to have several brokers work on the same file. Indeed, as each of them risks approaching the same establishments, the latter risk being annoyed.
There are two types of intermediaries:
- Online brokers: most of the time, these professionals present several offers to the borrower, constructed from the applicable rate grids, provided regularly by the banks. They play on the volume to obtain the best pricing conditions, but the client remains in charge of part of the negotiation.
- Brokers in the field: if these intermediaries rely on the same rate scales, they come to negotiate on-site, the rate (fixed or variable), fees, amounts of early redemption indemnities, etc. or several very detailed loan offers where the negotiation work is completed.
What is the cost of this service?
Whether you choose an online real estate broker or an intermediary with a physical agency as your partner, it is imperative that you know their fees before officially mandating them. Indeed, if some services are completely free, others claim the payment of brokerage fees.
And on this point, there is no established rule and several situations are possible :
- The borrower pays bank charges and the broker receives a commission from the selected bank
- The borrower pays the brokerage fees in exchange for the elimination of bank charges and the broker receives remuneration from his client and a commission from the bank.
- The borrower covers all costs (banking and brokerage), while the broker is paid by both the bank and its client.
To date, there are no situations where the client pays no fees and where the broker is only paid by the bank.
In all cases, in accordance with article L322-2 of the Consumer Code, no payment may be required before obtaining one or more loans of money. And no later check cashable can be requested. Furthermore, if the loan chosen does not meet the initial requirements or the mandate signed with the broker, the client is not required to remunerate it.