The mortgage broker is a person mandated by the borrower, so that it takes the steps with the banks in its place and negotiates the best loan offer . An experienced intermediary with a strong network and likely to get the best rates. When performing well, his performance largely covers his 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 his ability to negotiate the lowest rates. A skill he gets by putting forward these arguments:
- If the borrower only represents himself against a banker, the broker represents several files . A volume that allows him to discuss directly with the real estate hubs of banking institutions, passing “above” agency advisers.
- With advanced professional skills, the broker is able to bring his technical knowledge in the editing of a complex real estate loan.
Beyond these faculties to lower rates, the real estate broker saves time for the borrower, taking the place of him for all the solicitations of banks.
Which type of broker would you prefer?
Unlike banks, which must be put in competition, it is not wise to have several brokers work on the same file . Indeed, as each one of them risks to approach the same establishments, these last ones are likely to be annoyed.
There are two types of intermediaries:
- Online brokers: most of the time, these professionals present several offers to the borrower, built from the applicable rate grids, provided regularly by the banks. They play on the volume to obtain the best price conditions, but the customer remains in charge of part of the negotiation.
- Brokers in the field: if these intermediaries rely on the same rate schedules, they come to negotiate on the spot, the rate (fixed or variable), the fees, the amounts of prepayment allowances … Offering their client a or several highly detailed loan offers where bargaining work is successful.
What is the cost of this benefit?
Whether you choose an online real estate broker or an intermediary with a physical agency as a partner, you need to know his fees before officially mandating him. While 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 the bank charges and the broker receives a commission from the bank
- The borrower pays the brokerage fees in exchange for the removal of bank charges and the broker receives a fee from his client and a commission from the bank.
- The borrower bears all the costs (banking and brokerage), while the broker is paid by both the bank and his client.
To date, there are no situations where the client pays no fees and the broker is only paid by the bank.
In all cases, pursuant to Article L322-2 of the Consumer Code, no payment may be required before obtaining one or more loans of money . And no later cashable check can be requested. In addition, if the loan chosen does not meet the initial requirements or the mandate signed with the broker, the client is not required to remunerate him.