The real estate broker is an intermediary responsible for negotiating the best financing terms for his client. He accompanies and advises him in his loan application.
From the calculation of borrowing capacity to the release of funds, the broker intervenes at all stages of the mortgage. In which cases is it wise to go through it? What are the advantages for the borrower? All the explanations.
Applying to a broker: the benefits
The broker’s mission is to find you the lowest rate, the most advantageous conditions and the best guarantees. For this, he relies on his wide network of partners and his knowledge in the banking field. Due to the large volume of loans it brings, this professional can negotiate directly with real estate centers and lending institutions.
In addition to obtaining a preferential rate, the broker is able to give you personalized advice and accompany you throughout the subscription. This can be particularly interesting if you have an atypical profile (CDD, no contribution, etc.).
Appealing to a real estate broker finally saves time. Indeed, this intermediary is in charge of carrying out all the steps related to credit for you.
The use of a broker is not always useful
However, some borrowers will not find a more advantageous credit offer through a broker. This is particularly the case for those with low incomes (for example, a couple earning between 3,000 and 3,500 USD per month). In this situation, the broker can contact specialized organizations but is not sure to obtain a significant decrease in the interest rate. The risk for the plaintiffs is then to commit to a loan that is too high with a longer repayment period.
Thus, there is no precise sum from which it is interesting to use the services of a broker . It depends more on your profile and your financial situation. In any case, this professional can help you determine what are your chances of obtaining a mortgage and at what rate.
How much does a loan broker cost?
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Some real estate brokers are directly remunerated by banks and therefore do not claim any brokerage fees from clients. Others charge a processing fee when subscribing for the home loan, the amount of which generally corresponds to 1% of the capital borrowed, plus brokerage fees. In any case, all the fees paid by the borrower appear on the standardized information sheet (FSI), which must be given by the bank with the credit offer.
It is not uncommon for brokers to fail to inform their clients that they will have to pay fees to their bank. All this information must be clearly mentioned in the proposal or the mandate signed with this intermediary.