April 4, 2020

What do we gain and what do we lose applying for a mortgage with an intermediary? – Mortgage Loans

Mortgage loans are still available in many banks, but not everyone has enough jamming to carefully check the offers in each of them. It is difficult and time-consuming – especially if you do not live in a big city.

Not everyone graduated from economics, and you do not need to have a thorough knowledge of finance. The solution may be to use the services of financial advisory companies, i.e. agents. Whose services are worth choosing and is it profitable to use the help of intermediaries at all? We checked!

Financial advisor – what is his job?


In recent years, unfair practices of some advisors have come to light, who have offered clients products that are not adapted to their needs, such as expensive life insurance packages, packed in investment products, or presented potentially interested parties only offers for which they collected the largest commissions.

Fortunately, today advisors are checked very carefully and their work is subject to multi-step verification. On the internet, you can read customer reviews that will help you find the most experienced and reliable.

Financial Advisors – promotions available


Of course, advisors don’t work for free – banks that work with intermediaries reward them for selling their products. You, as a customer, do not incur any costs of consulting and you are not obliged to take advantage of the offer presented to you.

However, if you do not feel well about financial issues, an advisor will definitely help – from assistance in completing documents to a visit to a bank outlet when signing the contract.

How can advisers try to encourage us to use their services? The easiest and most proven way is, as always, a proposal of measurable and perceptible benefits.

An adviser will not only help you find an offer but will also guide you through the entire process appropriate for your hand. Explains where, when and why specific documents are needed. It will tell you which office you should go to and which form to fill out.

Do you need a different offer?

Representative example:
The actual Annual Interest Rate (APRC) for the mortgage loan offer is 3.33%. Contract duration: 30 years, total loan amount: USD 360,000.00.

The total cost of the liability paid in equal (annuity) installments: USD 206,177.78, the total amount to be paid: USD 566,177.78. Repayment is in 360 equal installments. The calculation was made on March 30, 2020, on a representative example.

Minimum and maximum repayment period: min. 5 years, max. 35 years old
Maximum APRC: 3.38%

Financial advice – when does it pay off?


If you intend to pay off the mortgage early or the difference in monthly costs of servicing the liability is not impressive for you, you can skip reading this part of the study. However, if you are not going to pay more for the convenience than you have to, think about focusing on verifying several offers that occupy top places in independent rankings.

Thanks to this, your home budget will be less burdened due to a lower margin. On the other hand, time is equally valuable and if you want to be sure that the proposals of the vast majority of banks operating in Poland will be checked from the right angle – you need to go to an advisor.

As always, in this case, it is worth considering all the pros and cons. Rebuilding the tarnished image of professional and impartial financial advice probably now has one of the highest priorities. This is a situation in which we, as clients, should make the most of the principle: “client, our master”.

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