When you take out a mortgage, you will automatically have to deal with a mortgage advisor. This advisor will help you find a suitable mortgage that suits your financial situation.
To make sure this advisor is independent and can give you the best advice, it is important to know what to look out for. In this article, we will tell you how to recognise whether your mortgage adviser is truly independent.
Understand the commission scheme
One of the most important points to assess whether a mortgage adviser is truly independent concerns the commission scheme. Commission is a fee the adviser receives from the mortgage lender for advising and brokering their products. A few years ago, there were advisers who received higher commissions for certain products, which could obviously affect their advice.
Nowadays, commission for complex products such as mortgages is prohibited by law in the Netherlands. This means that the adviser receives a fixed rate from you for his services, regardless of which mortgage you ultimately choose.
This helps to ensure the advisor's independence. But beware, there are still advisers who receive commission for other products, such as insurance. It is therefore extremely important to identify all costs and ask about the commission scheme.
Check the mortgage adviser's licence
Another essential point to check is the licence of the independent mortgage adviser. In the Netherlands, every mortgage adviser must be licensed by the Financial Markets Authority (AFM). This licence confirms that the adviser meets the required qualifications and ethical standards.
It is possible to verify your mortgage adviser's licence by contacting the AFM directly or by consulting their online register. Having a valid AFM licence is a clear indication of the adviser's professionalism and reliability, which contributes to their independence.
Check service documents
Service documents, also known as DVDs, are mandatory documents to be provided by the mortgage adviser to the client. These documents state exactly what services the adviser offers, how the work is carried out, what the costs are and how payment is arranged. These documents should be drawn up in a clear and transparent manner so that you, the client, know exactly where you stand.
An independent mortgage broker will always present a service document that is in line with AFM policy. Checking these documents is a crucial step in assessing the mortgage adviser's independence. Misleading or unclear information in these documents may indicate a lack of transparency or even unfair practices. It is therefore advisable to always take the time to go through these documents thoroughly and ask for clarification if necessary.
Ask through
Finally, it is essential to investigate what offer the mortgage adviser has. An independent adviser can offer mortgages from a wide range of providers and will not be limited to a single mortgage provider. He or she should be able to present you with a variety of options to suit your specific needs and circumstances.
If the adviser presents only a limited number of options or seems to favour certain providers, this may indicate that he or she is not fully independent. It is always advisable to ask your adviser specifically about the scope of their offer.
For independent mortgage advice, visit the Univé website.