If you want to buy a house or an apartment in Germany, you usually need a mortgage. You can either go directly to your bank or follow the recommendation of the real estate broker. However, these recommendations are usually rather one-sided and not tailored to your needs.
But don't worry, you're not on your own in your search for the best mortgage. Here are 5 reasons why it pays to work with Hypofriend, a professional mortgage advisor.
1) Hypofriend is integrated with more than 750 German banks
As opposed to your traditional house bank, we are directly integrated with the mortgage products of more than 750 banks. Not only does this give you access to the lowest interest rates, but also access to a greater range of products than a single bank can offer.
Here at Hypofriend, we have equipped our advisors to search rapidly through thousands of offers to find you the product with the lowest interest rate – but only after we have worked with you and used our advanced algorithms to find the right mortgage product for you. It’s important we find you the best rate on the right mortgage product and not the cheapest rate on the wrong product.
2) Independent mortgage experts are licensed experts
Mortgage advisors are licensed experts. They need to pass exams and get accredited by the IHK ("Industrie und Handelskammer"). But at Hypofriend we want to be more than that.
Besides the typical qualifications, we've built advanced models and proprietary algorithms, based, among others, on some of the best work in the world on debt at the IMF and World Bank, which in the background does all the hard work. We focus our efforts on finding you the right mortgage product out of the thousands of combinations and then finding the lender that offers this product at the lowest price.
Our friendly algorithm-powered advisors are trained to work with these models. In a free consultation, they will explain the core decisions on mortgages and assist you in matching you with the best lender: Make an appointment with a mortgage expert.
3) Mortgage advisors know the system and can help you avoid making expensive mistakes
An experienced mortgage advisor knows the complex German system. Indeed, the German mortgage system is filled with complexities and quirks. And frankly, the German nature is not to make things easy.
Here at Hypofriend, we have had to learn the German mortgage system too. We have a unique lens, though, as we know finance and many international mortgage markets besides just the German mortgage system. We combine that international perspective and finance with knowledge from some of the best and brightest mortgage advisors plucked from the German system.
We use this knowledge to help you see the trees for the forest, and identify the best solutions for you. Furthermore, we aim to explain German mortgages as simple as we can and have searched for and collected a number of our tips for you. See e.g. our Glossary and FAQs.
4) Mortgage advisors will save you time and money
Finding the right property is already hard enough. The most important factor where an advisory engine combined with a knowledgeable mortgage advisor will potentially save you thousands down the road is to find the right mortgage product that is tailored to your personal situation. This does not necessarily mean choosing the mortgage with the lowest interest rate.
First-time buyers are too often fixated on the initial interest rate and misled by the lowest rates.
Example: A mere 10 basis points or 0.1% on a 200,000 euro loan will result in a difference of approximately 200 euros to 300 euros per year.
At the same time, the most commonly overlooked decision that many first-time buyers make is locking in or fixing interest rates for a period that is either too short or too long. Being left with a pile of debt at the end of the fixed period with interest rates that have doubled since the start could result in a financial catastrophe. Similarly, having a very long fixed period may result in high cost, inflexibility, or exorbitant cancellation fees.
Getting professional advice from a mortgage advisor, equipped with the right tools, is critical to deciding which fixed interest period is optimal for you.
Besides the huge money-saving benefits, a mortgage advisor will also streamline the entire mortgage application process for you from start to finish. Here at Hypofriend, our mortgage advisors will be able to dramatically speed up the bureaucratic process of document collection and quickly assemble what is necessary for your mortgage application. All communication with the banks is taken care of on your behalf.
5) Mortgage advisors are free of cost
Mortgage advisors do not charge the customers. Any mortgage advisor who tries to charge you for the number of consultations you go through is not credible and should be avoided.
For the sake of full transparency, you should understand that a mortgage advisor gets paid directly by the financing bank that approves your mortgage. At Hypofriend, we are committed to transparency after our founder was taken advantage of and misled by a non-transparent broker.