How does Hypofriend's Optimizer work?

Mortgages are complex and we try to hide that for our customers. But now that you’re here, you are probably curious about the details of how our recommendation engine works and what makes it so special. The difference between us and every other broker, is that we recommend the best fitting mortgage to you, based on mathematical models. We do take some assumptions into account, that’s why it's always important to speak to one of our experts for a final review of your situation.

In our questionnaire we look at a number of factors, for example

  • Your age

  • Your net household income

  • Your available savings

  • Your expected stay

  • How likely you stay shorter or longer

  • Whether you’ll own the property or rent it out in the future

  • How quickly your income will grow over time

  • Whether you are an investor with alternatives

We then compare how this situation would change given:

  • Mortgage products with different fixed interest periods

  • Mortgage products with different repayment curves

  • Mortgage products with different down payments

Since, mortgages with lower fixed interest periods are technically cheaper since they have a lower interest rate we compare them against mortgage products with longer fixed interest periods that are more expensive. We make a trade-off calculation between risk andcost.

We use bank-level stress tests for our recommendation which is a way to understand whether even in the worst-case our customers can still afford the mortgage payments down the road. Our recommendation is then based on which product offers the lowest overall expectedcost given the customer’s future expectations.

Ultimately, our customers decide what is best for them but we want to offer them the information to understand the decisions for themselves. For more information, our experts are equipped with advanced consultation software to walk you through this information in anintuitive and understandable way.

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