5 reasons why you should consult a mortgage advisor

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Stephan Raczak Sep 4, 2018
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1) Hypofriend is integrated with more than 400 German banks

As opposed to your traditional house bank, we are directly integrated with the mortgage products of more than 400 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. Its important we find you the best rate on the right mortgage product and NOT the cheapest rate on the wrong product. To find out which mortgage is right for you, get started here.

2) Independent mortgage experts are licensed experts

Mortgage advisors are licensed experts. They need to pass exams and get accredited by the IHK. But we at Hypofriend want to be more than that. Finance and economics is complex. Lets be frank here. The standard IHK exams do not include even some of the basic financial calculus that is needed, for example, to calculate the penalties when you cancel your mortgage early by selling. Alas most licensed mortgage advisors do not learn macro economics or understand how interest rates are determined, let alone how to best forecast them or understand how much interest rates could move against or in favor of you.

Our solution at Hypofriend is that we have 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, that in the background does all this hard work. Our engine zooms while you drive with the guidance of our mortgage advisors, to find the right mortgage product for you.

Our friendly algorithm-powered advisors are trained to work with these models. They have the tools to explain the core decisions on mortgages and assist you in matching you the best lender.

Use Hypofriend’s affordability calculator to see what you can afford based on your personal situation.

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. 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


An educated customer is our friend. 
 

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. For example, a mere 10 basis points or 0.1% on a 200.000€ loan will result in a difference of approximately 200€ to 300€ 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 advisor do not charge the customers. Any mortgage advisor that 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 that the commission does not bias our advice. Our advisors can explain in a personal consultation. 

 

Use Hypofriend’s affordability calculator to see what you can afford based on your personal situation.