Online you can take out your own mortgage in more and more places as a private individual. Is your financial situation very well-organized or are you financially well-versed? Then you can consider taking out a mortgage yourself online. But is this wise? You would almost think that taking out a mortgage is a piece of cake, but this approach is far from suitable for everyone. Many people underestimate what can go wrong when taking out a mortgage .
We are talking about an execution-only mortgage, a do-it-yourself mortgage where no financial advice is involved. The closing costs for this type of mortgage are between 300 and 975 euros. For a mortgage advice with everything on it, including advice on the often compulsory life insurance policy, you are on average between 2000 and 2500 euros.
All about the do-it-yourself mortgage then? Do you think now, I do that for myself just by choosing the cheapest mortgage you are right wrong. A wrong choice for a mortgage can cost you tens of thousands of euros.
A lot of time
Closing a mortgage takes a lot of time. A lot of time. On average, a mortgage advisor spends 17 hours on advising and supervising a ‘normal’ mortgage application from a starter. A mortgage with a more difficult construction behind it goes even further into the hours. This is the case if, for example, you are a transferee, if you have a debt of a previous residence or a divorce.
So you have to do that work largely yourself if you choose execution only. What does that mean for you? Fill in endless forms and often have them sent back several times from the mortgage provider because something is missing, incorrect or unclear, while in the meantime the deadline for signing the mortgage deed at the notary rap is approaching. You also have to find out for yourself whether and how you will pay the mortgage if you are made redundant, incapacitated for work or retiring. If you doubt your own financial knowledge, just hire a good adviser because it will protect you from missteps.
Choice of mortgage form
To be entitled to mortgage interest deduction today, you can choose between an annuity mortgage and a linear mortgage. Both forms of mortgage are guaranteed to be repaid at the end of the term. The interest-only mortgage exists, but that car was not so many people anymore. All other forms, such as housing loans with an investment structure or insurance element in them, have disappeared silently and that saves a lot of choice stress.
You can find the level of the mortgage rates and closing costs of an execution only mortgage on various websites. The conditions and rates differ greatly. But despite the large number of providers, they are only suitable for a small group. For example, newcomers with a bank savings or investment mortgage often can not operate without a consultant. However, there are more exclusions per provider, but that is often only done halfway through the application and then you can start again.
Self-employed people are not always accepted for an execution-only mortgage. For many providers, such a sharp interest rate and low closing costs can only be offered in a standard assessment and application process. That is why self-employed people do not intervene, because there is little stability in, for example, their income. There are providers that accept self-employed , but only with compensation in the closing costs.
Something for you?
Whether an execution-only mortgage is for you, you have to be able to assess how your financial situation looks now and in the future. To test your knowledge, you need to do a knowledge and experience test to check whether you are financially skilled enough to start the process. The test is based on guidelines from the Netherlands Authority for the Financial Markets and is mandatory for anyone who takes out a mortgage themselves. If you pocket this test, the provider will insist on a mortgage with advice.
Independent mortgage advisor
Taking out a mortgage is not something you often do in your life and there can be a lot of things going wrong. Do you no longer see the forest through the trees, do you want everything to be arranged for you or do you find it too complicated? You’re not the only one. An independent mortgage advisor will gladly help you with this.
After all, a consultant is aware of all current laws and regulations concerning mortgages. In addition, the consultant makes the mortgage calculations daily. Request an introductory mortgage interview with Consumind Finance with an independent advisor . The first call is free of charge.