When choosing a mortgage, most people have a fairly clear idea of how much they need to borrow from the bank, how much money they can spend on their own home from their own savings, and how much they are willing or able to repay each month. They then compare the current interest rates on the mortgages on offer and try to choose the most suitable fixing period. “An experienced independent mortgage specialist offers much more than just arranging a mortgage. Above all, they need to help mortgage seekers set an appropriate strategy that will lead to the achievement of both short and long-term goals. A mortgage is usually a 20- to 30-year commitment, so it is not worth planning only for the short term at the nearest fixing, but for the long term,” points out Filip Křivánek, mortgage specialist at Hyponamíru.
The right mortgage specialist asks first
For some, the word strategy may evoke something complex or lengthy. In reality, it is not. An experienced mortgage specialist will be happy to help you find the best strategy for you. He or she will ask a lot of questions right from the start. He or she will try to find out as much information as possible, for example, about what you will use the mortgage for, what exactly you expect from it, how a significant rise in interest rates would affect your family budget, whether you are considering paying off the mortgage early, and so on.
“When designing a strategy, it is necessary to base it on the short-term and long-term goals of the mortgage seeker. Specific goals may include, for example, getting a mortgage as quickly as possible, taking advantage of a limited-time low-interest offer, fixing the interest rate for as long as possible, getting a mortgage with a particular bank, negotiating the lowest possible monthly payment, being able to make regular emergency payments, being able to leave the bank cheaply during the fixation period, or having more options when taking out a loan. There are many goals,” adds Filip Křivánek. An experienced mortgage specialist must be able to ask the right questions and seek answers together with the mortgagee.
You will get several suggestions for solutions
Once the mortgage specialist knows your personal goals and motivations, he or she can prepare a proposal for one or more specific strategies. At the same time, he or she will identify the most suitable offers from the various banks on the market, calculate their costs, compare terms and conditions, and present the pros and cons of each solution. “The strategy can only be prepared by a mortgage specialist who has access to the offers of most or all banks on the market. From the solutions on offer, it is necessary to choose the one that brings the best benefit to the mortgage applicant over the entire term of the mortgage. If the main goal is, for example, to keep the interest rate as low as possible throughout the mortgage repayment period, it is necessary to design the most suitable fixation period, to look for the appropriate moment to refinance the loan and also to deal with possible penalties for early exit from the bank,” adds Filip Křivánek.
Mortgage specialist for life
A mortgage specialist should be a long-term partner and advisor. Even though some of the mortgages on offer may seem very favourable now, in 10 or 15 years’ time this may no longer be the case. “Always try to find a mortgage specialist who is able to provide you with long-term service. This is the only way to be sure that they will be able to advise you on your mortgage, help you achieve your goal of paying as little as possible over time, shorten the repayment period and advise you in emergency situations such as crises, bank failures and so on,” concludes Filip Křivánek.
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