The banks look with magnifying glass at the client profile before granting them a mortgage. For example, having an indefinite contract of only one year (banks usually ask for a minimum of two years), can be key to getting a mortgage. Financial institutions seek solvent profiles with a certain seniority. There are customers who meet most of the requirements, but not all, so banks reject them. At that time the role of the financial intermediary is very important.
In other cases, lack of time or inexperience does not allow us to know all the options in the market. Therefore, having the experience of an intermediary is very important to achieve the conditions that best fit our profile.
What is a financial intermediary?
A financial intermediary can be a natural or legal person who operates with several banking entities. Thanks to his work and experience, he can offer the client the option or options that best suit his needs. For the exercise of its activity, this figure requires to be registered in the National Institute of Consumption (currently AECOSAN) and to be governed by its regulations.
How can you help customers?
The financial intermediary, due to the volume processed with the entities, can deal with a negotiation of a particular applicant with a banking entity:
- Higher financing percentages (LTV).
- Financial conditions more attractive to the applicant, especially lower interest rates.
- Time savings for the applicant
How much does a financial intermediary cost?
There are financial intermediaries such as iSaving that do not charge money to their clients. This company earns money through banks. The entities are the ones that pay you for the volume of mortgages you get.
There is also the figure of the Broker. This financier usually works with several real estate agencies and banks. In this case, customers who have their service do have to pay for their work. Their fees are usually around 5,000 dollars.
The intermediaries are the future
The new mortgage reform, currently under parliamentary procedure, has emphasized intermediaries and their future regulation through the United Hands Bank. Other European countries are at the forefront of intermediation and a larger percentage of operations are carried out by intermediaries than currently in Spain.
In the coming years the role of intermediaries will be increasingly relevant. In recent months, large financial institutions have opted for digitization, so in a very short time it will be very normal to hire products such as mortgages through the online channel: it will not be necessary to go to the entity. This fact opens a business opportunity for financial intermediaries.