Written and professionally reviewed by the Ailon Financing Solutions team
First of all, is it even necessary?
Honest answer: not always.
If you have a relatively small mortgage, a simple financial profile, large equity and you understand yourself what a mix is, you will probably manage on your own.
The consultant comes into the picture when there is complexity or whenThe sums are large. And in most cases in Israel, both exist.
What does a consultant really do?
There is confusion between three different things.
mortgage brokerage It is mainly to send you an offer from a bank. This is a limited service.
Mortgage advice It is to build a mix that is adapted to your goals and to manage an interest rate tender with several banks at the same time.
Financial support It is the broadest: mapping the situation before looking for an apartment, dealing with barriers, escorting until the case is closed, including the collateral phase.
When someone says "mortgage consultant", you should find out what they are actually talking about.
The difference with the bank
A bank teller is not the bad guy in the story. He is usually professional and decent.
But he represents one bank, and he has goals. He will offer you the best product his, and has no way to offer you the best product in the market.
An independent consultant submits the same file to several banks at the same time and makes them compete. That's all the difference, and it's worth the money.
Six questions to ask before signing
1. Do you receive a commission from the banks?
The most important question, and there is no gray answer to it. A consultant who is compensated by a bank cannot be objective towards him, even if he is an honest person. Ask for the answer to appear in writing.
2. How is the fee determined?
A fee that is a percentage of the mortgage amount creates an interest in increasing your loan. An amount determined according to the complexity of the case, agreed in advance in writing, is preferable.
3. How many banks will you contact?
If the answer is "one or two", you did not receive a tender. You received an offer.
4. What happens in the collateral phase?
This is the stage after the signing, where the collateral is registered and the case is closed. Many processes get stuck right there, and many consultants have already finished the work. Ask specifically how far the escort goes.
5. What happens if you find out that I should not?
A consultant who will tell you "I checked, it's not worth recycling" is the consultant you want. Those who always find it worthwhile, check out why.
6. Who will actually handle my case?
Sometimes you know one person and another therapist. Ask who the close advisor is, and if he will change along the way.
warning signs
A promise of a certain interest rate before they saw the case. It is impossible to know what you will get before checking income, liabilities and assets. Anyone who promises a number in the first phone call is a salesman, not a consultant.
Click to sign fast. "This price is valid until the end of the week" is a sales technique, not financial advice.
Focus on interest only. The interest rate is one parameter. Mix, spread of years, future flexibility and repayment fees are just as important. A consultant who only talks about interest misses most of the picture.
Lack of transparency on fees. Everything should be in writing, in advance, with no surprises later.
There are no recommendations in the name. Ask to speak to previous customers. A good advisor will be happy.
How much does it cost, and what is it worth?
The fee varies according to complexity. A simple first home portfolio costs less than an investor portfolio with three properties or a previously rejected portfolio.
The right question is not "how much does it cost" but "What is the ratio between cost and savings".
It is impossible to determine a repayment ratio that is representative of every mortgage. The cost depends on the interest rate, period, routes, index and changes along the way. Therefore, the proposed mix is compared to an alternative for the same amount and period, and monthly repayment, total payment, exposure to the index and interest and exit fees are checked.
The fee is justified only when the scope of the work and the possible value are clear. Ask to see how the alternative is measured, which banks are tested and what you will receive in writing. A low price is not an advantage if there is no planning and comparison, and a high price is not proof of savings.
when to contact
The common mistake: sign a contract and then look for financing.
Once you've signed, you have a schedule and pressure. Pressure is the enemy of good negotiation.
The correct point is Before you start looking for an apartment. So you can set a real budget, identify barriers and fix them, and reach the market with an in-principle approval in hand.
How it works at Ailon
We do not receive a commission from any bank in Israel. This is not a marketing statement but a structural decision: when we have nothing to gain from the bank, we have no interest in directing you to a certain body.
The fee is determined in advance in writing according to the complexity of the case, and is not a percentage of the mortgage amount. The first call is given free of charge, and if we find that you have nothing to spare, we will tell you straight away.
Each client is assigned one advisor who accompanies from the beginning to the closing of the case, including the collateral phase.
The bottom line
A good mortgage advisor is not the one who gets the lowest interest rate. He is the one who builds you a structure that fits your life and tells you the truth even when it is uncomfortable.
Ask the six questions. The answers will tell you everything.
Preparation for an informed choice
Prepare the needs and questions in advance with the help of The brief generator for a mortgage meeting And check too How much does a mortgage consultant cost and what is included in the service.
