How Much Does a Mortgage Advisor Cost, and Is It Worth It?
It's one of the first questions people ask me, and the honest answer is: it depends on the scope of the service. Instead of looking for a single price, it's worth understanding exactly what you're paying for.
What are you paying for?
Focused consultation: a meeting in which we map out your needs, build a mortgage mix and prepare you for the negotiations. Suitable for those who want to deal with the banks on their own.
Guidance: the advisor submits your file to the banks, compares offers and runs the negotiations all the way to signing.
Full guidance: also covers the collateral, insurance and fund-disbursement stages. Especially suitable for complex files.
The more complex the file and the longer the guidance, the higher the cost. The right way to compare advisors is to ask what exactly is included, and up to which stage.
Is it worth it?
A mortgage is most people's largest financial commitment, and differences that look small add up to large sums. On a ₪1 million mortgage over 30 years, a 0.1% difference in interest is worth about ₪20,000, and shortening the term by 5 years saves about ₪135,000 in interest. The full explanation is in the article What Really Affects the Cost of a Mortgage.
A good advisor saves you money in three places: building a mix that suits you, submitting to the right banks, and negotiating the interest rate. In complex files, an advisor is sometimes the difference between approval and rejection.
How to choose a mortgage advisor
Experience: how many years, and how many files similar to yours.
Transparency: what's included in the price, and what isn't.
Integrity: an advisor who can also tell you "this doesn't pay off."
Chemistry: this is a process that takes months. It's important that you feel comfortable asking any question.
How it works with me
I've been accompanying clients since 2013 – more than 500 of them – through three service levels: focused consultation, consultation and guidance, and premium guidance for complex files. In the introductory call we'll understand what you need, and you'll get a clear proposal.
This article is for general information only and does not constitute personal advice.
