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How to identify a good advisor

Always check whether the organisation for which the advisor works has a licence from the AFM.

A good advisor:

  • always checks whether you have understood the explanation.
  • answers any questions you may have.
  • provides an advisory report on request.

Questions to be asked by any advisor

  • The maximum monthly amount you want to pay.
  • Your income, expenditure, debts (e.g. loans) and assets (e.g. your savings).
  • Your plans for the future: whether you want to work less in the future or retire (early).
  • Whether you want stable monthly outgoings or outgoings which vary from month to month.
  • The amount you want to pay off.
  • The risk you want to take when paying off your mortgage.

A good advisor will calculate the gross (without any deduction of the interest) and netto (after deduction of the interest) costs of a mortgage as they would apply right now and also those which apply in, for example, 10, 20 and 30 years time.

Tips

  • Make appointments with a number of different providers or brokers. That will enable you to find out more about the mortgage possibilities and make better comparisons.
  • Compare the costs and commission with another intermediary, who works with other banks and insurers. Such comparisons can be carried out on certain websites.
  • Ask an intermediary how much commission he gets on the product he is advising on. An intermediary is obliged to inform you how much he is actually paid (brokerage fee and continuous commission) when selling you a complex product. He has to tell you the real amount and may not, for example, express it in terms of percentages. He has to do this before the agreement is concluded.

Examples of common complex products

  • investment-based mortgages
  • equity-linked insurance
  • investment funds
  • single premium policies
  • life insurance(if you pay a premium)
  • annuity insurance
  • life course equity-based insurance

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