Caribbean Netherlands: AFM publishes guideline for mortgage advice in the Caribbean Netherlands
The Netherlands Authority for the Financial Markets (AFM) today publishes the Guidance on Mortgage Advice for the Caribbean Netherlands. Through this guidance, the AFM supports mortgage advisers in providing suitable advice to consumers seeking to enter into a mortgage loan.
Taking out a mortgage is one of the most important financial decisions many consumers will make in their lives. The financial consequences of this decision often continue for many years. For this reason, the BES Financial Markets Act (Wet financiële markten BES) sets requirements for the quality of mortgage advice.
The guidance provides an example of how advisers can comply with the statutory requirements, but it does not have the status of laws or regulations. Nor is it a comprehensive handbook on mortgage advice. The guidance offers examples and good practices that can help advisers provide advice that is aligned with the client’s financial situation, objectives and willingness to take risk.
The guidance (pdf, 400 kB) illustrates how advisers can give effect to the statutory standards for advice and support consumers in making responsible financial choices. Topics covered include the advisory process, affordable housing costs, life events, mortgage refinancing, interest rate risks, climate risks and tax considerations.
With this publication, we aim to contribute to the quality of mortgage advice in the Caribbean Netherlands and to well-informed consumers who make financial decisions that are appropriate to their current and future circumstances.
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