How to recognise good financial advisor?

1. The mortgage advisor is not a sales representative

A good mortgage advisor is usually an independent so he should logically cooperate with several financial institutions and not only offer products from one of them, otherwise it would be a sales representative of a particular bank. The main reason why the services of independent mortgage (financial) advisors use them is primarily the wider range of services offered and their experience.

2. He listens first, then suggests a solution

A quality mortgage advisor will first listen to you, find out ideas about the acquired property, verify your financial possibilities, time frame and actually the reality of your entire project. A good advisor never offers a single solution or offer from one bank at the first meeting. From the first call or meeting, count about one week before suggesting a suitable solution and submitting a comparison of the offers of more banks or building societies.

3. Certification and passing the professional exam

Beginning 1 December 2018, the provision of consumer credit for housing (mortgages) is regulated by the CNB’s rules and all “creditors” must be properly certified. We wrote here. So make sure that you meet this condition and make sure you are not dealing with someone who will only forward your documents to your friend. Even though there has been a significant reduction in the number of intermediaries, we recommend that you find the history of your advisor in the Commercial Register or Trade Register, as well as the details of the intermediary’s age or the length of time the company operates in the market.

4. Offer of the loan

If your adviser promises you an unrealistically low interest rate, be careful. The Consumer Credit Act regulates the form of the loan offer, so it must always include: APR, interest rate, details of all fees, which are part of the total cost of the loan, the amount of the individual installments and the total amount due, the duration of the loan, information on the obligation to conclude a contract on supplementary service related to the loan (especially insurance if the conclusion of such a contract is a condition for obtaining a loan under the conditions offered).

Be realistic and not be tempted by unrealistic temptations and insist that the submitted bid contain legal requirements.

5. References, experiences

We recommend that you check the references of your consultant, ask for a phone call with a previous client. If the client was satisfied, he would certainly not refuse to help his advisor to acquire a new client. On the other hand, a serious consultant will not lure you into contact with his friends, but will rather rely on you to recommend it because you want the best for your friends.

If you have some doubts with offer of loan you have and needs our advise please contat us through the form.

Changes on Czech financial market

Housing financing at the beginning of 1 th December 2016 were changed, the rights of clients were strongly improved.

The most important benefits for clients:

1. The “cooling off” period of 14 days. Clients have now a 14-day “cooling-off” deadline prior to signing a credit agreement whereby the bank may not change the terms of the loan during this period.
2. Extraordinary mortgage payments free of charge. Newly, clients can give up to 25% extra payments every year free of charge.
3. Penalties for early repayment, in the case of exceptional life situations: sale of real estate, death of the debtor, or divorce, the penalty for early repayment is reduced only to the purposefully spent costs of the bank corresponding to the bank’s expenses for early repayment (1% of unpaid principal max. 50,000 CZK).
4. Structured offers. Banks need to provide information about the total cost of the loan in a fixed structure so that the individual offers of individual banks can be better compared with each other. Banks must indicate the RPSN.
5. Appeal against the Bank’s Misconduct, newly introduced the possibility for the client to appeal against the nullity of the contract, if the bank failed in the scoring and provided the loan demonstrably to the debtor unable to repay, this period is 3 years.

The new disadvantages for clients:

1. Stricter assessment of the applicant’s financial situation, more detailed examination of revenue and expenditure structure. For example, banks examine a bank statements of client.
2. Longer period of loan processing.