In France, homeownership has become a real headache. Duration of the loan, application fees, early repayment compensation or even borrower insurance: difficult to navigate with so many sometimes very technical subjects. To help you see things more clearly, you have the opportunity to involve a real estate broker. This professional knows the market well and can save you time and stress. He approaches the regional headquarters of banks, establishes partnerships with them and negotiates credit conditions. Please note, this service remains expensive and does not require the professional to review all the offers on the market. Côme Robet, President of CNCEF Crédit, details the fees to be paid.
A variable price chosen by the broker
Brokerage fees, also called broker fees, are the costs associated with assisting a real estate broker in your financing search. For his work, this expert then receives remuneration from the client, which is: either a percentage of the loan, or fixed fees. The broker has the choice between the two, but this professional must notify it from the start. Indeed, the law requires the broker to clearly communicate to his clients the way in which he is remunerated. They must be indicated on the mandate that you sign to validate your collaboration. “Overall, the customer pays between 1% and 1.5% of the amount borrowed“, specifies Côme Robet. Added to this are administrative fees charged by the bank. or the financial institution for processing your real estate loan application. They are generally fixed and do not depend on the broker you choose.
The broker also receives a percentage from the bank, if a partnership agreement is established. “Historically, banks paid us between 0.5% and 1%. Today, we are more between 0% and 0.5%“, he explains. This ceiling is determined by each bank.
The loan is not accepted: does the customer still have to pay?
A real estate broker is only paid for success. In other words, only when the funds have been released by the bank or after signing the notarial deed (in accordance with article L321-2 of the Consumer Code). “If we have not obtained the credit, we do not have the right to invoice, informed the President of CNCEF Crédit and added, if we take a file it is to get to the end“.
But this professional always agrees to study a file because “that doesn’t mean that when we say no today, we won’t say yes in three months“To increase the chances, the broker works upstream with his client. He has an overview of the banking market, sometimes controls the envelopes allocated to credits by each party and knows the profiles that interest the banks. “Many clients contact us with files that are too fragile (not enough savings, payment incidents, etc.). We prepare their financing request with them“, exposes Côme Robet.
Thanks to Côme Robet, President of the National Chamber of Financial Expert Advice (CNCEF) Credit for his insight.