In France, brokerage of property loans represents around 40 to 60% of the market for bank loans for private housing, depending on the region. The broker’s fee can be broken down as follows :
- A fixed amount of commission paid by the banking or financial partners for the broker’s role as an intermediary; this is between 0% and 1% of the amount of the loan provided and is subject to a cap. Commission varies according to business partners and established agreements; it should also be noted that this does not include the redemption of loans or subsidised loans (interest-free loans, bridging loans, etc.)
- The brokerage fees paid by the customer for the advice and support provided, including assessment of the ability to repay the mortgage, looking for finance, choosing the most suitable financial institution, and signing the contract at the bank and/or the notary’s office. The fees may be a fixed sum or a percentage of the amount borrowed (1% or 2%).
In Switzerland, mortgage brokerage represents around 3% of the market. The customer pays for the initial search for financing for a new purchase (main home/second home/investment property) and the financial institution pays the broker the commission fees. The mortgage renewal service is free for the customer, as the broker is paid by the financial organisations (the most common situation).
Our firm receives fees in both France and Switzerland (only for looking for mortgages). Apart from the 1st preliminary study before submitting your application (including a loan calculation, if applicable) which is still free of charge after 25 years, you may be invoiced for fixed fees adjusted according to the retained financial institution. They will be clearly explained to you in both the “entry document”, (also known as DER) and “the mandate to act as a financial intermediary” signed jointly with you in accordance with the legislation in force in both France and Switzerland. Please note that as an independent intermediary (broker) in Switzerland, our firm is not supervised by FINMA, the Swiss Financial Market Supervisory Authority.
Our professional ethics require us to be beyond reproach in matters of :
- Disseminating, divulging, and processing information, and keeping it secure when we are putting together applications for financing and insurance at European level (see our legal information).
- Invoicing and payment of fees in accordance with the MFC (Monetary and Financial Code), in compliance with directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property.