Expenses associated with the mortgage. Who pays what?

he registration in the Property Registry, the appraisal of the property, the agency, the Tax on Documented Legal Acts … A mortgage brings with it a series of expenses that must be assumed by the owner of the same or by the bank that grants it.
In this article we tell you what they are and the jurisprudence that the Supreme Court has established in several judgments related to the payments that borrowers were obliged to make before the new mortgage law came into force in June 2019.

Who paid what before June 2019

Before the entry into force of the mortgage law of 2019, most of the expenses associated with a mortgage were assumed by the owner of the same. For two years the Supreme Court, through several judgments, has given the client the possibility to recover 100% of some of these payments if the clause by which the payment is considered abusive. For this, the judge must consider it null and void and also the limitation period cannot have expired (on this matter there are different opinions of what it should be).
In any case, if you have formalized your mortgage before June 2019 you have the right to claim from the bank with which you signed it the expenses you assumed at the time.

And right now, what expenses does the incumbent have?

The public deed of a mortgage involves a series of expenses:
Appraisal. If the appraised value of a home is not known, you can not take out a mortgage loan. Its price varies between 150 euros and 400.
Copies of the public deed. The notary sends a free simple copy of the deed, the rest must be paid by the credit holder. Its cost depends on the number of pages but is usually around 50 euros.
The holder of the mortgage will also have to pay the opening fee of the same if it is contemplated in the conditions offered by the bank. This commission is paid only once and includes all the expenses that the entity can claim for the study, processing and granting of the loan.

And the bank?

The expenses of the notary. They range between 0.3% and 0.5% of the mortgage
liability Gestoría. Among the procedures that must be paid are the registration of the property in the Property Registry and the payment of the corresponding taxes. There is no set fee but the fees of the managers range from 150 euros to 500.
Tax on Documented Legal Acts. Since the entry into force of RD-Law 17/2018, on November 10, 2018, this expense must be assumed by the bank. Its cost ranges between 0.5% and 1.5% of mortgage liability, depending on the Autonomous Community.
It is important to remember that there are financial institutions that offer to pay for all the procedures, including the appraisal of the house.

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By Catharine Bwana