If you are thinking of acquiring a new home this 2021 this information interests you and is that after the new mortgage law imposed in June 2019, the assumption of mortgage expenses has changed considerably.
We tell you who pays what and who assumes what.
I’m going to apply for a mortgage, what are your expenses?
The first thing you have to know before applying for a mortgage loan is that in addition to facing the fee every month, there are a series of expenses associated with the operation that you will have to assume. Some of these expenses must be paid before the mortgage signature as is the case of the appraisal and others after formalization.
Let’s see what are the expenses involved in the public deed of a mortgage loan:
Notary
The notary is an essential and mandatory professional who attests to the formalization of the mortgage operation. For this reason, it applies tariff rates that usually range between 0.3% and 0.5% of mortgage liability. A major will have to pay the costs for copies of the deed requested by the client.
Registration
The fees for registering the property vary between 0.1% and 0.3% of mortgage liability.
Agency
The managers are the ones who carry out the procedures for the registration of the house in the Property Registry and the payment of the corresponding taxes. Their fees are usually between € 300 and € 500 depending on the agency.
Tax on Documented Legal Acts
This is a very controversial type of tax since depending on the Autonomous Community in which you are you will pay one amount or another. Its contribution ranges between 0.5% and 1.5% of mortgage liability.
Assessment
Essential and mandatory element to calculate the market value of housing. From this amount, the percentage of concession by the bank will be applied. The price of an appraisal is between € 150 and € 400.
Who should assume the payment of these expenses?
After the modifications of the mortgage law implemented in June 2019, the mortgage applicant benefits greatly since most of these costs are assumed by the bank.
What expenses does the bank assume?
Those of notary, agency, registration and the tax of documented legal acts will be assumed by the financial institution.
What expenses does the client assume?
The appraisal of the property and also the copies of the public deed on the property requested by the client to the notary.
Taking into account the volume of expenses associated with the mortgage that you must assume as a client, it is necessary that before launching to apply for the loan you review your level of own funds.
If the average value of a home appraisal in our country is € 350 and requesting a copy of the mortgage deed from the notary costs about € 50, you must have approximately € 400 before starting the process.
We want to remind you that if you already have a mortgage formalized before June 16, 2019, you have the right to claim from the bank all the costs that you incurred at the time and did not correspond to you.