Expenses of a Mortgage Loan: Everything You Need to Know

When hiring a mortgage for the purchase of your home you must assume a series of expenses that are linked to this financial product. If you want to know what they are, their characteristics, which ones you can avoid and the cost of each of them, do not forget to read this practical guide prepared by BillCare.

Undoubtedly, you have already heard about the associated expenses of a mortgage, which are not more than those expenses that you will have to pay when buying your home through this type of financing.

Let’s review in the following tables everything you need to know.

1. Expenses related to the financial institution

1. Expenses related to the financial institution

Expenses that you will have to pay to the bank:
Expenditure Amount Estimate for € 150,000 Important
Interests Current maxibank (0.168) + a differential of 2.90% Mandatory expenses
Opening commission It depends on the bank, but is usually between 0 and 3%. Normally it is set at 1%. € 1500 You can negotiate with the bank to eliminate or reduce it.
Study commission It depends on the bank. It is usually between 0.50 and 1%. € 750 Your amount can be negotiated with the bank.
Special conditions It will depend on the conditions of the contract and the associated products (home insurance, life insurance, etc.). € 550 They can be negotiated with the bank and are not mandatory.

2. Notary fees and registration

2. Notary fees and registration

Notary fees and registration:
Expenditure Amount Estimate for € 150,000 Important
Notary Between 0.1 and 0.6% of the total amount of the mortgage. € 300 It is a mandatory expense that you can not negotiate or eliminate.
Registry Between 0.2 and 0.3% of the purchase price of the property. € 200 It is a mandatory expense that you can not negotiate or eliminate.

3. Management expenses

3. Management expenses

Administration fees:
Expenditure Amount Estimate for € 150,000 Important
Appraisal Between € 200 and € 500. € 300 It is a mandatory expense that can vary depending on the characteristics of the home and the contracted professional.
Cadastral verification The price is usually between 10 and 50 € € 40 It is a mandatory expense that you can not negotiate or eliminate.
Agency The value will depend on the contracted manager. The fixed price can range between € 100 and € 300. € 200 It is a fixed price that you will not be able to eliminate or negotiate.

4. Expenses for taxes and / or taxes

4. Expenses for taxes and / or taxes

Expenses for taxes and / or taxes:
Expenditure Amount Estimate for € 150,000 Important
Documented legal acts Between 0.50% and 1.5% of each operation (concept of purchase and amount of the mortgage) € 2000 It is a mandatory expense.
Capital Transfer Tax (ITP) Only for second-hand transmissions. The value will depend on the Autonomous Community but is usually between 6 and 11%. € 7600 It is a mandatory expense, but some Autonomous Communities subsidize this tax.
Value Added Tax (VAT) Only for first transmission houses. Currently it corresponds to 10% of the price of the property. € 15,000 It is a mandatory expense and can not be modified.

Each bank is different

Each bank is different

It is important that you know that each bank manages both its own values ​​and its own portfolios of professionals (notaries or managers).

In this sense, the expenses that we have listed above can vary considerably from one entity to another, however, here we have indicated the average costs that you will have to pay.

In turn, do not forget that there are certain expenses in which you can negotiate with the responsible entity so that they can be reduced or eliminated.

It is estimated that a person can achieve a gross economy of up to 38% in the costs of their mortgage. However, to achieve this value you must negotiate very well with each entity.