REAL ESTATE – MARBELLA WOHNEN – FINANCING – What are the opening costs of a mortgage?
What are the opening costs of a mortgage?
Before formalizing the mortgage loan, you must know the costs of opening the mortgage and who assumes them: the buyer, the seller or the bank.
Taking out a mortgage to buy a house entails a series of expenses. The future owner must take into account, therefore, that to the purchase price and other expenses associated with the acquisition he must add the mortgage expenses, such as the appraisal of the property or the notary. The Mortgage Law establishes which expenses must be assumed by the buyer and which by the bank.
What expenses does the future owner assume when signing a mortgage?
As established by law, to calculate mortgage expenses, the holder of the mortgage loan must assume the following expenses:
- Appraisal. It is the valuation of the property to know its price and whether it is subject to a mortgage guarantee. It is one of the most important procedures when applying for a mortgage loan. The appraisal is mandatory and must be carried out by an appraisal entity registered and registered with the Bank of Spain. As for the cost, this ranges between 200 and 600 euros and is valid for six months from the date of its issuance.
- Notary. The buyer must pay for the copies of the mortgage loan deed that he decides to request. This document has a reduced cost, between 0.60 and 1 euro for each sheet.
- Opening commission. When taking out a mortgage, the bank may charge an opening fee, the amount of which is not limited by law. It generally represents a cost of between 0.1% and 2% of the borrowed capital. For a mortgage of 100,000 euros, the cost is between 100 and 2,000 euros. The banking entity will have to inform if it is going to charge this fee and how much it amounts. Some entities do not charge it, this would be the case of Banco Sabadell, which has eliminated this commission when taking out a subsidized mortgage.
What are the expenses of buying a home?
In addition, as already mentioned, there are some expenses for the purchase and sale of the home. These increase the cost of the operation, between 10% and 15%. These expenses include the notary, the agency and the cost of registering the deeds in the property registry, as well as taxes.
The latter differ depending on whether you buy a new construction home or a second-hand one. In the first case, the value added tax (VAT) is paid, set at 10% – except in the Canary Islands, where the Canary Islands general indirect tax (IGIC) is applied, which is 6.5% -, and the AJD , which also changes depending on the region. In the second, the property transfer tax (ITP) is paid, which varies depending on the autonomous community in which the property is located, and can range between 6% and 10%.
Having the advice of an expert is essential to be clear about all the information related to the cost of a mortgage loan and resolve all doubts that may arise during the home purchasing process.
The mortgage is a very important decision when buying a home. As experts in the real estate sector and, above all, as buyer agents that we are, our advice is that you always let yourself be advised by professionals who know which mortgage is best for each person.
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