The costs associated with a real estate credit must be addressed by the borrower with the same energy as the negotiation of the interest rate itself.
In fact, it often happens that the latter does not sufficiently discuss this aspect of the loan file with the bank, which increases the overall effective rate (TEG) and hence the cost of credit.
Sometimes, when these expenses are poorly negotiated, the borrower pays more for his credit than an offer with a higher rate, but with negotiated fees.
Review of the various costs related to the mortgage loan.
The fees do not enter much into the overall cost of a mortgage. Nevertheless, the expense is very real and these costs can be discussed during the negotiation with the bank, especially since the amount varies a lot from one organization to another.
Most banks charge 1% of the loan amount with a limit that varies according to the borrowed capital.
The amount depends on the type of guarantee put in place.
1. Mortgage fees
The mortgage is the subject of a notarial act. Its cost is relatively high since it is of the order of 2% of the amount of the mortgage.
2. Privilege registration of deniers
The privilege registration of money is just like the mortgage a notarized deed. However, this warranty only applies to old property. Indeed, the I, P, P, D can not concern a property not yet existing. The amount is much lower than the mortgage since the lender privilege of deniers does not support the tax of land advertisement.
3. The surety company
These companies are often the emanation of the banks themselves, like the housing credit company, the most used bond. The fees are composed of the commission that belongs to the bonding company and the contribution to a mutual guarantee fund.
Credit insurance is used to cover the following guarantees: death, incapacity for work and two forms of disability:
- The total and irreversible loss of autonomy
- Total permanent disability.
Loan insurance is probably one of the most important costs of a home loan.
Although subscribed most often with the bank, know that you can ask to subscribe with the insurer of your choice. This is called insurance delegation.