If you purchase a property, it is financed with a mortgage loan. The interest rate of this loan is very advantageous.
This form of borrowing does entail a number of costs that are specific to this type of loan.
In this article we provide an overview of the specific costs associated with the mortgage loan .
When you start borrowing under the form of a mortgage loan there are two types of costs that play a role. There are the costs charged by the bank or lender. In addition, there are notary fees. Whoever wants to borrow money in Belgium must therefore take into account the costs below.
The cost of the mortgage loan: overview
- Estimation costs of the bank. With a mortgage loan, the property serves as a guarantee. The lender therefore limits his risk. The lender then obviously wants to know exactly what your house or apartment is worth. An estimator is used for this. The costs of the estimator are borne by the person who enters the loan.
- File costs of the bank. A mortgage loan is of course a lot more complex than, for example, a personal loan or car loan. The bank has the right to request compensation for the time that is invested in your file.
- Actual notary fees. A mortgage loan also involves costs for the civil-law notary and his office. After all, legally all kinds of research must be done at official institutions. The latter charge a fee that the notary calculates to you. In addition to a reimbursement of the costs incurred, the notary will also charge you his fee. This fee is legally determined.and depends on the amount of the mortgage loan.
- Notary fees taxes. Taxes must also be paid on a mortgage loan. These are collected in practice by the notary. This falls under the denominator ‘notary fees’, but actually these are taxes to the tax authorities. The notary transfers the received tax. This concerns registration, mortgage and the right of title. The percentages and costs are legally determined. We give an overview of this in a following article.