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Mortgage costs
The costs of a mortgage can be summarised as follows:
- Bank valuation fee
- Bank arrangement fee
- Stamp Duty
- Notary fees
- Property register fees
Bank Valuation Fee
Calculated as a percentage of the valuation but is normally in the region of 300 to 750 euros. For larger properties the rate can become 1% of the valuation.
Bank Arrangement Fee
Normally between 1% to 2% of the mortgage amount.
Stamp Duty (Impuestos Actos Juridicos Documentados)
This is a tax applicable to obtaining a mortgage, which is usually 1% of the mortgage liability.
Notary Fee
In the same way the purchase has to be inscribed in front of a notary, the mortgage deed must also be inscribed and the notary will make a charge for this.
Law establishes these costs as a percentage of the mortgage liability and as such 67.61 euro plus between 0.0338% to 0.023%.
Property Register Fees
These costs also are established as a percentage of the mortgage liability and are 18.03 euro plus between 0.131% to 0.015%.
As you can see the costs of obtaining a mortgage can be significant, therefore it is advisable to apply for the largest mortgage you can afford as increasing the loan or remortgaging at a later date is an expensive process.