There are cheaper options, because you can quickly save up to € 1,100.
When you take out a home loan you have extra costs, for example for drawing up the notarial credit certificate and registering the mortgage deposit.
For a loan of € 150,000, you can save € 900 to € 1,110 by limiting the guarantee in part to a mortgage mandate or a mortgage guarantee .
Mandatory visit to the notary
When you buy a house or building plot, you must pass through the notary to record this transaction. The transaction is recorded in an authentic or notarial deed . In this way, it can be directly opposed to third parties, which means that everyone knows about it and has to accept it.
In addition, you must also go to the notary for the establishment of a mortgage guarantee in favor of the bank that provides the home loan. This mortgage mandate is recorded in an authentic or notarial deed. A mortgage offers the right to a financial institution to sell the property in the event of a default by the borrower in order to collect the money together.
The recording of the mortgage loan in a notarial deed is not free. For example, for a loan of € 150,000 you pay € 4,200 to € 4,600. This amount includes the costs for the notary’s work allowance, but also costs such as the mortgage right, the registration fee, the right to writings, the fee for the mortgage custodian, etc.
Reduction of the charges
You have the opportunity to propose the banker to work partly with a mortgage mandate . For example, the mortgage is immediately registered for a first part of the loan. For the second part of the credit, you subsequently give the right to register an additional mortgage at the moment that he deems it necessary. You avoid extra costs by paying everything nicely so that the additional registration will not be necessary.
The cost of a mortgage proxy is lower than that of a mortgage. Even with a power of attorney, the intervention of a notary is mandatory, but in this case there are no mortgage rights and the registration fees are only € 50. In addition, the fee of the notary is one-fourth of that at a direct mortgage.
Suppose a credit of € 150,000 is split up into a mortgage of € 100,000 and a mortgage mandate of € 50,000, then the costs will drop to approximately € 3,300 to € 3,500.
Limitations on proxy
It is not appropriate to arrange everything through a mortgage mandate . If you want to enjoy the tax benefits of a home loan, you must take out a fully-fledged mortgage credit for this . This credit has a term of at least 10 years.
When the power of attorney is granted, no effective registration takes place. This ensures that other financial institutions establish a mortgage on the property so that they are the first to be entitled to the proceeds from the sale of that property in case of default.
In addition, you also pay a cost for converting a mortgage mandate to a mortgage registration . This cost can be slightly higher than if you would immediately take out a mortgage registration .