The subscription of a mortgage involves a number of costs for the borrower, who must indeed repay the borrowed capital, but also the interest and ancillary costs, the latter including the handling fees.
The principle of the expenses of file
Usually amounting to 1% of the amount borrowed, the processing fees charged by the bank on a mortgage can also be established on a flat-rate basis. In all cases, they cover the various expenses related to the preparation of the file.
These fees are included in the TEG (total effective rate), ie the overall cost of the mortgage.
It is therefore important to know these fees right from the start, in order to know precisely the amount of the loan to be repaid. Similarly, it should be checked whether the application fees applied are exclusive of taxes or taxes.
Note that the zero-rate loan is exempt from this type of fees, as well as real estate loans, not concerned by the application fees.
On the other hand, in case of refusal of an offer of loan, the bank has the possibility to request a study fee, the amount of which is fixed by law at 0.75% of the amount borrowed, within the limit of 150 €. These costs must, however, be mentioned in the loan offer for the lender to demand payment, otherwise, the borrower may refuse to pay this amount.
What to remember about the fees
They are included in the mortgage loan TEG; the borrower is thus clearly informed of this cost when validating the credit offer
They are regulated and represent on average 1% of the borrowed capital
They are capped for certain types of loans, like the loan of social accession, where they can not exceed 500 €
In some cases, depending on the lending institutions, the application fees may be negotiated or even canceled.
It should be borne in mind, however, that the application fees are an additional cost to be taken into account in the case of a home loan, but that they represent only a relatively small proportion compared to the cost. the total amount of the loan, including principal to be repaid and interest.
At the same time framed by the legislation and left at the discretion of the banking institutions, the expenses of file have an impact on the global cost of a mortgage, but remain nevertheless rather high. For a credit of € 100,000, the application fee will be € 1,000.