Different costs are involved in setting up a mortgage, including notary fees for drafting the deed.
Fees in the mortgage
When a borrower requests a bank to obtain a home loan, he will have to settle several costs which will intervene as the financing is put in place. Part of these costs will be able to be included in the mortgage, others will be borne by the borrower. If the borrower requests a bank, he will have to assume administrative costs and even brokerage costs if he uses a mortgage broker. These costs are in fact linked to the administrative procedures and the time spent on processing the file, they will simply be included, not the amount of funding.
There will also be guarantee fees , either the bank will offer a bond through a surety company, or it will offer a mortgage guarantee requiring to go to the notary and entailing registration fees as well as notary fees. There will also be notary fees for the drafting of the deed , it is simply the official document which will attest to the ownership of the property for the purchaser. If the guarantee costs are going to be included in the amount of the mortgage, the notary fees linked to the drafting of the deed will generally be invoiced to the borrower.
Can we include notary fees in the mortgage?
There are two types of notary fees that can be clearly distinguished, there are first of all the fees for drafting the authentic instrument which are fixed by a national scale, the notary is required to apply the amount fees based on the scale. But the firm will also apply fees, linked to the processing of the file and it is essentially the remuneration of the notary. Overall, it is estimated that the amount of notary fees can reach at most 8% of the amount of the property, an amount that can be reduced in the context of a house construction (on average 3%), because the fees of notary will only concern the acquisition of the land and not the amount of the construction.
When the bank offers a home loan offer, it will take into account all the costs that may arise in connection with the implementation of financing. Notary fees will be part of these elements taken into account and the bank will be based on the national scale as well as the average of fees applied by notaries. This amount can be more or less variable depending on the notarial firm, it is for this reason that the bank offers to settle these costs via the personal contribution of the purchaser. If the latter does not have a personal contribution, the bank may offer a 110% mortgage, it is quite simply a mortgage contract providing for the acquisition amount and an additional 10% for the financing of costs, this allowing to cover everything and to avoid the borrower from paying for his personal finances notary fees.
Simulate a mortgage with all related costs
It is strongly advised in the context of an acquisition project to simulate obtaining a home loan, which will make it possible to obtain a very precise estimate of the costs associated with the implementation of financing. This also allows you to be aware of the loan conditions currently offered by the banks, namely the rate, the duration, the type of guarantee or even the monthly payment. This simulation is offered free of charge and without obligation .