Are you considering buying a property? Do you have an idea of the price of the house you want to acquire, but do you have a precise idea of the costs surrounding a real estate purchase? Few people master this subject and prefer to ignore, in a way, this aspect of things. However, these costs can really affect your budget. You must take them into account and face your financial situation.
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Follow the guide, in this article we reveal the costs you wouldn’t want to see. Don’t forget that you can also find on our website real estate cost simulators that will give you precise figures depending on the region where you are and the amount of your purchase.
What are the costs that affect a real estate purchase?
Costs related to the purchase of a property:
- The cost of possible works
Two situations may arise: either your future house requires renovations or repairs; or, after all, you want to make some improvements before moving in. The cost of works must therefore be taken into account.
- Notary fees
Notary fees are of two kinds: the fees for the purchase deed of the house and the fees for the mortgage loan deed.
A. Purchase deed fees
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Registration fees
This is a tax set by law that the notary must pay to the state. The amount of these fees is a percentage of the purchase price of your property. They vary from one region to another. Consult a notary office to know your rate or surf our online simulator.
In the Walloon Region, the standard registration fee is 12.5% of the market value of the property.
Under certain conditions, it is possible to benefit from reduced rates:
- 6% of the purchase price (for modest houses under conditions)
- 1.50 or 0% (for housing sold by a public housing company)
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Notary fees
Notary fees are set by law. They are the same for all notaries in the country.
In the case of a sales deed, the fee is proportional to the value of the property: percentages are applied in tranches of the property’s value.
If several notaries are involved, this fee is divided between the notaries according to the work and responsibility of each, following the sharing rules established by the professional authorities.
So if you choose another notary to follow your purchase, it will not cost you anything. The “seller” notary and the “buyer” notary will share the fees between them.
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Miscellaneous fees
The miscellaneous fees charged by the notary cover mortgage, urban planning, tax, and other legally required searches, stamp duty on the deed and its copy, deed transcription and mortgage registration fees, file fees, etc. They can vary between 650 and 1,250 euros.
B. Mortgage loan deed fees
Very often, money is borrowed to buy your home. This involves financing with a mortgage guarantee on the property.
This loan binds you to a credit institution. To obtain this loan, you must execute a new authentic deed with your notary: a mortgage loan deed, which will result in new fees.
The deed fees for your mortgage loan include 4 items:
Registration fee:
The registration fee represents a tax paid directly to the state by the notary for the registration of the deed: it is 1% of the loan amount.
The mortgage registration fee:
This fee is also a tax paid to the state by the notary during the registration of the deed at the mortgage registry. The fee is currently set at 0.30%, calculated on the loan amount.
Notary fee
The notary responsible for drafting the deed must calculate a fee, established based on the rate set by law. The amount of this fee will always be the same, regardless of the notary who drafted the deed.
Miscellaneous deed fees.
In addition to the fiscal fees and his fee, the notary will charge other fees required for drafting the deed (the cost of tax searches, mortgage certificates requested before and after the formalities, cadastral extracts, stamp duty, …).
3. Fees charged by the credit institution
These fees vary depending on the amount of your loan and the credit institution. They generally include fees for:
- property appraisal
- file processing.
