When addressing a credit institution to obtain a loan to acquire a property, we must keep in mind among the various factors, in addition to the calculation of the monthly payment in the repayment plan, of all those charges that go under the item of expenses ignition mortgage. In calculating the estimate, all the items must be included, from the costs of the preliminary investigation to the appraisal costs, passing through the costs of the notary deeds, which then go to affect the disbursement for the loan applicant. That is why, in order to avoid unpleasant surprises, it is necessary to check how much these expenses are involved in the provision of the loan: here below we present the main expenses for igniting the mortgage and what they entail for the beneficiary.
First, during the preliminary phase there are financial charges related to ‘opening practice of financing: the bank carries out all necessary investigations on the applicant to find out if your mortgage may or may not granted, and these investigations have a cost that go to the expense item of preliminary investigation. Generally this cost ranges between 150 and 300 euros, or between 0.1 and 0.5 percent of the total amount granted by the bank.
In addition to the initial costs of assessment on the applicant, there are the costs of appraisal on the property that you intend to purchase, a phase where an expert appointed by the same bank ascertains the value and records the presence of any anomalies or building abuses in the building. The cost generally ranges from a minimum of 100 to a maximum of 300 euros.
It is difficult to quantify the cost of notary fees, since the outlay may vary depending on the type of deed to be drawn up by the notary, also by virtue of the amount of the mortgage and the lending institution. Furthermore, this item must include the notary ‘s fee and the expenses due to the State for registration and all that concerns the contractual activity.
The mortgage substitute tax is a financial burden payable by the beneficiary who replaces the registration, mortgage, land registry and stamp duty together and is equal to 0.25 percent of the tax paid only if the mortgage is a bank or a joint financial company, and if you buy a property for residential use on which you can apply the benefits relating to the first house. On the contrary, if it is not the first house, the rate rises to 2 percent of the total value of the loan.
When addressing a credit institution to light a mortgage, the beneficiary is obliged to take out fire insurance whose total cost depends on the value of the property and the amount and duration of the loan itself. But this is not the only type of insurance required: some credit institutions can in fact ask the beneficiary to take out life insurance, which is further burdened by ancillary costs.
A separate chapter deserves the item early repayment of the mortgage: according to the law 40/2007 that regulates and informs the citizen about the costs of a mortgage housing there is no penalty for the early or even partial repayment of loans taken out starting from 2 February 2007 onwards, with regard to natural persons for the purchase or renovation of housing units used as dwellings, but also for properties related to the performance of their professional or economic activity. The effect of the legislation is not retroactive, so for mortgages stipulated before February 2, 2007 there is a penalty in case of early repayment of the loan: however, to meet the needs of citizens, especially given the enduring crisis in the real estate market in the last few years, a mediation was put in place between the ABI and the consumer associations, which have reached an agreement agreeing on reduced penalties.