Before you take out a mortgage loan, it is a good idea to be properly informed so that you are not surprised by the cost. Most credit claimants think that it is enough to know the interest rate of the loan, the amount of the installment payment and the basic fees (valuation fee, land administration fee, attorney’s fee, etc.). Many are unaware that there may be costs that you do not expect. Now you can read about the special fees that apply when you take out a mortgage.
Taking out a mortgage is not an easy process. In addition to income, the bank thoroughly examines the property offered as collateral. Because of this, there are many special fees associated with it. Most of them are familiar to everyone, and they count on them before applying, but there are some that the borrower does not expect.
Special fees when taking out a mortgage
For Home Loans – Transfer Fee
The amount disbursed by the financial institution must be remitted to the seller. You would think this is the same as the disbursement fee, which is free at most banks. In many cases, the lending institution transfers the loan amount from a separate technical account, which means that the fee for the transfer is the cost associated with that technical account, which is independent of the type of its current account. This means that there is no low transfer fee on the current account. This cost depends on the amount of credit.
Monthly installment collection fee
This is the cost of deducting the monthly installment from your bank account. There are some financial institutions that charge a fee for this. The rate is 0.3-0.5% of the installment.
Prepayment Cost – Debit Verification Fee
There is a prepayment fee for the loan. Almost everyone knows this. But fewer people know that a certificate on the amount of a particular debt costs money. This certificate is only required if the loan is redeemed early. It costs about a thousand forints.
Postpay Fees for Borrowing
Many of the cost of applying for a loan is borne by banks as part of various borrowing campaigns. These include, for example, the cost of drawing up a debt instrument, the valuation fee, or the disbursement fee. Which bank you reimburse or release may differ from institution to institution. It depends on the specific action. Usually these discounts are not given free of charge by banks, they impose conditions. For example, you are expected not to repay your loan for a specific period of time;
Technical Inspection Fees
For loans where the claimant receives several installments, the credit institution expects the property to be subject to a subsequent valuation before disbursing another installment. This is because the bank will make sure that the amount paid out so far has been properly used. However, there is a fee for this additional valuation, which must be paid for by the loan applicant. This can cost up to $ 50,000, depending on how many stages are paid out.
APR ( Annual Percentage Rate ) is an annualized cost expressed as a percentage of the loan’s interest and related charges. It shows you how much the loan will cost. The APR is calculated in accordance with the law. Contains most of the fees so it shows a relatively fair value. However, there may be costs that are not included in the APR (Certificate of Debt, Prepayment Fee, Certificate of Debt, etc.).
Lelia Briscane’s Home Loan Calculator lets you see the best deals on our site so you don’t have to work your way through the branches. There is no obligation to fill out the form. When applying for a loan online, you can find out if you are eligible for a loan more quickly than personally.