Notary fees mortgage: what should you expect?
Have you found your dream home? Then you have probably also carefully considered your preferred mortgage type and a mortgage advisor. But do you know what notary fees to expect? We outline what notary fees you can expect when you take out a mortgage.
Check the fees
You cannot escape them when you buy a home: notary fees. A notary is the only person authorised to register the legal ownership of a property and the taking out of a mortgage. However, notary fees can vary widely.
It is therefore useful to look around and obtain different quotes. Always ask for an itemised quote so you can see exactly what you are getting and what you are paying for it. Would you like to have a co-habitation agreement set up too? Then state that when you request the quote!
Tip: Viisi works with Nationale Notaris, so you are assured of good service and a fixed rate of € 1,165 (all-in price for the deed of conveyance and the mortgage deed).
Notaries and newbuilds
Have you opted for a newbuild home? In some cases, you may not choose a notary yourself but are instead allocated a so-called project notary. A project notary knows everything about ‘your’ newbuild project, so that your notarial affairs can run as smoothly as possible.
Below you can find a guide to the notary fees you can expect in most cases.
1. Deed of conveyance: € 500 – € 1,000
The deed of conveyance is the document that officially denotes completion of the transfer of the property into your name. The deed of conveyance includes the conditions stipulated in the contract of sale.
If you purchase an existing property, you are often faced with costs payable by the buyer. This means you need to foot the bill for the deed of conveyance, amongst others things. In the case of newbuilds, the vendor pays for the deed of conveyance.
2. Mortgage deed: € 500 – € 1,000
The mortgage deed denotes that the lender’s mortgage offer has been officially signed. The home of which you have just become the owner is thus subject to a mortgage. From this moment, the buyer will therefore have a mortgage in their name. This document also formalises the fact that the property serves as collateral for the lender until the loan has been paid off. This means the lender may sell the property if you default on your loan.
3. Cohabitation agreement (if required): € 200 – € 600
Are you taking out the mortgage in your name as well as your partner’s? Then it is useful to have a cohabitation agreement drawn up (if you are not already married or in a registered partnership). The notary does this for you too. Have them advise you on the contents of the cohabitation agreement and any will(s).
You usually have to make a separate appointment with the notary to establish everything that needs to appear in the cohabitation agreement. For example, division of possessions and costs. The notary will prepare the definitive cohabitation agreement based on this conversation. You will often sign this at the same time as the mortgage deed and deed of conveyance.
4. Costs for entry in the land register: € 77 – € 126
Transfer of the property is only complete once the notary has registered a copy of the deed of conveyance and the mortgage deed with the land registry and public registers. You therefore pay your notary for this service too. Check in advance whether these costs are included in the price or whether the costs are additional.
Other costs payable to the notary
Costs for the abovementioned services are payable to the notary for services rendered. But the buyer also needs to pay more money to the notary for the transfer. The notary then pays these sums to third parties on your behalf. In most cases, these are:
5. Security (deposit)
You pay the so-called security deposit to the notary prior to transfer. The vendor often requires 10% of the purchase price as a deposit. You can pay this yourself via the notary if your own funds are sufficient to cover the cost. Are you financing the whole of the purchase price via your mortgage? Then you receive the security deposit back after completion (after settlement of the other costs). A bank guarantee is another option: the lender thus promises to pay the vendor if necessary. The bank guarantee will cost you no more than 1% of the deposit.
6. Settlement of costs, levies, etc.
The previous homeowner will often have paid municipal taxes, levies and any Homeowners Association costs for the whole of the calendar year. The buyer is responsible for these costs from the moment of transfer.
7. Transfer tax
You also have to pay transfer tax when you buy a home. This tax amounts to 2% of the purchase price. This sum is paid to the Tax and Customs Administration via the notary.
8. National Mortgage Guarantee (NHG)
Are you purchasing a home under the Dutch National Mortgage Guarantee (NHG) scheme? That will cost you a one-off payment of 1% of your total mortgage loan.
In consultation with the notary, you can also pay the valuation fees, any fees for mortgage advice and any mortgage broker fees via the notary. However, most buyers pay these costs to the relevant parties themselves.
What about your situation?
Every purchase is different. It is therefore advisable to first check with your mortgage advisor what you need to record via the notary. Then you know exactly what to ask for when requesting quotes for notary fees.
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