What are the costs involved in purchasing a home loan?
Since 1 June 2018, everyone in the Flemish Region has been paying 7% registration fees on the purchase price of a new home. Before that, you paid 5% registration fees for modest homes (better known as the small description), and 10% registration fees for larger homes (the large description).
Are you buying a house of 300,000 euros in Flanders today? Then you pay 21,000 euros in registration fees here. Interesting to know: if your home costs less than 200,000 euros (or 220,000 euros if you live in the Vlaamse Rand around Brussels or a core city), you will receive a registration discount of 5,600 euros. The first tranche of 80,000 euros is exempt from registration tax.
What is the situation in the Walloon Region? In the Walloon Region you only pay 6% registration fees in the case of a small description (for homes with a limited cadastral income, depending on your number of dependent children) and 12.5% in all other cases. Since the beginning of 2018, you have also saved 1,200 to 2,500 euros when purchasing your first home. You do not pay any registration fees on the first bracket of 20,000 euros.
And what about the Brussels Region? The small description does not apply there and you always pay 12.5% registration fees. However, since January 1, 2017, you will receive an interesting discount if you buy a property of less than 500,000 euros. You then do not pay registration fees on the first tranche of 175,000 euros, which means a saving of 21,875 euros.
Be sure to read on because below you will find a handy calculation module to simulate all your costs.
Notary’s fee depends on the purchase price of your home
The notary’s fee depends on the purchase price of your home . The exact amount of this wage is laid down by law. In other words, you must charge each notary the same amount. Because of the wage you do not have to compare notaries. For a home of 300,000 euros, you pay 2,477.65 euros for the notary’s fees. You also have to pay 21% VAT on this wage and the additional administrative costs.
The notary charges administrative costs for drafting the deed of purchase. On the one hand you pay for the actual transfer of the deed . You must also take into account additional administrative costs . The cost for this varies from municipality to municipality.
What do these administrative costs entail ? We are talking about research work in which, among other things, soil certificates and urban development and cadastral extracts are requested by your notary.
Are you taking out a mortgage loan? Then you repay capital and interest every month. Also take into account file costs that the bank charges you. The registration of your loan by the notary in the credit deed also entails costs. This concerns registration rights on your credit, mortgage law, administrative costs and the fees of the notary and mortgage custodian.
Debt balance insurance
A balance insurance policy is important if you take out a home loan. In the event of death, the insurer pays back the insured amount of your loan.
You are not legally obliged to take out a balance insurance, but it is strongly recommended. This way you prevent your partner or surviving relatives from getting into financial trouble. In addition, a debt balance insurance is contractually mandatory with many banks. It is often a condition for them to grant you a mortgage loan.
You do not have to take out this debt balance insurance with the financial institution where your loan is contracted. Comparison is definitely worth it!