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When you apply for a home loan, it is not always easy to find your way between the borrowed capital and the costs generated by the credit. Insurance, interest and fees are just as important elements that it is important to understand in order not to unnecessarily increase the cost of credit.

Real estate credit: what are the fees for the file?

In the context of a mortgage, the handling fees paid to the bank are primarily used to finance the study and the assembly of your file made by your banker or agent of the credit agency. They are included in the TEG (Global Effective Rate) and are payable only if the loan application is accepted. In case of refusal, the file fees are usually paid by the financial institution. Although it is not mandatory, it is a commercial gesture practiced by all. Be aware that if you use a broker to find the best possible rate, you will have to pay a brokerage fee but also a fee to your bank.

What is the amount of the fees?

The amount of the registration feesr depends on the amount you borrow, the type of loan and also the financial institution. It usually represents between 1% and 1.5% of borrowed capital. If you take out a credit of 100,000 euros, then you will have to pay 1,000 euros of fees. Be aware, however, that application fees are regulated and capped in some cases. For example, in the case of a social loan, the application fee can not exceed 500 euros. Fees are sometimes free when the loan is regulated (such as the zero rate loan), when the bank makes a promotional offer or if you go through the postal bank.
Finally, make sure to check if the amount of the file fees communicated by the financial institution is tax-free or all taxes included. This will save you a lot of surprises.

Are the application fees negotiable?

Know that it is always possible to negotiate the fees from your bank to reduce the cost of your mortgage. But be careful, do not waste too much energy getting a discount on the fees because it is much more interesting for you to get the best rate possible. It is better to get a mortgage with high fees and a low interest rate rather than the other way around.

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