Finance the notary and guarantee fees

Finance the notary and guarantee fees

Notary fees

As a buyer, you are responsible for notary fees. These are often subject to the payment of a deposit on the signing of the sales agreement. Count about 7.5% of the purchase price in the old and about 2.5% for a construction or acquisition of a new apartment.

Good to know : Be aware that it is possible to finance the notary fees even if you have paid a deposit from your own money. Indeed, you can get the “refund” of this deposit when disbursing the loan. This can allow you to recover the amount of personal contribution to perform for example work or just keep a safety mattress.

Contrary to popular belief, they do not correspond only to the fees of the ministerial officer responsible for authenticating the deed of sale. The largest part of the expenditure corresponds to the taxes which will then be transferred to the State, the emoluments representing only a small part. The notary acts as a tax collector.

You can calculate the amount according to your project with our simulator.

The costs related to your loan

costs loan

If you do not have capital, you must also plan to finance in addition to notary fees, expenses related to the credit itself (guarantee and fees).

Warranty fees

They are proportional to the borrowed capital. Thus, the higher the loan, the higher these costs . But they also depend on the type of guarantee put in place by the bank.

If the mortgage is today less and less used in favor of the mutual guarantee, the final choice depends essentially on the quality of your file. Indeed, the mutual guarantee (often a subsidiary of the bank) is a company that performs a risk analysis in the same way as the banker and that makes a decision based on the elements that make up your application. The maximum debt ratio will obviously be essential in the decision.

Application fee

They should not be overlooked, because even if they do not really impact the overall effective rate (APR) of your loan and the cost of borrowing, you should know that they represent an immediate expense . Count 1% of the loan amount, usually capped at 500 €.

How to find a 110% financing?

How to find a 110% financing?

Since the beginning of the financial crisis, the banks’ hardening of acceptance has made it even harder for borrowers to access home loans without personal capital. It must be recognized, however, that they are understanding with first-time buyers. Indeed, it is normal that a young person who realizes a real estate project did not have the necessary time to save and build up capital.

What is personal contribution?

It is essentially composed of the capital that you bring into the operation, that is to say from your savings, a donation or a family loan. However, be aware that soft loans can be accounted for in the amount of the personal contribution. These are the zero-interest loan, the Action-logemnet loan or those from housing savings.

Important : the PTZ plus can not be used to finance notary fees.

Banks or credit institutions?

credit loan

To find your financing, you can contact the network banks such as BNP Paribas, Societe Generale, Crédit Agricole, LCL, but also specialized credit organizations like CREDIT FONCIER.

While the former are increasingly reluctant to finance notary fees, the latter are more open. However, it is strongly advised to compare the offers of these specialized organizations and read between the lines, because the conditions are not always as advantageous as with the banks of networks.

Mortgage rate for young active people

Mortgage rate for young active people

Loan offers for young people

Many banks are developing their offers to attract a population of young borrowers, attracted by the potential they present. These real estate loans for young people are mainly intended for first-time buyers and offer many advantages.

Some examples of banking offers

Loans

The LCL, for example, offers a 50% discount on its registration fees to purchasers under the age of 36 as well as special rates for borrower insurance.

The CIC, meanwhile, offers advantages to purchasers under 28 years.

As for the Banque Populaire des Alpes, it offers first-time buyers of up to 31 years of age a preferential rate, free application fees and no prepayment penalties. This last advantage can be very important in view of a resale before the end of the loan.

8 good reasons for a young worker to become a homeowner

1st reason: banks lend on long terms

1st reason: banks lend on long terms

Does having the future in front of you mean that one can commit oneself for long periods of time? Yes according to the banks that easily accept to lend over 30 or 35 years. A credit over a period of 35 years will result in a significant credit cost, but it can make it possible to make the apartment accessible which would otherwise be expensive. Indeed, rising real estate prices have put a certain number of housing units out of reach of young people.

2nd reason: real estate loans for young people are flexible

2nd reason: real estate loans for young people are flexible

Are you afraid your situation will change? Never mind, new mortgages are flexible. Modularity is one aspect of new, more modern loans. It allows to suspend, decrease or increase your monthly payments.

3rd reason: rents are expensive

3rd reason: rents are expensive

Depending on the region in which you are located, it is possible that the rents are overpriced: outside Paris intramural where the price of rent per m2 can reach 30 €, which is still 1500 € per month for a T2 of 50 m2, prices go from 5 € / m2 the most economic cities to 20 € for the most expensive cities. It will be understood, depending on where you live, tenant is not necessarily the right solution.

4th reason: build wealth and prepare for the future

Buying a home to be your main home is a great way to build capital. Even if you think you sell it after a few years, the value increases over time, you have every chance to make a good deal … provided you buy the house at the right price.

5th reason: you do not pay every month for lost funds

5th reason: you do not pay every month for lost funds

By remaining a tenant, you will pay each month lost funds rent to your landlord. A quick calculation shows that a rent of 500 € per month will cost you the trifle of 30 000 € after 5 years. Part of this sum could have been used to amortize the capital borrowed.

6th reason: take advantage of low rates

Despite a rise initiated in December 2011, interest rates remain historically low. This is the time to enjoy. If you go up a base point, your credit will cost you much more. To illustrate this example, note that for a loan of 150 000 €

To decide on the duration of your credit, consider making some simulations to determine the capital to borrow in your case.

  • Calculation of borrowing capacity: make a simulation

7th reason: benefiting from accession grants for young workers

Public authorities encourage homeownership and assisted real estate loans are offered to young workers.

The enhanced zero rate loan

This is the best known and most important device. Entirely modeled in January 2011, the enhanced zero rate loan for first-time buyers is a boon for all young workers.

The social loan

This is not the most important help, but it is a home loan that allows young workers to qualify for personalized housing assistance (APL) based on their income levels.

Other helpers

Think about the housing savings loan, especially if it comes from a CEL or the employer loan if you work in a company with more than 10 employees.

Obstacles to overcome

In general, the young asset seeks to buy his apartment without personal contribution. To do this, you have to convince the bank that even if you do not have capital, your file is good. This will require that all elements of your loan application are favorable, including the debt ratio and bank statements.

In addition to this, there is sometimes a professional situation that is sometimes unstable.

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