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How to include the notary fees in a mortgage?

As soon as you buy real estate, you have to pay what are commonly called “notary fees”. They represent between 3 and 10% of the amount of your property and are payable in addition to it.

These notarial fees are borne by the purchaser and impact the overall amount of your acquisition. It is therefore necessary to make your arrangements upstream to be able to pay them, or include them in your mortgage.

We take a look at the solutions available to you to resolve them and become an owner.

Option number 1: finance your notary fees with your personal contribution

When you take out a mortgage, the bank appreciates that you pay a contribution to finance your project. Don’t panic, there are several solutions …

With your available savings or family help

Very often, your personal contribution is enough to cover the notary fees. You can even negotiate with the bank not to bring 10% of the total amount of the transaction, but only the amount of the notary fees.

This practice is often accepted and shows your banker that you have made an effort and are not taking your project lightly. With an intake, you have more weight.

However, nothing prevents you from soliciting your loved ones. For a first acquisition, it is common for the family, often your parents, to help you build up your contribution, either through a donation or through a personal loan.

The advantage of the personal contribution, in addition to making it easier to obtain your mortgage, is to limit the amount of your payments, their duration, as well as the interest payable to the bank.

With an “assisted” loan

In the absence of a contribution or family donation, there are other solutions for the payment of notary fees. They are often neglected, even though they constitute a low cost alternative of choice:

  • The subsidized or approved loan: it is regulated and granted by the State, subject to income. In practice, this is most often the PTZ (zero rate loan)
  • The employer loan: also called 1% housing, it is subsidized by contributions from your company and allows you to obtain a “mini” loan at a preferential rate

Whatever solution is chosen, namely PTZ, PAS (Social Action Loan), PEL (Housing Savings Loan), PAL (Housing Action Loan) or even 1% employer loan, all allow you to set up a bring.

Indeed, although they are bank loans, they can replace, in the eyes of your banking establishment, your personal contribution. These are loans that can be perfectly combined with your main loan, which strengthen your file.

If you absolutely cannot offer a personal contribution, through savings, family donation or an assisted / approved loan, the rest of this article is for you …

Option number 2: finance your notary fees with a classic bank loan

In the absence of personal contribution, you will have to show your banker white paws with a solid explanation for this lack of contribution. The best advice to give you in this specific case is to justify this lack of contribution by a “responsible reason”:

  • It could be because you just bought a cash car
  • Or because you find it more profitable not to break your life insurance
  • Or because you have another form of guarantee to offer: joint surety, future inheritance, etc.

There is no “official list” of valid reasons. It is especially important to remember that your financial interlocutor must understand the following thing: he has in front of him someone who has a good management of his budget and who shows financial maturity.

Profile of the borrower without contribution

Do you not have enough savings to make up your contribution? You do not receive family help, or loan assistance to compensate for this lack? It does not matter in 2020, because many credit institutions will accept your loan.

Indeed, the interest rate on real estate bank loans is historically low. Consequently, financing the notary’s fees yourself is not always the most appropriate solution.

Instead of your personal contribution, here are some avenues to explore that could appeal to your banker so that your mortgage includes notary fees:

  • You are a first-time buyer and in a relationship with a stable situation: there are therefore two young people, in employment, to guarantee the loan taken out
  • You present absolutely flawless accounts: your history over the last twelve months shows no major dysfunction
  • You have no current consumer loan: you support yourself without borrowing, but want to become a homeowner for the price of rent
  • Your debt ratio does not exceed 33%: you have more than enough left to live to cover running costs of all kinds (shopping, energy, transport, telephony and internet, leisure, etc.)

Conclusion : although the personal contribution finances the notary fees, it is now possible to access the mortgage more easily. In this particular context, we can only recommend that you perform an online simulation even before signing a compromise for your future property.

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