Home Buyers Guide

Chapter 5: Mortgage Basics

Mortgage Fees & Costs

• Broker Fees: Varies but some brokers do not charge fees

• Mortgage Valuation Fee. Cost: approx. €150.

This is standard will all the lenders & is required on all new and second hand homes.

• Final Mortgage Valuation Fee. Cost €65 - €70 (new homes only)

This is standard will all the lenders. If you buy off plan, the lenders will require a ‘final valuation’ when the property is finished.

• Indemnity Bond Fee. Cost: Usually €0 (usually only charged to investors)

This is an upfront one-off fee charged by some lenders if you borrow in excess of 70-80% of the house value, to protect them against you defaulting on the loan. For first time buyers, most lenders will not absorb the cost of the bond, and pay it themselves but some lenders may pass this fee onto you. When charged, the fee can vary from hundreds to thousands of euros so make sure your lender doesn’t charge it.

• Arrangement or Acceptance Fee. Cost: Usually €0

These fees are not charged by the main stream lenders, but are charged on ‘specialist’ and ‘subprime’ mortgages
i.e. if you have a bad credit history etc. The fees charged are generally between 0.5% to 1% of the mortgage amount.

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