Home Buyers Guide

Chapter 6: Choosing the Right Mortgage

Step 5: Consider Mortgage Fees

The good news is that many of the fees that the banks traditionally charged no longer exist. Fees will vary from bank to bank, but here’s what to look out for:

• Valuation Fee

This is standard will all the lenders and it usually costs €130 - €150.
If you are buying a brand new home, which hasn’t been completed yet, the lenders will also require a ‘final valuation’ when the property is finished. This usually cost about €65 - €70.

• Indemnity Bond Fee

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. The fee can vary from hundreds to thousands of euros so make your lender doesn’t charge it.

• Arrangement or Acceptance Fee

These fees are not charged by the main stream lenders, but ‘specialist’ and ‘sub prime’ lenders do charge fees
generally between 0.5% to 1% of the mortgage amount.

• Broker Fee

Some mortgage brokers will charge you a fee to arrange your mortgage, but many brokers don’t. so shop around.

< Previous Page | Next Page > | Contents Page | Download the Full 127 Page Home Buyers Guide

Search the Home Buyers Guide using Google: