What costs must you pay when you take out a mortgage?


Taking out a mortgage loanAbre en ventana nueva entails a series of expensesAbre en ventana nueva (agency, notary and registry fees, taxes, valuation…) that must be shared between the customer and the bank. But... who must pay what?

Law 5/2019Abre en ventana nueva regulating real estate credit agreements lays down, among other mattersAbre en ventana nueva, how the costs involved in taking out a mortgage are to be shared out. Thus, all mortgage agreements signed since its entry into force state that customers must pay for the valuation of the property and the notary fees for obtaining a copy of the mortgage loan deed, if requested.

The bank will assume the agency fee, the notary fee for the mortgage deed, the registry fees and taxes.

The customer must also pay the arrangement fee, if it is included in the bank’s terms and conditions. This fee is paid only once and includes all the expenses that the bank may claim for studying, processing and granting the loan.

It is important to point out that the Law mentions only mortgage loan arrangement costs, not those of the purchase itself.

Before the entry into force of Law 5/2019, mortgage loan arrangement costs were shared out differently.

In this regard, the Supreme Court ruled on the need for the customer to be duly informed of the clause establishing these costs and for it to be included in the contract.

This table shows the distribution of mortgage expenses before and after the entry into force of the law.

Reparto de gastos hipotecarios
 Expense Agreements entered into before 16/06/2019, date of entry into force of Law 5/2019 (in accordance with the doctrine of the Supreme Court) Agreements entered into after 16/06/2019, date of entry into force of Law 5/2019
Valuation fees Bank Customer
Registry fees Bank Bank
Agency fees Bank Bank
Notary fees 50% each Bank
Stamp Duty Customer Bank (*)

(*) Stamp duty must be paid by the lender since before the entry into force of Law 5/2019 on 16 June 2019 (specifically, since the entry into force of Royal Decree-Law 17/2018 on 10 November 2018).

These charges have been the subject of complaints filed with the Banco de España. However, it should be noted that issues such as the analysis of whether contract clauses are abusive or not are a matter for the courts, not the Banco de España. Nor can the Banco de España apply the effects of court rulings on this issue to individual cases.

For more information, visit our section on mortgage-related expenses.Abre en ventana nueva

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