When purchasing real estate financed by a loan, the bank systematically requires a guarantee. When this guarantee takes the form of a mortgage, the associated costs represent a budget item that many buyers discover late in the process. The question of who pays the mortgage fees deserves a clear answer, as the legal rule leaves no room for ambiguity.
Mortgage or mutual guarantee: a choice that changes the bill
Since the end of 2023, banking institutions have increasingly favored mutual guarantees (Crédit Logement, SACCEF) over conventional mortgages. The guarantee is considered less expensive and more flexible for most standard cases.
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However, the mortgage remains mandatory in several specific cases: investor profiles, atypical files, purchases in VEFA over long durations, or when the guarantee organization rejects the file. The choice between these two guarantees does not always belong to the borrower, and it is often the bank that decides.
This distinction has a direct impact on the overall budget. With a guarantee, the borrower pays a fee that can be partially refunded at the end of the loan. With a mortgage, the incurred costs are permanently lost, and release fees are added in case of early resale. To better understand who pays the mortgage fees, it is first necessary to detail the items that make up this expense.
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Breakdown of mortgage fees: item by item
The mortgage fees include several distinct lines, each paid to a different recipient. The table below summarizes their nature and destination.
| Fee Item | Recipient | Nature |
|---|---|---|
| Notary fees | Notary | Regulated remuneration, proportional to the loan amount |
| Property advertising tax | Public treasury | Tax on the mortgage registration |
| Real estate security contribution | Property advertising service | Registration fees in the real estate file |
| Disbursements and formalities | Notary (advanced on behalf of third parties) | Variable administrative fees |
The notary fees are governed by a national decreasing scale. They are not negotiable. However, the disbursements may vary slightly from one notarial office to another.
Property advertising tax: new and old are not treated equally
The amount of the property advertising tax differs according to the nature of the property. For an old property, this tax applies fully. For a new property or in VEFA, the property advertising tax is reduced, which significantly decreases the total cost of the mortgage guarantee.
This tax difference between new and old can represent several hundred euros of difference in the final amount of mortgage fees. This is a factor to consider from the simulation of the financing plan.
Mortgage fees: the burden is legally on the borrower
All mortgage fees are the responsibility of the borrower, meaning the buyer who takes out the mortgage loan. This principle has no legal exceptions. The lending bank, although it is the direct beneficiary of the guarantee, does not bear any part of it.
The seller of the property is also not involved in this financing. The mortgage fees are completely separate from the notary fees related to the sale itself (transfer duties, fees for the sale deed).
Negotiate partial coverage with the bank
In practice, some borrowers obtain commercial coverage for part of the fees. This negotiation remains rare and mainly concerns cases of high stakes for the bank (large amounts, wealth clients, occasional promotional offers).
The coverage may take the form of a partial refund of the notary fees or a reduction in the loan processing fees as compensation. No legal obligation compels the bank to participate in mortgage fees.
Mortgage release fees: the extra cost in case of early resale
The mortgage remains registered for the entire duration of the loan, plus one year after its term. If the borrower sells the property before this deadline, they must request a release to cancel the registration. This procedure generates additional fees.
The release fees include:
- The notary fees for the release deed, calculated on the initial amount of the mortgage registration
- The real estate security contribution for the cancellation in the land registry
- The administrative disbursements related to the procedure
These release fees are fully borne by the borrower. Combined with the initial registration fees, they significantly increase the total cost of the mortgage guarantee.
Quick resale: the mortgage penalizes more than a guarantee
For a buyer considering resale in the early years, the combination of registration fees and release fees makes the mortgage significantly more expensive than a mutual guarantee. With a guarantee like Crédit Logement, the release does not exist, and part of the initial fee may be refunded.
This holding duration parameter should be included in any financing simulation, well before signing the loan. Borrowers planning a professional mobility project or a medium-term resale have every interest in negotiating a guarantee rather than a mortgage.
Simulate mortgage fees before signing the mortgage loan
The Service Public website provides an official simulator to estimate the cost of a mortgage based on the loan amount and the nature of the property. The results include notary fees, property advertising tax, and real estate security contribution.
Before any signature, three checks are necessary:
- Compare the total cost of the mortgage with that of a mutual guarantee over the same loan duration
- Include any potential release fees if a resale is possible before the loan term
- Check if the bank accepts a less expensive alternative guarantee for the concerned profile
The choice of guarantee affects the real cost of the mortgage loan, sometimes as much as the interest rate itself. Mortgage fees, often presented as a necessary step, are only so when the bank rules out other options. Asking about the guarantee from the first meeting with the bank advisor remains the most effective lever to reduce this line of expense.