If purchasing costs are payable by the purchaser, additional costs apply. In other words, when buying an existing home, you pay more than the asking price alone. As a buyer, you need to take into account transfer tax, the costs for taking out a mortgage and the transfer deed. Thinking of buying a house? You should read on and learn everything about the costs payable by the purchaser. If you are opting for a newly-built house, this information is not relevant to you. In the case of a newly-built house, no additional costs are payable by the purchaser.
What does purchasing costs payable by the purchaser entail?
It basically means that any additional costs involved in the purchase of your home are payable by the purchaser. If we zoom in on this, we can divide these costs into legal and other costs. The legal costs cannot be avoided. In most cases, other costs will have to be taken into account as well. The overview below outlines the legal costs and the most common other costs.
- Transfer tax: if you buy an existing home, you pay 2% transfer tax.
- Notarial fees: the civil-law notary always prepares two deeds. The deed of transfer and the mortgage deed. The deed of transfer is the proof of ownership. The mortgage deed is the agreement between the homeowner and the lender.
- Land registry fees: The Land Registry Office charges a fee for registering or changing the owner and mortgage right in the register. These costs are normally not paid to the Land Registry Office but are charged by the civil-law notary.
- Structural survey: it is important to have the structural condition of the house assessed objectively.
- Valuation costs: with most mortgage lenders, you are obliged to submit a valuation report.
- Handling fee: want advice from a financial consultant who assesses which mortgage suits you best? If so, you’ll have to pay this consultant for his services.
- Bank guarantee: it is customary for the buyer to pay a deposit of 10% of the purchase price. If you do not have this money available, you can ask the bank to provide the deposit.
- National Mortgage Guarantee: does your purchase comply with the national mortgage guarantee rule? If so, you’ll pay 1% of the purchase price for inclusion in this guarantee scheme.
What percentage is the purchasing costs payable by the purchaser?
Of course, you want to know how much the purchasing costs payable by the purchaser are exactly. This is only logical because you want to know whether the purchase is affordable. On average, the additional costs amount to 5 to 6 percent. If you want to know the exact amount, you’ll need to assess your personal situation. The first step you will have to take is to request these costs!
Calculating purchasing costs payable by the purchaser
In order to provide you with some insight, we’ve prepared a sample calculation below. You want to buy a house of € 200,000. In this situation, you won’t be engaging a financial consultant and your purchase is not included in the NMG scheme. However, you are obliged to have a valuation report drawn up for the mortgage lender. In that case, the additional costs are as follows:
- 2% transfer tax, i.e € 4,000
- Notarial fees € 900
- Valuation report € 400
- Structural survey € 200
The total costs amount to € 5,500 or 2.75%
In 2018, can you include the purchasing costs payable by the purchaser in the overall financing package?
In 2017, you could still borrow a maximum of 101% of the purchase price. As from 1 January 2018, it is no longer possible to include the additional costs in the financing package. You can borrow a maximum of 100% of the purchase price and thus you are required to invest some money of your own.