During a signing at the notary’s office, the line “mortgage fees” on the statement often provokes the same reaction: why this amount, and especially, who pays it? On paper, the answer seems simple. In practice, the distribution of these fees depends on the type of guarantee, the negotiating power with the bank, and when the question is asked during the file setup.
Negotiate the coverage of mortgage fees with your bank
We have observed since the rise in rates in 2022-2023: several brokers, including Vousfinancer and Artémis Courtage, report that banks are more often willing to cover part of the guarantee fees. This commercial gesture is not automatic. It is part of a broader negotiation that includes the loan rate, borrower insurance, and income domiciliation.
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In practical terms, the bank does not reimburse mortgage fees afterward. It offers a “package” where the cost of the guarantee is absorbed into the conditions of the mortgage, either through a slightly adjusted rate or a discount on the processing fees. Before signing an offer, it is advisable to ask the question directly: “Do you cover all or part of the guarantee fees?”
To understand mortgage fees on a mortgage loan, it is important to keep in mind that these fees are always included in the APR. The Bank of France and the DGCCRF remind us that any fees conditioning the granting of the loan are included in this calculation, which prevents the bank from hiding who actually bears the expense.
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Mortgage fees: what the borrower actually pays at signing
On the day of signing the deed at the notary’s office, it is the borrower who pays the bill. Not the bank, not the seller. The amount is deducted from the funds released by the lending institution, even before the rest of the price is paid to the seller.
Mortgage fees encompass several distinct items:
- The notary’s fees, calculated according to a regulated scale and proportional to the amount of the guaranteed mortgage loan.
- The property publicity tax, paid to the property publicity service for the registration of the mortgage in the real estate file.
- The real estate security contribution, which compensates the state for the registration of the guarantee.
- The disbursements, which cover the expenses incurred by the notary (copies of the deed, land registry extracts, etc.).
The borrower is the only legal debtor of these fees. The notary cannot charge them to the bank or the seller, unless there is an express contrary agreement, which remains very rare.
Conventional mortgage or special legal mortgage of the lender of funds
Since January 1, 2022, the special legal mortgage of the lender of funds (HLSPD) has replaced the former privilege of the lender of funds (PPD). The major difference lies in the property publicity tax: the HLSPD is exempt from it on old properties, which significantly reduces the cost for the borrower compared to a conventional mortgage.
The conventional mortgage, on the other hand, applies to all types of properties (new, old, land). It is more expensive because it includes the property publicity tax. One does not always choose: it is the nature of the property and the financing that determines which the bank will require.
Release of mortgage: additional fees often forgotten
The loan is repaid, the property is sold before the end of the loan, or the loan is refinanced with a competitor. In each of these cases, it is necessary to lift the mortgage. This operation is called the release, and it generates a second visit to the notary with new fees.
The release fees are the responsibility of the borrower, even when it is a loan buyback that triggers it. This item is often underestimated when comparing two mortgage offers. If the property is sold in the early years, the cumulative registration and release fees can represent a significant additional cost.
Key point to remember: if the loan reaches its term without resale or refinancing, the mortgage registration disappears by itself one year after the last due date. No release is then necessary, and these fees are saved.
Mortgage or bank guarantee: compare the real cost for the borrower
The question “who pays” does not have the same meaning depending on the chosen guarantee. With a bank guarantee (such as Crédit Logement), the borrower pays a commission and a mutual guarantee fund. Part of the mutual fund is refunded upon repayment of the loan, which reduces the net cost compared to a mortgage where nothing is recoverable.
With the mortgage, all fees are definitively acquired. Notary fees, property publicity tax, real estate security contribution: none of these amounts are returned to the borrower, even if the loan is repaid early.
Returns vary on this point according to institutions, but generally speaking, the guarantee remains less costly for the borrower when the property is resold before the end of the loan. The mortgage is justified when the bank requires it (atypical profiles, specific properties) or when no guarantee organization accepts the file.
Tax deductibility of mortgage fees
For a typical residential purchase, mortgage fees are not deductible from income. The French tax regime reserves the deduction of these fees for investors declaring rental income. A borrower purchasing their primary residence thus absorbs the cost entirely, without tax compensation.
Before validating the type of guarantee with their bank, it is beneficial to request a written comparison between mortgage and guarantee. The notary can provide a simulation of the registration fees, and the bank must include all these fees in the APR communicated. This is the only reliable indicator for comparing two mortgage offers on an equal footing.