New terms mortgage who must assume the expenses of stamp tax (AJD)?
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The past 6 November, the Supreme Court made the decision on who should bear the costs of taxing Documented Legal Acts (AJD), If the customer or the Bank. Many of our clients have come to consult us about the situation of uncertainty about their mortgages, because this measure has left many banks in a situation of compromised adaptation and the new law is slowly taking effect.
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So, it has now been ruled that banks are the ones that must meet the payment of the tax of Documented Legal Acts (AJD) and not the customer, as I've been doing before.
This tax was the main cost of setting up a mortgage, coming between the 60% y 70% of the total deed costs of the property and depending on the autonomous community, could oscillate between 0,5% and the 1,5%.
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How can this change in the mortgage constitution affect me?
Since banks will have to adjust to the payment of this tax, will have to pass on this spending through a possible rise in mortgages for new customers. The first possible measure taken by banks may be the increase in opening commission. However, due to high competition from banks to attract new customers, this measure would not be very effective, as they would lose market share and their supply would cease to be competitive.
Another option that they can take into account is an increase in linkage requirements. Linkages are those obligations that banks propose to contract additional products, as safe, pension plans or other financial products que “abaratan” mortgage fee. Even though, are not mandatory as such, your engagement can give the customer a significant advantage in the monthly mortgage credit payment. These links could also be regulated to prevent a higher rise and possible consumer abuse, so we recommend consulting with a good Financial Advisor.
What expenses do I have to pay to buy a home?
After the last mortgage reform, the expenses that a person must bear in the purchase of a home are as follows:
Cost of buying property sales:
Buy-to-sell writing: It is the deed that grants the property of the house.
Notary: He is the person in charge of regulating the purchase and sale according to the legality.
I.T.P. : It is the tax on economic transfers that taxes the purchase and sale of a good.
Registration: It is the activity of registering the home in the name of the new owner in the Land Registry.
Agency: She is in charge of the paperwork necessary for the buy-sell transaction.
Real estate commission: They can act as a management without buying the property through a legal intermediary.
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Mortgage bank expenses:
Mortgage Writing: It's the constitution of the mortgage contract we signed with the bank.
Notary: Regulates for legal purposes the constitution of such mortgage.
Registration: The mortgage must be registered and linked to the good that has been transferred.
Agency: In the event that the documentation process attached to the house is to be used, we must have a manager.
Opening fee: It is the commission that the bank charges us for setting up the mortgage and may vary depending on the bank.
Pricing: A bank appraiser must go to the property and make a valuation by which the bank estimates the amount it can lend us on the mortgage. It is usually from the 80% the value of the property, but it may vary depending on the conditions.
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You can check HERE el Royal Decree-Law 17/2018, de 8 November, amending the consolidated Text of the Property Transfer Tax And Documented Legal Acts Act, approved by the Royal Legislative Decree 1/1993, de 24 September.
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Do you have any other questions? You can consult us without obligation in any of our oficinas. We have financial department to solve all your doubts.
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Drafting:
Sheila Gandulla
Communication and creativity
Planetacasa Marketing Department
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