Consolidation of real estate loans and / or conso creates different fees depending on the total amount to be bought back and the nature of the transaction. Among them, notary fees must be taken into account.
Consolidation of credits can be useful to lower the amount of its monthly payments and better manage its budget or to finance a new project. In all cases, this operation has a cost and induces the payment of early redemption fees, guarantee and insurance fees, application fees and notary fees. How much are the notary fees for a credit redemption? Explanations.
Are the notary fees mandatory in case of pooling of credits?
In France, the notary is the only one who can register a mortgage guarantee on real estate (except in the case of a legal mortgage). This important act requires the presence of a notary whose role is to advise the borrower and draw his attention to the scope of his engagement. However, the services offered by this professional are not free. The fees of the notary vary according to the amount of the new credit to be refunded and the number of credits in repayment in particular.
Thus, the solicitor is solicited only for groupings of loans with a mortgage guarantee. Note that it is also possible to use its services for all types of credit redemption.
Estimate the amount of notary fees
In order to estimate the notary fees that will have to be paid in case of consolidation of immo and conso credits, several elements must be taken into account:
- Remuneration of the notary (composed of a fixed part and a variable part): only this part goes directly to the notary and his collaborators;
- Disbursements : whatever the nature of the service provided, this professional advances on behalf of his client various expenses (travel, third parties) that must be reimbursed;
- Taxes paid to the public treasury : the notary levies taxes imposed by the state and the local authorities to return them to the public treasury.
If the credit consolidation transaction is secured by a mortgage, notary fees will be applied for the release. They correspond on average to 2% of the outstanding amount and are included in the overall cost of the operation.
How to reduce notary fees?
It is possible to negotiate the fees of the notary. However, it is relatively rare for this professional to reduce his remuneration.
Other costs related to loan consolidation are more easily negotiable like borrower insurance. In fact, when a credit is redeemed, the bank systematically offers group insurance. However, it is possible to achieve significant savings by playing the delegation of insurance. This consists in choosing an individual loan insurance offering an equivalent level of guarantee. Similarly, the fees and the rate can be negotiated.