Be aware of additional costs when getting a mortgage

It is imperative that all costs associated when getting a mortgage are taken into account.  In addition with handing over a deposit which is at least 8% of the house price, home buyers can expect to incur other unavoidable expenses. Alongside a ‘moving in’ budget, allowing for the cost of hiring a removal service company, buying new furnishings and utensils, decorations and other similar expenses, homebuyers should also factor in the following:

Professional Fees

A solicitor will be required to ensure that the legality aspect of the property purchase is in order. When it comes to getting a good deal on your legal fees, it can pay to shop around as fees charged can vary amongst solicitors. However, it is recommended to put aside the equivalent of 1% of the purchase price in order to sufficiently budget for this specific cost.

There are also additional fees relating to Valuation and Surveyor’s reports. A professional valuation report is carried out to verify the accuracy of the asking price and should be added to your expenditure list. What should also be considered is the price of a surveyor’s report. This is a detailed report on the condition and state of repair of all aspects of the property including estimated costs of repair of any deficiencies found.

Stamp Duty

Whenever a transfer of property ownership takes place in Ireland, the purchaser is liable to pay stamp duty, a Government tax on the purchase of both residential and commercial buildings. The rate of stamp duty paid is 1% on the first €1,000,000 on the building’s value and 2% on the balance after the first €1 million. This must be paid irrespective if you are a first time buyer or have previously bought a home.

Land Registry

Registering the deeds of a property with either the Land Registry or Registry of Deeds incurs a fee of €50.

House & Contents Insurance

House & Contents Insurance protects you against loss in the event of unforeseen events such as a fire or other structural damage and the premium quotes will depend largely on the building and contents sums insured. Our Insurance partners, SimplyInsure.ie, can secure you great cover from only as little as €142. Click here for a quick quote.

Mortgage Protection / Life Insurance

Mortgage Protection and Life Insurance provide cover against the possibility that mortgage payments cannot be maintained in the event of serious illness or death. Again, the cost of this will vary per person. Factors that will influence it include the size of the mortgage, age and health. Again, our mortgage advisors are also experts in Life Insurance and will do the hard work of getting you the right cover at the lowest premiums on the Irish market of over 10 insurers.

Estate Agents / Auctioneering Fees

This is of particular interest to those who are trading up by selling off their current property to fund the purchase of the new home. An estate agent can typically charge up to 1.5% of the selling price to arrange sale on your behalf.

Armed with this knowledge about the various costs you will encounter when applying for a mortgage, it will allow you to make an informed choice so you won’t receive any unsurprising charges.