When signing a mortgage loan offer, the bank requires a guarantee. If it opts for a mortgage rather than a guarantee organization, the bill falls on the borrower, and it often exceeds what was initially planned. Understanding who pays what in these mortgage fees helps avoid unpleasant surprises on the day of signing at the notary’s office.
Total cost of a mortgage in 2025: beyond just notary fees
Mortgage fees are often reduced to the “notary” line in the financing plan. The reality is more burdensome. According to Praxi Finance, one should expect around 8 to 8.5% of the borrowed amount in operational fees (bank, notary, appraisal, intermediation) on a mortgage loan in 2026, excluding loan interest.
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This percentage has significantly increased compared to the 2017-2021 period, due to the combined effects of rising rates and higher ancillary fees. A borrower who only compares interest rates between two offers misses a significant part of the actual cost of their loan.
To obtain explanations about mortgage fees tailored to your situation, it is better to request a detailed breakdown from the notary before signing, rather than relying on online estimates.
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Mortgage fees: the distribution between borrower and bank
On the ground, the question always arises: who pays what in this mortgage guarantee? The answer is clear: the borrower bears all registration fees. The bank does not spend anything to protect itself, even though it benefits from the guarantee on the property.
These fees break down into several concrete items:
- The notary’s fees, calculated according to a regulated scale proportional to the loan amount. They are not negotiable.
- The property publicity tax, paid to the public treasury to register the mortgage in the property file. It represents the largest part of the bill.
- The disbursements, meaning the costs advanced by the notary (land registry extracts, stamps, mortgage statements). They vary from one notary office to another.
- The real estate security contribution, set by the state, due upon registration.
None of these items are the responsibility of the bank or the seller. When purchasing real estate, the seller pays their own costs related to the sale, but the loan guarantee remains entirely on the shoulders of the buyer-borrower.
Mortgage or bank guarantee: what the choice changes on the bill
French banks are increasingly directing borrowers towards guarantee organizations rather than mortgages. This is not by chance: the guarantee simplifies the bank’s internal procedures and reduces its setup times.
For the borrower, the guarantee generally costs less upfront. Guarantee fees are around a few tenths of a percent of the borrowed capital, plus fixed fees. The most concrete advantage appears at the end: with a guarantee, there are no release fees if the loan is repaid normally.
With a mortgage, the release incurs additional fees if the property is sold before the end of the loan. This involves a separate notarial act, with its own fees and tax. This release cost is often overlooked in initial simulations.
The guarantee is not accessible to all profiles. Atypical projects (complex assets, seniors with rental income, life annuities, buyout of shares between co-borrowers) often face refusals from the guarantee organization. The mortgage then remains the only possible guarantee.
Mortgage release during a sale: the calendar trap
You sell your property after seven years of repayment. The loan is not settled. The bank requires the release of the mortgage so that the notary can transfer ownership free of any registration.
This release requires an authentic act before a notary, with fees that add to those of the sale. The seller pays the release, not the buyer. This is a point that many homeowners discover late.
There is an alternative: wait. The mortgage registration automatically extinguishes one year after the last loan payment (initial end date of the loan, not the early repayment date). If one can wait for this natural extinction, they save on release fees. Feedback varies on this point depending on the notary offices, as some still require a formal cancellation to secure the transaction.
Preparing your guarantee budget before signing the loan
Rather than discovering the amount of mortgage fees in the draft deed, one can anticipate them. The process is simple but rarely followed.
- Request a detailed provisional breakdown from the notary as soon as the loan offer is received, distinguishing fees, taxes, disbursements, and real estate security contributions.
- Compare with the cost of a bank guarantee: contact the guarantee organization proposed by the bank and request a written quote.
- Include potential release fees if a resale is considered before the loan term.
The choice between mortgage and guarantee is made before signing the loan offer, not after. Once the offer is accepted, the guarantee is fixed. Negotiating this point with the bank at the time of assembling the file remains the only real lever.
The “guarantee” item of the mortgage weighs several thousand euros on a standard project. Ignoring it amounts to underestimating one’s acquisition budget, which can jeopardize the financing plan or reduce the negotiation margin on the property’s price.