Are you ready to take out a mortgage? We analyze all costs

HomeBlogAre you ready to take out a mortgage? We analyze all costs

Surely each of us dreams of our own new home, be it an apartment, a mansion or a townhouse. For these purposes, the CasaHub platform provides very optimal and convenient mortgage financing solutions.

But to ensure you are informed and prepared for this step, we will cover all aspects of a mortgage in the article below.

Advantages of a mortgage over renting

It's no secret that a mortgage places certain financial obligations on the shoulders of new owners, but at the same time, renting does the same. In the context of a strong increase in rental prices, the difference between monthly payments has become less significant.

In the case of rent, the monthly amount represents payment for the rental service of the property, while in the case of a mortgage, it is a long-term investment. In the future, the price of any real estate increases and, being repaid from payments, it can be sold at a higher price.

There are a number of other advantages of mortgage financing:

Special offers for mortgage financing - 0.52% discount on mortgages, lending options in currency or lei and many others (details HERE);
Selection and planning of payments. This allows you to distribute and effectively manage income - a fact that leads to financial discipline;
Floating rate, which may decrease depending on the economic situation in the country. In the case of rent, the amount of payments only increases.
Investments in real estate provide a hedge against inflation, especially in the current period;
Independence - from the first day after purchasing a property with a mortgage, the new owner has the right to equip it to his own taste, replace furniture, appliances, and the entire design;
If the property was purchased for rental, it will buy itself out in a few years;
A large number of agents and offers on the market anywhere in the city and with any layout.

Financial responsibility

As we wrote above, any mortgage financing places financial obligations on the shoulders of the new owner. In addition to monthly payments, he must pay utility bills, local taxes, etc. Moreover, individual arrangement of space, solution to all problems with water, electricity, heating, etc. are paid exclusively by him.

Additional costs when purchasing real estate

Undoubtedly, in addition to repaying the loan amount, there are other costs that those who want to use this service should be aware of. Below we will describe most of them point by point:

Paperwork

(it is important to note that all costs are borne bybuyer)

single tax on the purchase of real estate - determined depending on the value of the object, on average 0.5% of the value of the object;
notary services - determined depending on the value of the object and the number of documents that need to be drawn up and certified: purchase and sale contract, documents for loan financing, powers of attorney, etc., on average reach from 0.5% to 0.7% of the cost real estate;
cadastral service services – from 1500 to 5000 lei;
insurance of a property – from 1000 lei/year.

In total, approximately – from 20,000 lei.

Priority transactions in a new property

Changing locks is an extremely important operation to secure your property. Especially if more real estate agents were involved in the sale - from 500 levs per castle;
starting the boiler - this first start-up operation must be carried out by specialists who must check the functionality of the system and the absence of leaks - from 1000 lei;
installation and connection of an intercom – from 500 levs;
installation and connection of the Internet / television - when signing a contract, this service is often free;
installation of mosquito nets on windows – from 400 lei per window;
purchasing the necessary furniture and equipment - prices vary depending on models, sizes, etc.
purchasing sanitary accessories, kitchen and room accessories, etc. – prices also vary.

Total, approximately – from 15,000 lei

Conclusion

At the moment, mortgage lending is an excellent solution due to very favorable conditions. By the way, you can view them here: Financing terms. But at the same time, it is necessary to take into account the obligatory additional costs.

Based on the above, a logical solution may be to request a larger amount. It is important to note that according to the procedure, first you will complete all the documents, pay all taxes and duties, and only after that the bank will be able to give you the required amount, so you must be financially prepared from the very beginning.