Mortgage administration costs are the payments for the deeds and processing the tax settlement when we buy a property and sign, subrogate, cancel or refinance a mortgage. Unlike notary and property registry costs, administrative expenses are not stipulated by law, so each agency sets its own fees. They usually charge between €150 and €300, but this depends on the area and the company involved. These costs include administration, such as collecting copies from the notary's office, settlement of taxes and filing the deed with the property registry.
As already mentioned, most of the costs of arranging a mortgage fell on the customer before the Mortgage Act was introduced. However, costs have been distributed more fairly since it came into effect in June 2019. Now the credit institution pays these costs along with the registration expenses (the costs of registering the mortgage loan with the Property Registry), the notary costs (the fees charged by this public officer, which are therefore regulated - notary fees are usually 0.3% to 0.5% of the mortgage) and stamp duty (Impuesto de Actos Jurídicos Documentados - IAJD), which is between 0.5% and 1.5% of the price of the property.
The Mortgage Act specifies that the consumer pays the appraisal costs (i.e. the expert estimate of the sale price of the property, which directly affects the mortgage) and for their copy of the deed.
The Mortgage Act is not retroactive. Therefore, it only applies to mortgages arranged after 16 June 2019.