When you take out a mortgage, in addition to the monthly payments, you must also cover a number of other mortgage-related expenses that can add up to several thousand euros. Many of these costs have been ruled unfair by the courts, and since 2015, banks have been required to refund these mortgage expenses in many cases.
In this article, you’ll find a comprehensive, up-to-date guide explaining which mortgage expenses you can claim, how to do so step by step, the legal deadlines, and a series of tips to help reduce these types of expenses on future mortgages you may take out.
Mortgage expenses refer to all costs associated with taking out, modifying, or paying off a loan secured by real estate, which may include appraisal fees, notary and property registry fees, administrative processing fees, certain bank fees, and related insurance policies, such as property damage insurance or life insurance.
According to Supreme Court case law, many of these expenses must be borne by the bank, not by the customer.
You might be interested in: fixed-rate, adjustable-rate, or hybrid mortgages.
Before 2015, banks typically required customers to pay these costs, but today, under Law 5/2019, it is the bank that must cover these costs.
If the bank has required you to hire a specific appraiser, you may be eligible for a refund of this fee.
You might be interested in: 2025 property assessment.
Some banks used to charge loan origination fees that are now considered excessive, as they amounted to as much as 2% of the total loan amount.
If you were required to purchase home insurance or life insurance through your bank, you may be able to get at least some of that money back.
These are fees charged for paying off a mortgage early or for transferring the mortgage to another bank.
To be eligible for reimbursement of mortgage expenses, the following requirements must be met:
This is the date on which the law governing this type of expense changed; therefore, the new regulations were already applied to mortgages issued after that date.
The customer must have paid for expenses such as notary fees, registration fees, or the required appraisal.
In order to demand payment of these amounts, you must have supporting documentation, such as invoices or contract clauses, as well as property documents, such as the deed.
You are only eligible if no more than 15 years have passed since the property was paid off.
Under current Spanish regulations, the bank is responsible for covering expenses such as notary fees and Land Registry fees (which are governed by Law 5/2019), as well as the costs associated with the real estate agency and administrative procedures.
On the other hand, the client is responsible for any costs incurred due to the Stamp Duty (AJD), although this varies by autonomous community, as well as for any optional, non-mandatory insurance.
Approximate costs can be estimated within the following ranges.
Notary fees typically range from 600 to 1,200 euros. Land registry fees usually range from 200 to 500 euros. The origination fee ranges from 1% to 2% of the total loan amount. Administrative fees range from €200 to €500, and damage insurance for a one-year period ranges from €150 to €400.
For example, for a mortgage of 200,000 euros, the fees could amount to as much as 5,000 euros if the bank does not cover them.
You should look for clauses regarding the notary, the registries, or the required insurance policies that were taken out.
You must submit your complaint in a formal letter, including all supporting evidence. You can find a sample letter on the bank’s Customer Ombudsman page.
You can take legal action against the bank with the help of a lawyer who specializes in this type of claim against financial institutions.
Some banks may offer out-of-court settlements to avoid legal proceedings. If you agree to the terms they offer, you can choose to accept them.
If the bank refuses to reimburse the costs, you can file a complaint with the CMNV (National Securities Market Commission).
The statute of limitations for filing these claims can be up to 15 years, as provided by the Civil Code. Therefore, if your mortgage was taken out before 2013, the statute of limitations may be about to expire.
You shouldn't accept the first mortgage you're offered; instead, you should consider the various options from different banks and choose the one with the most favorable terms.
Since 2019, the bank has been required to cover these expenses.
To save on this expense, you can negotiate with your bank, as some banks will waive the origination fee for customers who have their paychecks deposited directly.
You can choose the appraiser and notary who offer you the best rates or whom you trust the most; the bank cannot require you to use one of its own.
Please keep in mind that the insurance policies offered to you are not mandatory, except for property damage insurance (not life insurance), so you are not required to accept them or cover that expense.
Mortgage-related expenses include notary fees, registration fees, and appraisal costs, and these are expenses that the bank is responsible for paying. On the other hand, purchase-related expenses may include property transfer tax (ITP/AJD) or capital gains tax, and these are the buyer’s responsibility.
Yes, provided that the bank has charged you for expenses that are their responsibility, such as notary fees, registration fees, or insurance premiums that were presented as mandatory (excluding damage insurance). In this case, you have the right to request a refund of these expenses.
Mortgage costs can range from around 2,000 to 6,000 euros; the exact amount will depend on the loan and its value.
Yes, you can choose your own notary. The bank may recommend options, but it cannot require you to use a specific notary; that decision is up to you.
This amount varies by bank, but some banks cover the costs of subrogation.
No, you only need home insurance.
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Mortgage expenses can add up to a significant amount, but many of these costs are refundable if the bank did not cover them. If you signed your mortgage before 2019, you can check whether you paid costs that you weren’t supposed to and file a claim for them. If you need help, you can consult a lawyer who specializes in this process.
Funded:
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Objective:
1.542.350,00 €
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