We just signed a preliminary agreement for an apartment listed at 220,000 euros, and the bank announced a total budget close to 250,000 euros. The gap between the listed price and the actual cost of a real estate purchase surprises almost all buyers. Identifying each expense item before committing is the only way to calibrate a coherent budget and avoid a last-minute loan rejection.
Transfer taxes in 2026: the increase that changes the budget
Since the 2025 finance law, most departments have raised their share of transfer taxes. As a result: the transfer taxes on existing properties are around 6.3% of the price, compared to about 5.8% previously. For a property priced at 250,000 euros, this represents several thousand euros more than what one would have paid two years ago.
We often talk about “notary fees,” but the notary’s remuneration constitutes only a minor fraction of the total amount paid. The majority goes to taxes collected on behalf of the state and local authorities. For a detailed overview of these items, one can consult real estate fees on Capitaine Immo which breaks down each line.
For new properties, the mechanics are different. A developer subject to VAT sells at a gross price (including 20% VAT), which entitles one to a reduced property advertising tax of 0.715%. This tax combination brings acquisition costs between 2% and 3% for new properties, a massive gap compared to existing ones that few buyers anticipate correctly.
Actual cost of the mortgage: beyond the nominal rate
The rate displayed by the bank reflects only part of the cost of the loan. Three items systematically add up and weigh on the overall budget.
- Bank processing fees: charged at the granting of the loan, they vary from one institution to another and can sometimes be negotiated, especially when a solid file with a good debt ratio is provided.
- Loan guarantee (mortgage or surety): a mortgage incurs additional notary fees, while a surety organization requires a fee, part of which can be refunded at the end of the loan. The choice between the two alters the total cost by several hundred to a few thousand euros.
- Borrower insurance: often underestimated, it represents a significant part of the total cost of credit. Since the Lemoine law, one can change insurance at any time, allowing for a reduction in the bill after signing. Comparing offers even before the loan is unlocked remains the most profitable reflex.
To assess the true price of credit, one must look at the APR (annual percentage rate). It includes all these items and allows for the comparison of two banking offers on an identical basis.
Guarantee: mortgage or surety, a concrete choice
On a long-term loan, a mortgage is more expensive at the outset but does not require any recurring fees. The mutual surety (like Crédit Logement) is lighter at the start, and part of the amount paid is refundable upon full repayment of the loan. Returns on this point vary depending on the organizations and the amounts borrowed, but comparing the two options over the total duration of the loan helps avoid mistakes.
Real estate agency fees and negotiation fees
When going through an agency, the fees represent a percentage of the sale price. This percentage is freely set by the agency and must appear in the listing. It is often expressed as “buyer’s charge” or “seller’s charge,” which alters the calculation base for transfer taxes.
A concrete point: if the fees are borne by the seller, the transfer taxes are calculated on the total price (fees included). If the fees are borne by the buyer, the transfer taxes apply only to the net seller price. On a high-priced property, the distribution of agency fees can vary the transfer taxes by several hundred euros.
Property tax and condominium charges: recurring costs from the first year
The property tax is due by the owner on January 1st of the year. In practice, during a sale occurring within the year, the notary conducts a prorated calculation between the seller and the buyer. Therefore, one recovers part of the tax paid by the seller, but it is necessary to budget for the entire property tax for the following year.
For an apartment in a condominium, ongoing charges (maintenance of common areas, property management, collective heating) are added monthly or quarterly. Before signing, requesting the last three minutes of the general assembly allows one to spot voted or upcoming works. A façade renovation or roof repair voted before the sale remains the responsibility of the previous owner, unless otherwise stated in the preliminary agreement.
Post-acquisition works: the most unpredictable item
Electrical upgrades, boiler replacement, insulation, painting: these expenses do not appear in any official scale but can represent a significant part of the total budget. The state of technical diagnostics (DPE, asbestos, lead, electricity) provides a first indication. A property rated F or G in the energy performance diagnosis almost systematically implies energy renovation works in the short term, especially as regulations tighten on the rental of thermal sieves.
Planning a budget for works as soon as the financing plan is set, even if it is not used entirely, remains the best protection against budget overruns. Some banks accept incorporating this amount into the mortgage, which smooths the cost over time.
The listed price of a property is just a starting point. Between increased transfer taxes, the full cost of credit, agency fees, and recurring charges from the first year, the gap with the actual budget often exceeds 10% of the purchase price in existing properties. Laying out all these figures before making an offer is what separates a controlled purchase from a financially tense project.