You have just signed a mortgage loan with a Gandalf partner bank. You want to find out about the bank fees, what do they correspond to? How much will you pay per month? We detail everything you need to know about bank charges.
1. What will be the account maintenance fee in your new bank?
You must open a checking account for monthly payments
Have you ever heard of the counterparties banks demand when they offer you a home loan? You want to know what it is and especially if you have to accept them? We will explain everything to you.
It is important to know that the required rewards depend on the banks and your real estate project. Buying a principal residence or a rental investment? Employee in the private sector or company manager are all different cases. Banks will not demand the same counterparties in these different situations.
First, you need to open a checking account in the bank that makes you the home loan. Monthly loan payments will be deducted from this account. This is your current account. You can subscribe to additional services (credit card, checkbook and other services).
In addition, the bank will often require that your business income be paid into this account. This is called bank domiciliation. Banks are thus reassured about your ability to pay monthly payments.
The objective of the banks in proposing this transaction is also to make you loyal in the long term, beyond the duration of your mortgage. Indeed, a mortgage is often subscribed for a period of 15 to 25 years but on average repaid after 7 years.
Bank domiciliation, a compulsory counterpart?
Before January 1, 2018, banks had the opportunity to require you to domiciliate your income in the bank in exchange for a home loan. Since 1 January 2018, banks can always ask you to domicile your income but for a maximum period of 10 years and provided you offer an attractive rate in exchange.
If you want to make a rental investment, or you are a business owner, the bank in which you subscribe your loan will usually ask you to domicile the income related to the rental or your professional activity.
2. Bank charges, what are the banks’ obligations?
In recent years, bank charges are regulated by law. Banks are obligated to provide you with the price schedules at least two months before the effective change of fees. For this, banks have several communication channels:
- An endorsement : the bank sends you an amendment to the contract presenting the modifications of the services
- An extract of the tariff conditions : the document informs you about the main services offered by the bank
- Complete tariff conditions : the document informs the customer about all the services and their price
These documents can reach you by several means. Once a year, banks send it to you by mail. They are also available on your bank’s website.
In addition, banks present customers with bank charges at different times of the year:
- Sansa in the month of January
- Brann d’Epargne in the month of January
- Theon in the month of January
- Samwell in the month of April
- Cersei in the month of March
- H’ghar in the month of July
- Waldo Frey in the month of January
- Online banks update banking fees every 3 months
Regarding the tariffs in force, in recent years, the French State has put in place a number of laws to regulate bank charges. However, the laws only cover certain intervention taxes such as overdraft overruns. Regarding the intervention costs in case of overdraft, your bank may charge you € 8 per transaction in a limit of € 80 per month.
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If you are in a situation of over-indebtedness, the costs are reduced to 4 € per operation within a limit of 20 € per month.
3. Which bank offers the best banking fees?
In addition to the terms of mortgage, so you must be attentive to bank charges? Here is a non-exhaustive list of bank charges. However, it is important to keep in mind that they may differ depending on the type of contract signed and the services you use.
In 2016, our partner Bankin ‘conducted a study on the amount of bank fees paid by their users. They conducted the study on a sample of 300,000 people. In 2016, the French paid an average of € 229 in bank charges.