So what is a mortgage? A mortgage is a contract in which you give the bank the right to sell your property at public auction if you fail to pay back your loan. The proceeds from the sale will be used to reimburse the bank for the loan. You become owner of the property once it’s purchased, but you give this power to the bank in the event the loan is not reimbursed. To consent to the mortgage, you must either sign a specific document at your notaire’s office or give your approval to special provisions added to the deed of purchase for your property. The notaire will then file a copy with the mortgage registry. You are responsible for any related costs. But there are several types of mortgage guarantees and some are taxed at a lower rate than others. It all depends on the legal circumstances and the nature of the loan. In some cases, you give the bank a conventional mortgage with a tax rate of 0.615% on the loan amount. You’ll also pay some additional charges: stamp tax, mortgage registry fees, the notaire’s compensation, VAT and other expenditures. In other cases, you give the bank a lender’s lien, which is tax-exempt and therefore more economical but has no drawbacks for you or the bank. Finally, you should note that subsidised loans and interest-free loans are less expensive. Always verify that your bank is offering the mortgage plan that is least costly to you before accepting your loan. And don’t hesitate to consult your notaire, who specialises in these matters. He or she can offer the best solution based on the legal aspects of the purchase and loan, and can contact your bank if necessary. When you’re better informed, you’ll avoid unpleasant surprises and needless expense. Armed with your notaire’s advice, you’ll pay the right price.