Once you have chosen to consolidate loans, there are many different costs that you must take into account. A consolidated loan process does not only consist of the amount you get and later pay back again. There are many expenses associated with it, for example, there are interest and founding costs.
If you want to get an overall overview of the costs associated with a particular loan, it is a good idea to look at the APR – an abbreviation for the Annual Cost Percentage – which includes all the costs you have to pay back.
The various types of formation costs
There are several types of founding costs. These are one-off costs that you only pay in connection with the foundation and not on an ongoing basis during the loan process. Here is a list of some of the various costs that may be involved in setting up a loan.
The creation fee is an amount you pay as a fee to be allowed to create the loan. As mentioned, it is an amount you pay once, but can vary from provider to provider.
In the overview on the front page , you can see it varies from 495 to 950 kroner, depending on who you choose.
The foundation commission is paid to the lender. It is not a fixed amount but a fixed percentage of the borrowed amount paid when it is created. The foundation commission may vary from provider to provider, but in most cases the percentage is around 2%. At the same time, the cost has a ceiling of around DKK 10,000 regardless of the size of the loan.
In connection with the establishment of a mortgage loan, there are several different securities that must change hands between, for example, different banks. These institutions mostly require a low percentage of the loan amount to process these securities. It is mostly a small percentage, which is typically only about 0.5% of the amount borrowed.
Brokerage is a cost that comes with the actual creation, but is known primarily from mortgage loans or if you trade in shares and bonds.
Land Registration fee
In addition, it is often fees that are called land registration fees . There are both land registration fees to the state and to the lender. There is a difference between the two fees. Generally, fees are paid as a result of processing various documents.
The state will charge a fixed amount for each document to be registered. The amount is DKK 1,660 per. document. The registration fee for the company is as a result of the bank, which often takes an amount to register the various loan papers. This amount can, unlike the fee to the state, vary, often between 1,000 and 3,000 kr.