Total transaction cost
The sum of all costs associated with a real-estate acquisition: net seller price, agency fees, notary fees, guarantee fees, bank arrangement fee, brokerage fee, works cost, and furniture. This is the broker's working base for building the financing plan and determining the required down payment. It must not be confused with the total cost of credit, which covers only loan interest and charges.
Key points
- It includes the seller price, agency fees, notary fees, and guarantee fees.
- Brokerage fees, bank arrangement fees, and works costs are added where applicable.
- It differs from the total cost of credit, which covers only loan interest and charges.
- It is the reference figure for calculating the down-payment-to-financing ratio.
Frequently asked questions
Why is it important to distinguish the total transaction cost from the total cost of credit?
The total transaction cost represents everything the buyer must spend in order to become an owner. The total cost of credit measures only what the loan costs beyond the borrowed capital (interest, insurance, guarantee). Confusing the two leads to underestimating the required down payment or overestimating the saving from a loan refinancing.
Which costs do buyers most commonly forget to include in the total transaction cost?
Guarantee fees (surety or mortgage), bank arrangement fees, brokerage fees, and fit-out works costs are frequently underestimated or omitted. For new builds, furniture and connection fees are added. These omissions can result in a shortfall in the down payment at signing.
How does the broker use the total transaction cost to build the financing plan?
The broker itemises each cost with the client, then compares the total against the available down payment. The difference determines the loan amount needed. If the down payment is less than the ancillary costs (notary + guarantee + arrangement fees), the financing plan includes a 110% loan whose feasibility depends on the profile and targeted banks.
In practice
For a property at €280,000, the total transaction cost reaches approximately €310,000 after adding notary fees (around 8%), surety fee (1%), brokerage fees, and works. The borrower must have a down payment covering at minimum the non-financed costs.
Official sources
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr