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Everything you need to know about property registration fee

We tip our hat to you for wanting to read what is probably one of the most boring articles online.
However, the property registration fee is an important topic when it comes to buying a new home. This is because it is a considerable cost that you need to consider carefully when planning the total financing of your new home.
There are many technical terms to relate to regarding buying a house or an owner-occupied flat. One of them is property registration fee. In this article, we guide you through what it means for your purchase, and how you can save money on it.

Underskif

What is a property registration fee?

First: What does house registration even mean? When you register your new home, you pay a registration fee which is the public registration of rights over the home. This means that you will be registered as the house owner and thus secure all rights over it.

When the deed is registered, the seller will hand all rights and obligations to the buyer.

This means that you will gain the home's ownership and officially become its owner.

Thus, the property registration fee is a fee that you, as the buyer, pay the state for buying your new home. You will often have to pay two types of registration fees: As mentioned, you will have to pay for the registration of the deed that documents your ownership over the home. Also, you must pay for the registration of one or more mortgage deeds describing the loans you have taken out to finance buying the home.

Choose the right house mortgage; read more here

Buyer's Agent

Property registration fee on the deed

When buying a house in Denmark, you pay a fixed basic amount of 1.750 kr. for the registration of the deed. Besides this, you pay a variable value fee of 0,6% of the purchase price. Let us show an example:

You buy a house for 2,8 million kr. Therefore, the registration fee will be:

Fixed basic amount: 1.750 kr.

Variable value fee: 0,6% of 2.800.000 = 16.800 kr.

Total registration fee: 1.750 + 16.800 = 18.550 kr.

Property registration fee on mortgage deeds:

Again, you pay a fixed basic amount of 1.730 kr. for the registration of the mortgage deed to the mortgage- and housing loan. The variable fee on the mortgage deed is 1,45% of the principal of the loan. Also, remember that you must be able to pay a minimum of 5% of the home yourself. Of course, your down payment is not part of the calculation.

With the same example, the registration fee on this part will therefore be:

Fixed basic amount: 1.730 kr.

Variable value fee: 1,45% of 2.800.000 = 40.600 kr.

Total registration fee: 1.730 + 40.600 = 42.330 kr.

Both fees can be financed through the mortgage- or housing loan.

Read more about home purchase in Denmark here.

How to save money on the property registration fee

The registration fee is an expensive cost – especially for buyers who take out a big mortgage loan to finance buying the home. However, you can save a lot of money by using the right advisers during the process.

The biggest reduction of the registration fee can be gained via a so-called stamp refund. This only apply to the registration fee on the mortgage deed. A stamp refund is possible if the seller of the home has an existing loan in the property. Thus, you deduct the loan that is already in the property so the total amount of the variable cost decreases.

If the seller of the 2,8 million kr. home already has a mortgage deed of 1,5 million kr., you only have to pay the variable fee of 1,45% of 1,3 million kr. This way, you save 21.750 kr.

Typically, the registration of the deed takes place via a housing lawyer. At Bomae, we have experienced legal advisors who are a part of our total counselling offer. Thereby, you also save the expenses for a lawyer if you choose to consult a buyer’s agent like Bomae.

You might also find it interesting to read our home buyers guide on when is the best time to buy?

How to register your property

When you have read this article, you might think: How do I get the house registration documents? And can we register property online? The answer is yes, you can register property online. You can find information about your property on the property registration authority tinglysning.dk. Afterwards, you fill out the house registration documents, and after 1-2 days the registration will be completed.

Even though you can do it yourself, we recommend you to authorize a lawyer, a buyer’s agent or a real estate agent to register e.g. the deed for you. This way, you make sure to do it the right way, and you will not have to go through the trouble yourself.

Buyer's Agent

Please fill out the contact form, so we can talk about how we can help you with the purchase and financing of your home.

    Or call 70 40 03 36, Monday to Sunday 9:00-20:00