One of lime and one of sand. This could summarize the final resolution on who has to pay theTax on Documented Legal Acts. This Tuesday, theSupreme CourtHe decided that customers are the ones who have to face this payment. The executive, led byPedro Sánchez, has respected his decision, but has chosen to approvea royal decree law to regulate the IAJDand that it is the financial entities that pay this tax.
Banks have had the first impact of both decisions in theIBEX 35, after raising by the decision of the Court the decision of the President of the Government has moderated the profits of these listed companies. Now it remains to be seen, if the mortgaged future also ends up paying its share of this tax.
If the banks are responsible for the payment of this tax, each entity will have to paybetween 1,000 and 3,000 euros, according to mortgage and autonomous community. It is worth remembering that this tax is set by each region, so to pay it in Andalusia is to assume 1.5% while in Madrid it is 0.75%. In this way,the bank will not pay the same fora mortgagein one autonomous community than in another,so it could restrict the loan terms to some customers.
Will there be hardening of conditions?
From October 18 to November 4 some entities modified their offers, however, from day 5 the conditions have remained stable.Now it remains to be seen if banks decide to compensate this tax with a rise in interest rates. This move would be the most natural because there is no law that prevents increases in interest rates. Something that does not happen in the opening commissions or in the study commission where the bank does not have full freedom of action.
Banks only need to raise their TIN by 0.11% to pay the IAJD
For example, for a mortgage of 200,000 euros to 20 years at a fixed rate of 2%, the client will pay at the end of the life of the loan 242,824 euros, interest of 42,824 euros. If the bank decides to raise your TIN to 2.11%, a customer with the same characteristics will now pay 245,332 euros, 2,508 euros more in interest. With a slight rise of 0.11% in the TIN, the entity would already be recovering the cost of the tax.
The bank will assume an extra cost of almost 93 million monthly
If we analyze this data by autonomous community we can see that in the case of regions that charge 1.5% like Madrid or Catalonia, for a mortgage of 200,000 (following the example) the banks will pay about 3,000 euros. If a day is signed2010 mortgage, the cost of financial institutions in a working day of mortgage companies would amount to 4,644,981 euros. This amount goes up to 92,899,620 euros per month. To make this calculation we have taken into account the mortgages signed between January and August of 2018(321,657). After taking the monthly average we have divided it between 20 working days per month, which gives a result of 2,010 mortgages.
In the case of communities with the lowest tax(Navarre or Basque Country), the amount to be paid by the bank amounts to 1,000 euros, 2,010,356 a day and 40,207,125 a month. If we calculate the average cost of this tax, it gives us the figure of 1.15%, an amount that supposes 2,310 euros, almost the same as that which would increase the TIN of fixed mortgages by 0.11%.
In the case of the opening commission, currentlythere are entities that charge 0%and others that have a percentage that reaches up to 2%. In the case of entities that do not charge for this expense, increasing their percentage by 1%, in the case of a mortgage of 200,000 euros, they would already be earning 2,000, almost the amount of the IAJD.
Another one of the options that could have on the table the entities would be the one ofraise the commission for the study of the mortgage. In this way, they would ensure the collection of an amount at the beginning of the loan process. Its operation is very similar to that of the opening commission and the percentage could be maintained at the same scale, between 0.5% and 1.5%.
It remains to be seen if entities perform their movementsin block or individually. Those that manage to maintain the most tractive types could benefit from what could be a new mortgage war.