What guarantees for a mortgage: types and importance

Obtaining a mortgage is a crucial step in acquiring a property. Being a passionate legal specialist, I know how important it is to understand the Guarantees for a mortgage. These guarantees protect the bank in the event of payment defect, but they also have a significant impact on your project. Let me guide you through this complex subject with clarity and expertise.

The different types of guarantees for your mortgage

In my career, I saw many borrowers perplexed in the face of guarantee options. It is important to understand them to make the best choice. Here are the main guarantees you will meet:

Conventional mortgage

The mortgage is a real guarantee taken on property. It allows the bank to enter and sell the property in the event of non-reimbursement. This option requires a notarial act and registration in the land advertising service. Its cost is around 2% of the loan amount, including notary fees and taxes. Please note, release fees apply in the event of early repayment or the sale of the property.

The Special legal mortgage of the lender of deniers

This guarantee is similar to the classic but less expensive mortgage. It only applies to existing goods, excluding sales in the future state of completion (VEFA) or works. Its major advantage is the exemption from the land advertising tax. With this option, the bank becomes a privileged creditor.

Bonding by a specialized company

In this case, an organization is guaranteed for the borrower. It is generally less expensive than the mortgage because there is no notary or release fees. Guarantee costs are proportional to the amount of the loan. An interesting advantage: some organizations offer a partial restitution of costs at the end of the loan.

Here is a comparative table of the main surety organizations:

The importance of choosing the warranty for your loan

The choice of guarantee is not trivial. It impacts not only your budget but also your future flexibility. Here are the key points to consider:

Costs associated with guarantees

The costs vary considerably depending on the type of warranty chosen. The mortgage can cost up to 2% of the loan amount, while the surety is generally less expensive. Do not forget the possibility of partial restitution for certain sureties, which can reduce the final cost.

The choice imposed or negotiated

Often, the bank requires the type of warranty. However, it is sometimes possible to negotiate. For example, the deposit is generally recommended for old goods if you provide a resale before the end of the loan. On the other hand, the mortgage is compulsory for certain types of loans, such as the loan of social accession (not) exceeding € 15,000.

Specificities according to your project

Your personal situation and the type of property influence the choice of guarantee. For a rental investment, for example, the death guarantees and total and irreversible loss of autonomy (PTIA) are generally sufficient. Optional guarantees can be added according to your profile, such as disability or loss of job.

I remember a client who hesitated between a mortgage and a deposit for his first purchase. After analyzing his situation, we opted for the surety, which allowed him to save on the initial costs and to benefit from a partial restitution at the end of the loan.

Optimize your mortgage guarantee

To get the most out of your loan guarantee, here are some wise advice:

• Compare offers from different banks and bail organizations.
• Negotiate the warranty costs, especially if you have a good file.
• Consider the insurance delegation to reduce your overall costs.
• Thinking in the long term: a cheaper warranty at the start can be more expensive over the length of the loan.

Remember that the loan guarantee is separate from borrower insurance. The latter protects you, you, while the guarantee secures the bank. Both are generally required and play additional roles in your mortgage.

As a committed professional, I strongly recommend that you take the time to study each option. An informed choice can save you thousands of euros over the duration of your loan. Do not hesitate to request the opinion of an expert to guide you in this crucial decision.

THE Guarantees for a mortgage are a key element of your funding. Well understood and well chosen, they can greatly facilitate your real estate project. Stay informed, ask questions, and do not hesitate to negotiate to obtain the best possible conditions.

To deepen your knowledge on this subject, I invite you to consult the following resources: Wiki lawyer and official legifrance.