Ah, guarantees for a mortgage! A subject that may seem complex at first, but which is essential for any future owner. As a real estate law specialist, I am passionate about this field and I wish to share my expertise with you to help you see more clearly. Dive together in this exciting universe of loan guarantees, a key element of your real estate project.
The different types of guarantees for a mortgage
When you contract a mortgagethe bank seeks to protect itself from the risk of non-reimbursement. This is where the guarantees come. There are several options, each with its particularities:
Mortgage: real security on good
The mortgage is a solid guarantee that gives the bank a right on your property. In the event of a defect in payment, the lender can enter and sell the property to recover its due. It is an option often used, but which involves significant notarial costs, generally around 2% of the amount borrowed.
The privilege of lender of money (PPD): cousin of the mortgage
The PPD, now called Special legal mortgage of the lender of deniersis similar to the mortgage but only applies to existing goods. It cannot therefore be used for new construction or work. Like the mortgage, it requires a notarial act and generates comparable costs.
Surety: the most widespread guarantee
Bonding is a personal guarantee provided by a specialized organization that is surety for you. It is currently the most common solution, used in around 60% of cases. It has the advantage of being generally less expensive than the mortgage, and part of the costs can even be returned to you at the end of the loan.
Here is a comparative table of the main guarantees:
| Type the warranty | Approximate cost | Benefits | Disadvantages |
|---|---|---|---|
| Mortgage | 2% of the loan amount | Solid for the bank | High, costly release |
| PPD | 2% of the loan amount | Similar to the mortgage | Limited to existing goods |
| Deposit | 1-1.5% of the loan amount | Cheaper, possible partial restitution | Can be refused according to the profile |
How to choose the guarantee adapted to your situation?
The choice of Guarantee for a mortgage depends on several factors. Here are some tips to guide you:
Evaluate the duration of detention of the property
If you think you are reselling the good before the end of the loan, the surety may be more advantageous. You will thus avoid the Morterevés of Mortgage in the event of early resale. I have often seen customers save substantial sums thanks to this judicious choice.
Consider the type of project
For a property for sale in the future state of completion (VEFA) or important work, know that certain guarantees such as the PPD do not apply. In this case, the mortgage or deposit will be your options. Do not hesitate to consult a guide on obtaining a building permit if your project involves a new construction.
Analyze bank offers
Often, the bank requires a type of warranty. However, it is always useful to compare offers from different establishments. Costs may vary significantly depending on the amount of the loan and the policy of the lending organization.
Remember that the guarantee is separate from borrower insurance, although both are generally required by the bank. Insurance protects in the event of incapacity for reimbursement due to personal events (death, disability, etc.), while the guarantee secures the lender in the event of default.
During my consultations, I always recommend that my customers distinguish these two elements to avoid any confusion. Besides, if you embark on a commercial project, know that the guarantees may differ. You can consult this guide on writing a commercial lease for more information on the specifics of professional goods.
Tips to optimize your mortgage loan guarantees
With my experience in the field, I can give you some advice to get the most out of your guarantees:
- Negotiate the costs: some banks can offer discounts on warranty costs, especially if you bring together several services at home.
- Consider the transfer of mortgage: if you sell to buy, it is sometimes possible to transfer the mortgage to the new property, thus avoiding certain costs.
- Be vigilant to the clauses: read the conditions of your guarantee carefully, in particular concerning the procedures in the event of unpaid.
In case of difficulty, know that the law protects you. For example, you benefit from a right of withdrawal for a real estate purchase, which leaves you a period of reflection after the signing of the sales compromise.
In short, choosing the right guarantee for your mortgage is an important decision that deserves in -depth reflection. Do not hesitate to be advised by real estate law to make the best decision according to your personal situation. With the right guarantees, your real estate project will be on solid foundations!
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