Banks are thinking twice about lending hundreds of thousands of dollars to aspiring homeowners.
Many precautions are in fact aimed at limiting the risk of default in repayments.
And when a file does not present satisfactory financial guarantees, the banker can demand to go through a system of guarantees.
You will then have the choice between a mortgage and a joint surety, which is more advantageous.
Explanations.
Mutualize the risks
It is very rare to find a close relative presenting not only all the guarantees of solvency, but also who agrees to engage his responsibility on a credit being able to reach twenty or twenty-five years, in view of all the uncertainties of such a long period. duration. Rather than calling on a person, it is therefore a question of going through a specialized company. This is called mutual guarantee or home loan surety companies. There are a multitude of them in France, some dedicated to the needs of civil servants and others for the private sector.
Modeled on complementary health insurance, this loan guarantee method is based on the pooling of risks.
Thus, the subscription of each new borrower is used to supply a common fund that can be used in the default of another debtor, unable to meet its repayments.
Economical and flexible
This formula has advantages for the borrower. Above all, it is economical. While a mortgage costs between 3% and 5% of the amount borrowed, this method of collateral costs between 1% and 2.5% of the amount of the loan. You will gain in administrative terms, because a simple private deed is enough. Exit then the notary and his entry and release fees. On the cost side, the mutual guarantee is made up of a contribution, which will be fully refunded to you in the event of total absence of delay and default of payment, and a commission similar to administration fees.
Likewise, this coverage is flexible since it is not linked to a particular asset, but to the balance of a debt.
Consequently, a change of address, in the event of the resale of the accommodation and the purchase of another property, will only require a modification of the file at no additional cost.
Finally, the surety company is reassuring.
Thus, in the event of a financial problem, she will contact you to study with you a new repayment plan, while your home will have a better chance of ending up at auction to honor your debt in the case of a mortgage guarantee.
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