Obtaining a home loan requires the payment of ancillary costs, in addition to the repayment of interest. warranty costs of a credit are part of it and can represent a significant part of the amount borrowed, especially in a context of rising interest rates. Here’s what you need to know about these fees.
What are the guarantee fees for a home loan used for?
The warranty exists for reassure the bank, which takes a risk by lending money to an individual. It can take different forms, such as a surety or a mortgage on the property.
Warranty costs should not be confused with borrower insurance, who takes over in the event of death, loss of autonomy or disability of the borrower. The guarantee is then activated in the event of inability to pay which is not linked to these previous reasons.
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Paid at the time of signing the deed of sale, these fees are mandatory. You must therefore ensure that you have sufficient funds at this time. Otherwise, the sale may be blocked.
What forms can the guarantee take?
The most common way to provide collateral is to use a caution. It can come from a specialized private company, a mutual insurance company (in particular among civil servants) or even, in rare cases, from someone close to the individual borrower. In the event of default, the organization…
2023-06-14 21:11:39
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