The cost of home loan guarantees varies according to the guarantee subscribed, here is an explanation of the main items of expenditure that they represent:
The cost of home loan collateral: Mortgage and lien registration
These guarantees of mortgages being at the initiative of the State, they must obligatorily be noted by a notarial act, to be the object of an inscription in the office of the mortgages. The costs related to the registration formalities of the mortgage by the notary represent about 2% of the guaranteed amount and about 1% of the amount guaranteed for the IPPD. In the event of repayment of the loan before its maturity, the borrower will have to pay a mortgage release fee.
The cost of the bank guarantee
The cost of bank guarantees varies depending on the bonding organization selected. Having been created with the aim of competing with state guarantees, deposits are very competitive in terms of their tariff, and some organizations return at the end of the loan part of the premium initially paid to the borrower who can almost reach 75%. % of initial cost.
The cost of the mutual guarantee official
The cost of the mutual guarantee official is usually even more interesting for the borrower. Some organizations take full charge of the cost of this mortgage loan guarantee.