What are the different types of guarantee for a home loan ?

When you take out a home loan, it's important to know that there are several types of guarantee available to ensure repayment of the loan in the event of your defaulting.

The mortgage guarantee is the most common : It involves pledging the property you have bought as collateral. If you fail to pay, the bank can seize the property and auction it off to recover the sums due.

A surety is another form of guarantee : it involves a natural or legal person (a surety company) guaranteeing repayment of the loan in the event of your defaulting. This person or company undertakes to repay the loan on your behalf if you are no longer able to do so.

Finally, there is also the personal guarantee : which consists of a promise on your part to repay the loan in full, even if you can no longer afford to do so. This guarantee is often requested by people who do not have a property to mortgage or who do not have a solvent guarantor.

It's important to think carefully about the guarantee you choose, because it can have an impact on the total cost of your mortgage.