Crédit Logement surety
The most widely used mortgage guarantee in France, offered by Crédit Logement (a subsidiary of the major banks). It replaces the mortgage in most residential files: cheaper to set up, with no release fees on early sale, and with partial return of the mutual guarantee fund at loan end. The bank submits the file to Crédit Logement, which accepts or declines the surety based on its own risk criteria.
Key points
- Offered by Crédit Logement, a subsidiary of the major French banks, on the majority of residential files.
- Lower setup cost than a conventional mortgage (no notary registration fees).
- No release fees on early repayment or sale of the property.
- The bank submits the file to Crédit Logement, which applies its own risk criteria independently of the bank.
Frequently asked questions
In what cases can Crédit Logement refuse to guarantee a file the bank is willing to finance?
Crédit Logement has its own risk grids: it may decline a file it considers too fragile (borderline debt ratio, self-employed with variable income, first-time buyer with insufficient deposit) even if the bank has granted its agreement in principle. The broker must then find an alternative: mortgage, PPD, or another surety provider.
What is the difference between a Crédit Logement surety and a civil-servant mutual guarantee?
Mutual guarantee funds (CASDEN, MNF, etc.) offer sureties reserved for certain professions (civil servants, teachers) and may provide preferential pricing or different acceptance criteria. The Crédit Logement surety is open to all borrowers on purely financial criteria, with no link to a specific profession.
How does the broker present the Crédit Logement surety versus a mortgage to a borrower?
The broker highlights the lower total cost (reduced setup fees, no release fees, partial FMG return), the administrative simplicity (no notary visit for the security), and the speed of setup. They also explain that the surety does not protect the borrower from subrogation: in the event of default, Crédit Logement will turn to them for recovery.
In practice
For a €200,000 loan, setting up a Crédit Logement surety costs around €1,500 in fixed fees plus a FMG contribution. At loan end, around €1,000 is returned to the borrower. A conventional mortgage for the same amount would have cost approximately €2,500–€3,000 in irrecoverable fees.
Official sources
- The home loan guarantee (Crédit Logement surety) · Crédit Logement
- Do you need a guarantor to obtain a home loan? · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr