Crédit Logement (guarantor)
The leading French bank-guarantee body, owned by the major banks. It assesses the file's risk and, if accepted, guarantees the loan without a mortgage registration. Part of the contribution paid into its Mutual Guarantee Fund can be refunded at the end of the loan if no incident occurred.
Key points
- France's leading bank-surety body, accepted by virtually all major banks.
- Its approval is independent of the bank's: a file can be validated by the bank and rejected by Crédit Logement.
- The contribution breaks down into a guarantee commission (non-refundable) and an FMG share (partly refundable).
- No mortgage registration, so no release fees at the end of the loan.
Frequently asked questions
How does Crédit Logement assess a loan file?
Crédit Logement applies a proprietary score that takes into account income, professional stability, debt ratio, disposable income, personal contribution and the quality of the financed property. This scoring is distinct from the bank's and can lead to different decisions. In the event of rejection, the body generally does not share the detail of its analysis, which limits the scope for counter-argument.
What happens if Crédit Logement rejects a file the bank has accepted?
The loan cannot be granted in the surety form envisaged: the bank must either accept an alternative security (mortgage, IPPD, other guarantor body) or reformulate its offer. Some banks have their own in-house surety body as an alternative. The broker anticipates this risk by identifying upfront atypical profiles likely to be rejected and prepares a fallback solution.
What is the advantage of Crédit Logement over a mortgage-based surety?
The main advantage is financial and administrative: without a mortgage registration, the borrower avoids land-registration tax, notary emoluments related to the security, and release fees at loan end or in the event of early sale. Speed of implementation is also better: no notary appointment needed to set up the security. The trade-off is the body's acceptance of the file.
In practice
On a €250,000 loan, the broker compares the two securities: a mortgage costs around €2,800 in total fees (including land-registration tax) with no refund possible, while Crédit Logement represents around €2,000 in contributions of which €1,200 are potentially refundable at loan end, giving a possible net cost of around €800.
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