Getting a home loan is more or less easy depending on your professional situation. Thus, civil servants enjoy certain benefits. And yes, you do not risk losing your job and it is a major asset for banks.
In addition, some specialized bonding agencies for civil servants offer very attractive rates. We will introduce you to the different organizations and their benefits.
1. The home loan surety
The guarantee is mandatory to obtain a mortgage. It insures the repayment of the bank in the event of default of payment outside the cases covered by the borrower insurance . There are two types of warranty:
- The real guarantees taken on the real estate
- Personal guarantees are the evaluation of your solvency and are issued by surety organizations such as Crédit Logement .
These real guarantees can be either a registration lender’s lien (IPPD). The lender (the bank) has a lien, in case of default of payment, the real estate will be seized to be auctioned . The mortgage operates on the principle that the IPPD applies to all situations, unlike the IPPD.
Personal guarantees are taken by sureties that assess your creditworthiness . In concrete terms, they also study your file and can refuse it even if the bank accepts it. This type of guarantee is often less expensive because unlike the mortgage, you do not need a notary and in case of early repayment you will not pay a prepayment fee.
You can use collateral in different types of real estate project. We have summarized in the table below the different cases.
|Real guarantees||Personal guarantees|
|Initial loan||Old off work or nine completed||Always possible||–||Only for loans in fine, most often doubled by a deposit, IPPD or mortgage||Yes except for loan NOT, subject to acceptance|
|Individual house construction – Land|
|Construction detached house – House||Impossible||Always possible|
|Works on good old|
Except if purchase during construction (IPPD applicable to the part already built)
|Other loans||Loan purchase||Impossible|
Public service employees can enjoy benefits on the guarantee. Indeed, there are dedicated organizations.
2. Real estate loan guarantees for civil servants
If you choose a personal surety, you must necessarily go through an organization. As explained above, the organization will take over in case of unpaid. Some mutual funds offer very advantageous conditions for civil servants.
Public servants, not the only privileged
A mutual bonding agency official works pretty much like a conventional bonding agency. However, they are only for certain professions:
- National Education officials
- Police and Gendarmes
- Hospital employees
- The agents of the SNCF
- Employees of the Post
This type of organization generally operates in a mutual mode. The organization has a mutual fund to which you adhere, that is to say, the risks are pooled. In case of unpaid, the fund will pay your mortgage. The guarantee is used when the borrower insurance no longer covers the outstanding payments.
The conditions of access to the official guarantee body
The conditions for granting this type of guarantee are very strict . You must be able to present a file with a debt ratio lower than or equal to 33% and a personal contribution that can cover notary fees and the implementation of the guarantee. The duration of your mortgage can also be a factor of acceptance or refusal by the surety organization.
Before you find out about the different bonding agencies for civil servants, you need to know in which bank you will borrow. Indeed, not all banks have an agreement with all mutual guarantee organizations.
3. Other benefits for civil servants
An even lower cost of credit
A mutual guarantee organization offers several non-negligible benefits and can significantly reduce the total cost of your mortgage. First of all, certain organizations propose to the “good customers” to repay the paid premiums at the end of the guarantee if you have not encountered payment incidents .
In addition, with your status as a public servant, you have job security. You are therefore a good profile for banks that do not fear the inability to repay the loan. Combine your professional situation with a body of recognized deposits, the banks will want to offer you an interesting mortgage. They will be able to offer you lower interest rates .
There are other advantages, the administrative and legal formalities of setting up the guarantee are more flexible. You do not need to formalize the guarantee with a notary. The borrower therefore saves on the total cost of credit through simplified procedures. In addition, the auctioning of the property , in case of default, is the last resort. It is therefore rare that your property is sold in case of non-payment of monthly payments.
Mutual guarantee agencies official
There are different mutual guarantee agencies for civil servants. However you can not choose the one you want. Indeed, not all banks necessarily work with mutual guarantee companies. In addition, some banks work exclusively with certain organizations.
The best known company is CASDEN. This cooperative bank of the public service proposes to subscribe to a guarantee without expenses. This organization dedicated to teachers has been open to all professionals of the public service since 2015.
The people’s bank , BRED and BRED Espace in particular work with CASDEN.
Other known organizations offering this type of guarantee are:
- The Social Credit of the officials
- The MFP services ( Société Générale works with the MFP)
- The general mutual of the National Education