What Is a Guarantee Fee?

Mortgage guarantee fee means that in order to avoid the risk of mortgage, the bank generally needs the borrower to provide a certificate of guarantee from a legal person, other economic organization or natural person with sufficient solvency. If you can find a friend or relative who has the financial strength to provide you with a guarantee, then they can issue a written document and credit certificate for the bank that is willing to guarantee. If not, you need to go to a professional guarantee company, they will provide you with guarantees, and the fees paid at this time.

Mortgage Guarantee Fee

When buying a house, the guarantees and notarization fees generated during the application of the housing provident fund loan will be cancelled. Therefore, if you encounter similar costs when buying a house, you can refuse to pay.

On August 22, 2014, the Ministry of Housing and Urban-Rural Development issued the Notice on Carrying out Special Inspections on Strengthening and Improving Housing Provident Fund Services (hereinafter referred to as the Notice), and decided to launch special supervision on strengthening and improving housing provident fund services throughout the country in the second half of the year. check. The "Notice" mentioned that the intermediate fees will be reduced and cancelled

The inspection involves five aspects of housing provident fund services:
Establish various service systems such as first-question responsibility, one-time notification, time-limited settlement, and service commitment;
Simplify the business procedures reasonably on the premise of ensuring the safety of funds and effective risk control;
Remove compulsory insurance, notarization and guarantee, and other unreasonable charges, and reduce the fees for services such as copying and printing provided on-site for business operations;
Equipped with self-service inquiry terminal, number calling machine, rest chair, water dispenser and other facilities at service outlets, and gradually establish a four-in-one service system of online service hall, 12329 service hotline, mobile phone short message platform, and outlet service;
Strengthen the provision of housing provident fund service personnel, and promote training, assessment and accountability mechanisms.
Among them, it is particularly noteworthy that the cancellation of some intermediate fees. According to the Regulations on the Management of Housing Provident Funds, guarantees must be provided when applying for housing provident fund loans. Two natural person guarantees can be selected, or a guarantee company recognized by the Housing Provident Fund Management Center can be chosen.
In the actual operation process, most people choose to be guaranteed by a guarantee company, which incurs guarantee costs. For example, based on a borrower's loan of 300,000 yuan and a loan term of 30 years, the guarantee fee to be paid exceeds 4,000 yuan. In other words, once the intermediate fees are cancelled, buyers can save a lot of money. ^[2]