Collateral, mortgage registration and guarantee companies
Registered mortgage, guarantee-company role, guarantors, and default consequences.
A mortgage lender registers a first-ranking mortgage over the property; a guarantee company can pay the bank if you default, but you then owe the guarantee company, and a joint guarantor takes on extensive liability.
Key points
- The lender registers a first-ranking mortgage (抵当権) over the property.
- A guarantee company (保証会社) screens you and can pay the bank on default — but you then owe the guarantor.
- Guarantee performance does not erase your debt; the claim transfers to the guarantee company.
- A joint guarantor (連帯保証人) is not a character reference — the liability can be extensive.
Collateral and mortgage registration
Collateral (担保) is an asset securing the loan. A mortgage lender registers a first-ranking mortgage (抵当権) over the property, which gives the lower rates and longer terms of secured lending. If you default, enforcement can lead to a sale, and surrendering the property does not necessarily erase any remaining deficiency — you can still owe the shortfall between the sale proceeds and the balance.
Guarantee companies and joint guarantors
A guarantee company (保証会社) guarantees repayment to the lender after screening you. If it pays the bank on your default, your debt is not erased — the claim generally transfers to the guarantee company, which then pursues you. A "no guarantee fee" product may instead charge a percentage-based origination fee or build the cost into the rate, so compare the total. A joint guarantor (連帯保証人) is a person liable under the guarantee terms; this is not merely a character reference, the liability can be extensive, and it should never be accepted casually.
Key points to carry away: The lender registers a first-ranking mortgage (抵当権) over the property; A guarantee company (保証会社) screens you and can pay the bank on default — but you then owe the guarantor; Guarantee performance does not erase your debt; the claim transfers to the guarantee company; A joint guarantor (連帯保証人) is not a character reference — the liability can be extensive. Use the linked guides and calculators for the full decision, and confirm anything material with the lender, a licensed broker, a judicial scrivener, or a tax accountant before you act.
Who this is for
- Borrowers comparing guarantee-fee models
- Anyone asked to be a guarantor
What this is not
- A legal opinion on guarantor liability
- Never accept joint-guarantor status casually; liability can be extensive and long-lasting.
Frequently asked questions
What is collateral?
Property pledged to secure repayment; a mortgage lender registers a first-ranking mortgage over it.
What is a mortgage registration?
The lender’s registered security right over the property.
What is a guarantee company?
An entity that pays the lender after qualifying default and then pursues the borrower for the amount.
Does guarantee performance erase my debt?
No. The claim generally transfers to the guarantee company, which then pursues you.