The borrower insurance is an essential security to subscribe a mortgage. Lending institutions will not lend you money if you do not have it.
Because indeed, this insurance borrower will support the repayment of your loan if unfortunately you can not assume this one. This allows banks and credit organizations to ensure that they will be repaid even if the borrower dies or becomes unable to work due to an accident.
Currently the law says what?
Since 2010, the Lagarde law allows consumers to take the insurance of their choice. Indeed credit agreements now stipulate that the lender’s insurance is optional. Nevertheless the lender may require insurance for the release of funds. It is your responsibility to bring you closer to a broker in order to set up a contract for the benefit of the lender with guarantee at least equal to the proposal of the bank.
Today, it is possible to go to specialized institutions in the insurance borrower to benefit from insurance coverage more competitive than the offer of the bank.
The Hamon law of 2014 says that it is possible to negotiate mortgage loan insurance only during the first year of the contract. The reference date is the date on which you accepted the credit agreement offer. After this anniversary, it’s too late.
A law that would save money: the law Sapin 2
The Sapin II law could soon be put in place. It would cancel the Hamon law and allow renegotiation of its loan insurance every year, beyond the 12-month period. This new law would be a boon to individuals but a pet peeve for banks. Indeed, they own more than 80% of the market.
As a result, their profit would amount to 3 billion dollars. If the law passes, you can negotiate your loan insurance every year if you find better elsewhere. Two solutions are possible to find better insurance or a better rate of real estate insurance through a broker or directly by an insurance company. The only condition is that the guarantees granted in the new contract are identical or superior to those of the initial contract. Subscribed with the bank.
Concrete example: A couple who borrowed $ 200,000 over 20 years at an insurance rate of 0.27% at bank X could benefit from a rate of 0.10% by switching to insurer Y. What would save them about $ 8,700 on the total cost of borrower insurance.
How to find the best insurance borrower?
Not easy to navigate with all the players on the market. They all have, supposedly, the best deals. But in the end, how to compare all without engaging in complex and tedious steps?
The ideal is to go through an insurance broker. His role is to connect the individual with the company that offers the best price offer / guarantees on the market. The specialized service dedicated to creditor insurance, and privileged partner of CreGo, is Essargo. Rich of its 10 years of expertise, Essargo negotiates for you, the best solution and accompanies you in the steps with the bank.
Do not hesitate to contact us directly if you wish to receive information about Essargo.