Warning: Last minute! The following lines were written in 2017. It is now early 2018. The following text is nevertheless still relevant. But we must add the following details:
The new law “Sapin 2” came into force on January 1, 2018, it is now possible to change borrower insurance on each anniversary date of the contract (regardless of the age of the mortgage loan). With a notice period of two months. This is an opportunity to make big and sometimes very big savings. Do not hesitate, make requests and compare!
We continue our series of explanatory articles on mortgage insurance. We have already mentioned in our previous publications what was a borrower insurance .
Can we change borrower insurance ?
It is possible to change credit insurance under certain conditions. Some recent legal provisions have changed the rules. These changes are a step in the right direction since they allow consumers to change insurance more easily.
What does the law say ?
The Lagarde law of 2010 allows borrowers to subscribe to mortgage insurance other than that proposed by the bank.
While the Lagarde Act was a breakthrough that allowed the competition to flourish, in reality it was very difficult to get a banker to admit that the mortgage loan he was making would be provided by a company with which he had not used to work. When a client seemed to want to make the competition work, the banker did everything to dissuade him by explaining that the rate agreed was valid only on condition of subscribing their insurance loan … So much that many households renounced .
The Hamon law of 2014 . This new provision now allows people who have taken out a mortgage to change borrower insurance before the first anniversary of the loan.
Explanations : A consumer who has signed a credit agreement with credit insurance can cancel the insurance within one year . On the express condition that the guarantees of the new insurance are at least equivalent to those subscribed initially.
Attention : The one year deadline is counted, not from the release of the funds but from the signature of the loan offer.
OUR OPINION and OUR ADVICE .
- The purchase of real estate often generates a lot of stress because the amounts involved are very high and most households are poorly informed about the rules and their rights. This explains why he often does not think or dares to insist on the banker’s competition for loan insurance. That’s why we consider the Hamon law to be welcome . since it allows contractors to revert to their signature on the borrower insurance contract.
- Feel free to prospect insurers and ask them for quantified proposals to secure your mortgage. The game is worth the candle since it is sometimes possible to divide the cost of the insurance monthly payment by two.
- To answer a frequently asked question : We explained in a previous article that the borrower insurance is not mandatory . However, from the moment the borrower undertakes to insure his loan upon signature of the contract, he is obliged to insure it until the payment of the last installment. It is therefore impossible to rely on the Hamon law to terminate the borrower insurance without the equivalent insurance taking over.
- After the period of one year it is in principle possible to cancel the insurance at least two months before the anniversary date of the signature. Provided that you have taken out insurance covering at least my same guarantees. ( We advise you to re-read your contract to check the general conditions of the insurance ).
- Terminations must be by registered letter with acknowledgment of receipt .