by Charlotte Bedon June 14, 2022
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By imposing it, the banks offer themselves a guarantee of compensation in the event of incapacity, disability or death. This coverage often comes at a significant cost. Luckily, By the Lemoine Law of February 28, 2022And the Changing a borrower’s insurance becomes easier. To learn more about the measures applied, that’s right In the first part of this article.
Concretely, the steps for concluding a new contract are simple. After comparing the different offers and choosing the most suitable oneit is necessary to download a file.
The insurance authorization letter must then be sent to the bank. Finally, it will be necessary to wait about ten days to receive the latter’s decision and terminate the old contract. We detail all this in the second part of this article.
To learn all about the change in mortgage insurance, the Lemoine Act procedures, the steps to take, as well as refer to our standard letter to send to your bank, continue reading this article.
Changing Mortgage Loan Insurance: Changes in 2022
Possibility to change the borrower’s insurance at any time
Before the Lemoine Act, changing a borrower’s insurance was difficult. In fact, A certain time had to be respected Very accurate according to the date of signing the contract. During the first year of the loan, it was possible to withdraw at any time of course, but after that, it was necessary to wait for the anniversary date to send your authorization letter.
From now on, it will be possible to terminate your commitment at any time. :
- from 1VerseJune 2022 for new home loans;
- from 1VerseSeptember 2022 for current contracts.
This new right and methods of implementation must To be explained and detailed by insurance companies. It is a legal obligation imposed on them.
End of the health questionnaire with certain conditions
All borrowers had to comply with The imperative of a health questionnaire. Intrusive and discriminatory, and today it is on the verge of disappearing.
In fact, from 1Verse June 2022, this document will not be necessary if :
- The loan is less than €200,000 for a single person or €400,000 for a couple;
- The total repayment of the said loan is scheduled before 60eBorrower’s birthday.
By this scale, Future policy holders considered ‘at risk’ For health reasons it is no longer necessary to tolerate the voluntary increase in their contribution or the various and varied exceptions.
The period of the right to be forgotten has been greatly reduced
Directly related to the health questionnaire, the right to be forgotten is Not to announce the pathology to the future insurance company after a certain period of time Elapsed since the end of the treatment protocol. It is especially applied to people who have had cancer.
previously, This period was 10 years. Previous patients had to report their health problem during the 10 years after their remission, and thus received additional premiums and exclusions from coverage. With Lemoine’s Law, This period has been increased to 5 years It will extend to people infected with hepatitis C.
As of July 31, 2022, the signatories have agreed The Arras agreement will sign an additional agreement so that other diseases are also covered. Additional premiums will also be better supervised, or even eliminated entirely. Finally, the borrowing cap will be reassessed.
The advantages of changing a borrower’s insurance are manifold. Closer to your needs, more suitable for your current situation and health, more economical … By signing up for a new home loan insurance contract with another insurance company, you have a lot to gain. Here’s how.
1. Compare Home Loan Insurance
Before proceeding with the selection of a new insurance company, Remember that Price shouldn’t be your only criterion. It is also necessary to take into account the extent of the guarantees provided. And for good reason, your bank’s acceptance of this termination is a sine qua non: your new contract must offer the same level of guarantee as your old contract.
to do this, you can Rely on the consolidated information sheet (FSI) detailing the criteria used and the minimum collateral required by the bank to secure your mortgage. That last one was for you Discount from the first simulation of your balance. If not, feel free to turn to your bank to pick it up. It will serve as a basis for comparing the different proposals.
Other criteria to take into account : Warranty exceptions, but also the quality of customer service. Also, beware of contracts whose premiums can be reconsidered, which can lead to unpleasant surprises.
to simplify your life, Use a home loan insurance comparison such as Magnolia. It may be useful Since you will receive personalized offers based on your profile with just a few clicks.
Once you are selected, You will have to start preparing your file.
2. Prepare your file with all the documents required to be provided
The borrower lock change file is slightly different Whom to prepare when applying for a mortgage.
Even if each insurance company has its own terms and conditions, here are the main documents to provide :
- A copy of your identity document: a valid national identity card or passport.
- SEPA Direct Debit Authorization.
- A copy of the loan offer: The new insurance company will know the amount, term, and price of the loan.
- Dated amortization schedule: This way, the new insurer will be able to know your position in repaying your loan and determine monthly payments as accurately as possible based on the principal you haven’t paid yet.
- health questionnaire (If you don’t meet the new criteria that allows you to avoid it: Consisting of 14 simple questions, this form allows your new insurer to assess your health and see your “risk” score in terms of reimbursement. Your personal and family history (cancer, diabetes, genetic diseases, downtime, etc.), as well as your possible current treatments should be detailed.
- A copy of the FSI (Standard Information Sheet): You must have received during your first loan simulation. It shows the new insurer all the warranties and insurance terms of your bank so that they can offer you equivalent coverage.
3. Termination of the borrower’s insurance with a standard letter
Did you receive your new insurance contract? Iit’s time for Request an authorization from your bank. For this, a registered letter must be sent with acknowledgment of receipt. For the latter, a copy of the proposed new contract will be attached as an alternative.
This is a typical message :
[Nom et Prénom]
[Adresse]
[Code postal et ville]
[Téléphone]
[Nom de l’assureur]
[Adresse]
[Code postal et ville]
to me [Lieu]The [Date]
Reference: Insurance Contract No. [numéro de contrat]
Subject: Request to terminate the borrower’s insurance contract
ladies and gentlemen,
Hereby, and as permitted by the Lemoine Act of February 28, 2022, I am informing you of my desire to terminate my Mortgage Loan Insurance Contract No. [numéro de contrat] Subscribe to your company [date de la signature du contrat de prêt ou de la prise d’effet de l’assurance].
Subject to the terms and conditions of this contract, the termination of this contract shall take effect on [date].
Knowing the basic nature of insurance to cover my mortgage, I chose new borrower insurance with equivalent guarantees. Attached is the Lender’s Agreement with respect to this authorization and ratification of this new contract.
Thank you in advance for confirming that my request has been considered, as well as for the attention paid to my file.
Please accept, madam, sir, an expression of my esteemed sentiments.
Signature
4. Wait for your bank’s response
The bank has no There is no obligation to validate your request to change the borrower’s insuranceIt has every right to object to it if it is justified.
In any case, your mail will not remain ink on paper: The bank has a period of 10 working days to inform you of their decision.
- If you refuse: This decision must be inevitable justify Indication of lost or unqualified information and/or warranties. Your initial insurance contract will not be terminated and will remain in effect until you submit a new application.
- If you agree: The bank will send you an attachment to offer the loan. she goes Recalculate your total effective loan rateThe latter no longer includes the cost of insurance. Note: He is not entitled to adjust the initial loan rate (whether fixed or variable) to make up for any shortfalls or conditions that appear in your offer. It cannot charge an amendment fee, analysis fee, or authorization fee.
A question to ask? problem raised? A whole community at your service…
📆 When can you change a borrower’s insurance?
❓ How do I change insurance during a home loan?
- Compare insurance and offers.
- Complete the file and submit the required supporting documents;
- send an authorization letter to your bank;
- read more
📰 What documents are required to change mortgage loan insurance?
- A copy of the loan offer
- Modern fire table
- health survey
- read more
🤔 Can the bank refuse to terminate my borrower’s insurance?
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