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What is the best home loan insurance? – Forbes France

When you borrow to buy a property, the banks also require you to take out mortgage insurance, in order to ensure that the monthly installments are repaid in the event of an unforeseen event. Its cost varies according to the situation and the facility. How, in this case, to find the best?

While interest rates on new mortgages continue to rise (it was between 1.25% and 1.30% in May), borrowing is becoming more complex for many households. The lower rates (it was still 1% last year) will soon be just good memories.

What if it’s really time to buy, before those prices go up any further? Especially since an additional cost is added to the budget for buying a house or apartment: mortgage insurance.

How to find the best mortgage loan insurance

This home loan insurance can account for up to a third of the loan, depending on the profile! But prices vary greatly according to the facilities. Therefore, it is recommended to compare well. In fact, borrowers are no longer required to take out the loan insurance offered by their bank! Regulations allow borrowers to choose their insurance freely and allow them to contact an outside insurance company.

The alternative contracts offered are often two to three times cheaper than the contracts of the bank group. For this purpose, the online comparison makes it possible to find the most advantageous loan insurance according to many criteria. In fact, according to each profile (age, CSP, smoker or not, etc…) the prices vary.

People who are looking for the best home loan insurance can use the comparison, which allows everyone to find the most advantageous offer by comparing contracts of leaders in the loan insurance market. All contracts respect the equivalent of bank guarantees, and therefore offer at least coverage similar to that offered by a bank. saves up to 15,000 euros.

Lemoine’s Law: What’s Changing for Mortgage Insurance

This June will be a landmark in the sector, with the Lemoine Act going into effect on June 1, 2022. And while insurance companies have taken into account the health status of subscribers to mortgage loan insurance, this new law eliminates that medical choice, at least for some. This only concerns home loans under €200,000, which expire before the borrower’s 60th birthday. Since many people borrow over the age of 20, this only affects, in fact, largely people under the age of 40. However, this is very good news for people who have been paying more due to their health condition.

The Lemoine Law Revolution is about non-annual termination: people who sign a mortgage as of June 1, 2022 can change the borrower’s insurance contract at any time, free of charge. So far, the borrower’s insurance has been subject to termination within the first 12 months (Hamon’s Law) or thereafter on the expiration date (Bourquin Amendment).

For loans running on June 1st, you will have to wait until September 1st 2022 to be able to change anytime!

These disruptions are bound to have repercussions on the prices offered. For this reason, it is advisable, more than ever, to compare to find the best mortgage insurance.

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