Mortgage Credit: Punishing Low Income Families -

Borrower insurance: Termination to be extended anytime soon to all contracts –

Borrower insurance

Since June 1, it has been possible for any new borrower to terminate their loan insurance contract at any time, without fees or penalties. With respect to existing contracts, this major measure of the Lemoine Act will apply from September 1, 2022.

Jusqu’ici, les emprunteurs ne pouvaient résilier leur contrat d’assurance de prêt que dans deux cas : soit dans les 12 mois suivant la signature de l’offre de prêt, soit chaque année à la date d’annivers de l’signature ‘View loan.’

To allow borrowers to take advantage of a more advantageous offer at any time, several amendments have been made regarding mortgage loan insurance: the Hamon Act in 2014 and the Borken Act in 2017. The Lemoine Act was adopted last February. The right to terminate the borrower’s insurance at any time, without costs or penalties .

This change applies from June 1 to new contracts, and will be extended to all existing home loans from September 1.

I insure my loan at the best rate

Possible change of equivalent guarantees

Although borrowers now have the option to choose another insurance contract when they wish, this new contract is obligated to meet a Condition: at least “equivalent guarantees” It should obviously cover the same situations (death, disability, loss of autonomy, etc.) as the initial contract.

To make the change, all you have to do is mail your request to your bank, which has 10 days to respond. be careful, The bank has the right to refuse to approve the request. In the event of a refusal, it must justify a legitimate reason (unequal guarantees, for example).

What has already changed

The February 28 law not only simplifies the terms of termination of the borrower’s insurance. It also contributes to facilitating access to mortgage credit for people with a medical history in particular.

Since March 1, the right to be forgotten has been reduced from 10 years to 5 years for people who have suffered from certain diseases (hepatitis C, cancer, etc.). On June 1, it was the end of the health survey under certain conditions.

Concretely, the insurance company is now prohibited from requesting information regarding the borrower’s health status, if the amount of his credit does not exceed €200,000 and if the credit expiration date is set before the borrower’s 60th birthday.

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