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Coordination Loic Grasset

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Every borrower now has the option to cancel and change their home loan insurance policy at any time. Who will emerge a winner?

No need to wait for the anniversary of your home loan contract to change your mortgage insurance. Thanks to the Lemoine Act of 28 February, a borrower can terminate without worrying about the age of his contract or the time of year. This right came into effect in two stages: 1 June for those who have taken out a home loan since that date; 1 September for borrowers who took out their loan before 1 June. Clearly, the unit applies to all contracts, new and old.

The new contract must contain corresponding guarantees

However, while the Lemoine Act allows a loan insurance agreement to be terminated at any time without notice and without charge, it always requires the insured to provide his loan organization with a certificate proving that he has taken out new insurance. . Correspondingly, the document must state that the new contract in its general conditions contains guarantees at least equivalent to those offered by the remaining contract. Otherwise, the bank has ten working days to refuse the termination (it must then justify its decision in writing for a legitimate reason).

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Another major advance: the removal of the health questionnaire for borrowers’ insurance for mortgages of less than €200,000 (less than €400,000 for a few borrowers), provided the repayment deadline occurs before the borrower(s)’s 60th birthday. In addition, the reform extends the “right to be forgotten”: former cancer and hepatitis C patients are no longer subject to additional premiums, exclusions from guarantees or even refusal of insurance as soon as they have been cured for at least five years.

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More competition

“In a sector that is still 88% owned by bancassurance companies, the new rules are an immediate and quick solution to preserve the purchasing power of all home owners with mortgages,” says Astrid Cousin, portfolio manager. words from loan insurance comparator Magnolia. Fr. With, ultimately, increased openness to competition, which allows for savings “which, depending on the profile, can vary from €5,000 to €10,000 over the remaining term of the loan”. Faced with this financial challenge, borrowers’ enthusiasm quickly showed. “One week after the start of the full application of the Lemoine law, our brokers registered more than 300% of requests to change insurance”, testifies Astrid Cousin.

Interesting if less than half of the credit has already been repaid

Do the 7 million potentially affected borrowers all have an interest in stepping into the breach? Because if the desire to initiate a termination remains legitimate – remember that borrower insurance makes up on average a third of the total costs of a mortgage loan – several criteria must be met to make the operation profitable. It is necessary to ensure the duration of the remaining credit to be repaid. “The longer it lasts, the bigger the savings,” emphasizes Astrid Fætter, who encourages people in the 25-42 age group to change loaner insurance as soon as possible.

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Those over 50 have no interest in starting a termination

0 “Conversely, those who have passed the age of 50 and who are in the last half or the last third of the repayment of their loan have no interest in starting a cancellation with the penalty of paying additional premiums”, she warns. “Similarly, those who have contracted a pathology (cancer, diabetes, HIV, etc.) since signing the mortgage will also be penalized,” she continues.

Finally, those who, at the time of the cancellation request, still practice a dangerous profession (firefighter, policeman, crane operator, etc.) or regularly practice a risky sport (horse riding, water sports, mountain climbing, etc.) must borrow insurance in full, despite the completion of the medical questionnaire.

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