When you borrow to buy a property, banks require that you also take out mortgage insurance, in order to guarantee repayment of the monthly installments in the event of the unexpected. Its cost varies according to the situation and the establishments. How, in this case, to find the best?
As interest rates on new mortgages continue to rise (they were between 1.25% and 1.30% in May), borrowing becomes more complicated for many families. Low rates (they were still 1% last year) will soon be just good memories.
What if it really is time to buy, before these rates increase further? Especially since an additional cost is added to the budget for the purchase of a house or an apartment: mortgage insurance.
How To Find The Best Mortgage Loan Insurance
This home loan insurance can account for up to one third of the loan, depending on the profile! But the prices vary greatly between establishments. Therefore, it is advisable to compare well. In fact, borrowers are no longer required to take out loan insurance offered by their bank! The regulations allow borrowers to freely choose their insurance and allow them to contact an external insurer.
Alternative contracts offered are often two to three times cheaper than banking group contracts. For this, an online comparator allows you to find the most advantageous Loan Insurance according to many criteria. In fact, according to the profile of each (age, CSP, smoker or not, etc …) the prices vary.
People looking for the best home mortgage insurance can use the Magnolia.fr comparator, which allows everyone to find the most advantageous offer by comparing the contracts of the leaders in the loan insurance market. All contracts respect the equivalence of bank guarantees and therefore offer coverage at least identical to that offered by the bank. Magnolia.fr saves up to 15,000 euros.
Lemonine Law: What Changes for Mortgage Insurance
This June will be a milestone in the industry, with the entry into force of the Lemoine law on June 1, 2022. While insurers took into account the health status of mortgage insurance underwriters, this new law removes this medical selection. , at least for some. These are only mortgages of less than € 200,000, which expire before the borrower’s 60th birthday. Since many people borrow more than 20 years, this only affects people under the age of 40 to a large extent. However, this is great news for people who were paying more because of their health.
The revolution of the Lemoine Law concerns the inter-annual resolution: those who subscribe a mortgage from 1 June 2022 can now change the borrower’s insurance contract at any time and free of charge. Until now, the borrower’s insurance was revocable within the first 12 months (Hamon law) or after the maturity date (Bourquin amendment).
For loans in progress on June 1st, you will have to wait until September 1st 2022 to be able to change at any time!
These upheavals are bound to have repercussions on the prices offered. For this reason, more than ever, it is advisable to compare yourself to find the best insurance for a mortgage.