While the mortgage rate stops falling today and the real estate market is slowly recovering, the trend among banking establishments is to tighten the terms of loan agreements. But that does not in any way slow down the influx of files. There is always time to borrow or save money by playing loan insurance.
Aim for the economy: change loan insurance
Although the 10-year OAT rates have recently risen, mortgage rates remain at a historically low level. The French are inclined to concretize their projects by submitting their financing request or by undertaking a renegotiation of credit or a loan repurchase.
However, given that banking organizations and credit organizations receive a very large number of requests, the processing times for files, and therefore for signing credit contracts, have greatly increased, and for certain organizations up to double.
But all this time allows you to serenely look into loan insurance in order to achieve maximum savings. The share of this insurance in the cost of a loan can reach 40% since low rates have led to a drop in interest. By taking advantage of the new reforms, borrowers have everything to gain!
Legislation that favors the borrower
The role of loan insurance is to guarantee the repayment of a loan, according to the terms fixed in the contract, when the borrower finds himself in financial difficulty due to a situation of incapacity for work, disability. , death or job loss.
Before the Lagarde law of September 2010, this loan guarantee was systematically contracted with the financial institution granting the credit. But since this law, borrowers can freely choose their insurer on the condition of choosing a contract comprising a level of guarantee at least equivalent to that of the group insurance contract offered by the lender. In 2014, the Hamon law came to strengthen the legislation in favor of the consumer: the borrower can now change the loan insurance contract during the first year of the credit’s life. Finally, recently, a list of criteria has been introduced intended to make it easier to compare insurance offers for consumers, as well as case law which grants the right to terminate at annual maturity. The context is therefore ideal for any indebted owner wishing to reduce the cost of his loan,