Loan Insurance: Why Change Borrower Insurance?

Have you heard about the Bourquin law ? Effective for all mortgage insurance contracts since 1 January 2018, new legislative means freedom and savings to all consumers who wish to break the contract of insurance of their mortgages in particular. But why is this good news?

The borrower’s insurance change is now!

Real estate loan insurance rhymes more than ever with freedom. The Bourquin amendment is a continuation of the measures put in place to free the borrower insurance market. Since 2010, the Lagarde law authorizes the setting up of a delegation of insurance. New prospects open up again in 2014 with the Hamon law allowing a cancellation of mortgage insurance within one year after signing. It is finally the amendment Bourquin that comes to concretize this claim of freedom by offering to the borrowers the possibility to change mortgage insurance insurance and this, on each date of birthday!

One way to save money…

One way to save money...

The Bourquin amendment offers greater freedom to borrowers, but also the possibility of considerable savings ! Indeed, by playing with competition and changing insurance, the expected savings can be as high as a quarter of the total cost of loan insurance. A real estate mortgage insurance simulation will allow you to appreciate your future savings.

Increase the level of guarantee

Increase the level of guarantee

Is it as simple as it seems to change mortgage insurer? Defined by the CCSF (Financial Sector Advisory Committee), a list of criteria allows banks to determine whether or not there is an equivalence of collateral between the initial contract and the new contract. If it is a rental investment, the bank will simply require the guarantees Death and Total and irreversible loss of autonomy. On the other hand, in the case of a residential investment, the bank will require not only the Death and Total and Irreversible Loss of Autonomy guarantees but also the Total Temporary Disability and Total Temporary Disability guarantees.

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