The debate is advancing for the infra-annual termination of loan insurance. The Minister of the Economy Bruno Le Maire said he was in favor of making it possible to change borrower insurance at any time during the contract, while a bill must be discussed Thursday in the National Assembly on this subject. .
Good news for borrowers
Mortgage loan insurance covers various risks such as death, illness, or disability, protecting both borrowers and banks against a possible default. And it can cost more than interest on the loan depending on the borrower’s profile.
This information is unknown to borrowers who have yet the right to choose individual insurance – under the Lagarde law before taking out the loan (2010), the Hamon law during the first year of the loan (2014), and finally the Bourquin amendment every year before the anniversary date (2018).
Bercy has estimated the gain that would result from the infra-annual termination of an insurance contract. For a first-time buyer who borrowed 250,000 euros at age 35 to buy his first home, the measure could save him nearly 4,000 euros over the term of his loan over 25 years.
This measure is going in the right direction,” said Maël Bernier, spokesperson for the broker Meilleurtaux.com. “We can consider that on average this allows 15,000 euros in savings over the duration of a loan, or even more if you have a loan of more than 350,000 euros, which is the case for many borrowers”, continues- she.
For his part, the president of the French Banking Federation, Nicolas Théry believes that “this proposal for the Americanization of creditor insurance is highly contested. It will lead to discrimination between the fifties and the most vulnerable in favor of the youngest profiles and in good health. It is a demutualization of the risks which will weigh heavily on solidarity between the generations. That is why we are very opposed to this measure which is a form of absolute individualization of insurance. ”
Health questionnaires at the heart of discussions
Bruno Le Maire also said he was in favor of another measure provided for in this bill, which provides for “the opening of work with banks and insurers on discrimination in access to borrower insurance when we have been sick”.