In this period of low real estate rates, the share of borrower insurance in the cost of a mortgage is more and more important. It can exceed half of the total amount. It will therefore be essential to negotiate the rate of your home loan insurance. This is made possible by the possibility of doing what is called a “delegation of insurance”.
It is a question of ensuring this credit by another insurance than that proposed by the bank which finances. Different laws allow insurers to compete:
When taking out a mortgage
In the 1st year of the borrower insurance contract by Opal Finance every year on the anniversary date of the credit insurance contract. Find all the necessary information and our advice on home loan insurance.
Compare loan insurances
Home loan guarantee In addition to borrower insurance which protects against the risk of non-repayment on certain specific cases, it is also necessary to take out a mortgage loan guarantee.
This allows the bank to be sure of being reimbursed for the money it loaned to you. There are different types of credit guarantees. Here are the main solutions: The deposit (60.1% of the outstanding amount): it can be different types of deposit: * Mutual guarantee: either by a credit institution (33.6%), or by an insurance organization (26.5%).
The personal deposit: another person with sufficient resources (assets or salary) is responsible for reimbursing on your behalf in the event of breach of your obligations. There is the pledging of life insurance or other investment vehicles.
Mortgage
The bank takes what is called a mortgage on your house or apartment for protection. This allows him to be able to sell it in the event of non-repayment of your credit in order to recover his money.
The privilege of lender of money:
It is another solution of real guarantees after the mortgage, but it is not very common. When they can, borrowers tend to favor a bond. It only turns to other solutions in the event of a refusal or other mutual guarantee companies.
Application fees (and brokerage fees)
In addition, most companies charge an application fee for the installation. It costs several hundred euros. These are administrative costs for setting up your financing and managing it. This type of fee is negotiable like many other elements. They can vary quite considerably from one establishment to another. In addition, if you choose to go through a broker to help you find the best solution, you may have to pay brokerage fees which correspond to the fees of that intermediary.