Friday, January 12, 2018, the Constitutional Council has validated the possibility of realizing an annual renegotiation of mortgage loan insurance, thus giving the banks the blame, who wanted to keep their hands on this market very promising for them.
This allows borrowers to terminate their credit insurance contract annually and replace it with another one of their choices with an insurer outside the lender.
Annual termination mortgage loan insurance: a reminder of the situation
The banks wanted to prevent the provision of the amendment Bourquin, the law Sapin 2, which provided for the entry into force of the annual right of cancellation insurance mortgage loan for January 1, 2018. They had thus seized the Constitutional Council, and it was necessary therefore wait for a decision to be rendered by January 12, 2018.
And this measure has just been confirmed by the Council of Wise Men. Thus, the borrowers can, if they wish, carry out an annual cancellation insurance real estate loan at the annual expiry of the contract, which corresponds to its anniversary date of subscription, and set up a new contract in order to pay less and save money on their credit or benefit from better guarantees.
For banks, real estate borrower insurance is a real financial windfall, with significant margins.
That is why they had seized the Constitutional Council in the hope of not allowing this possibility to be, by invoking a destabilization of the market because of a questioning of the principle of mutualization of risks and tariffs.
It should be noted that they still hold 85% of the market share, and have also started to offer individual loan insurance, in addition to their group insurance contract, which is standard group insurance.
Annual Term Loan Insurance Loan: The Way to Save Thousands of Euros
The Lagarde law allows you to proceed with a delegation of insurance, that is to say, to choose freely your loan insurance at the time of the subscription of the mortgage.
If you have not had the time to use this right, or have feared that the bank will slow down the release of funds, because of your desire to delegate your insurance borrower, then you can use the right offered by the Hamon law, which is to replace your insurance contract during the first 12 months of repayment of the credit.
And now, if this period is exceeded, with the Bourquin amendment of the law Sapin 2, you can decide to make an annual cancellation insurance loan real estate at the time of the anniversary date of subscription of your mortgage loan.
This is a great step forward for borrowers to go looking for another insurer to save as much money as possible on their loan. Some borrowers can save up to 20,000 euros on the overall cost of their home loan.