Between 1eh September and November 28, the online comparator Magnolia.fr registered 80,000 requests to change borrower insurance: “households are looking for savings in a period when their purchasing power is severely limited”, recalls Astrid Cousin, spokesperson for Magnolia.fr.
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An average saving of 10,000 euros
According to the platform, the average saving on the total insurance costs, over the remaining term of the loan, amounts to 10,000 euros per borrower or between 100 and 200 euros per month for a household. For those who have borrowed a large amount, the saving by delegating insurance to an alternative insurance company can be even greater. “Since we have customers with good profiles, we see an average amount of savings of 26,000 euros,” says Eric Maumy, chairman of the April group.
And it’s not just low-income borrowers who can make full use of underwriting delegation; also the youngest: “For those under 35, insurance costs are at least halved, because they are the ones who pay the most, as they borrow over long periods, with a matured capital still very high”, explains Christophe Vanhuyse, director of borrower insurance development at Swisslife Assurance et Patrimoine.
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Termination at any time
Since 1eh In particular, the Lemoine Act allows borrowers to change credit insurance at any time (infra-annual termination). It also removed the health questionnaire for loans under €200,000. If the banks have not changed their prices for loans under 200,000 euros, the insurance companies have therefore had to raise their price lists by 20 to 30%, as they no longer have the opportunity to assess the risks associated with the state of health of the borrower”, emphasizes Christophe Vanhuyse.
For borrowers, beware of the threshold effect: it is sometimes better to borrow a little more, within a few thousand euros, thus reducing the cost of borrower insurance.
According to calculations by the broker Meilleurtaux, a 33-year-old married couple had borrowed 300,000 euros over 25 years in November 2020 with a credit rate of 1.30% and an insurance rate of 0.30%. The insurance covered 100% of the large salary and 50% of the second. The monthly cost of the insurance amounted to 112.50 euros on the borrowed capital, or an amount of 31,050 euros over the remaining 23 years.
By renegotiating their insurance, these borrowers can either lower their premiums or get better coverage for less. If they renegotiate under the same conditions, the amount can drop to 0.15% of the outstanding capital (ie 289,777 euros), that is, a monthly premium of 56 euros and a total saving of 15,594 euros. But they can also increase their coverage (100% on each salary) to 0.15% also on the outstanding capital (i.e. 289,777 euros), i.e. a monthly cost of 72 euros and a saving of 11,178 euros, while being better protected. .
Go below the threshold of usury
For those who have a real estate project and want to borrow now, it is time to compare before the next increase in the wear rate at the beginning of January: the wear rate including insurance costs, it is better than these- These are as low as possible to optimize the chances of getting your mortgage loan.
For those who have already repaid their loans, beware of the parade launched by certain banks: they sometimes ask, although the law does not prescribe it, that the costs over 8 years appear on the insurance certificate, whereas the legislator only specifies that this amount must only be mentioned in the pre-contractual documents and the standardized information form.