When you have a home loan, you necessarily have insurance that covers it, it’s mandatory, your bank will not lend you money without insurance protecting it …. and protecting you in the event of an accident or death. This insurance is paid monthly for the duration of the loan and is calculated as a percentage of the remaining capital due. That is to say, the more you have repaid, the less it weighs heavily in the monthly payment.
Potential savings
It is estimated that the insurance of a loan weighs between 25% and 33% of the cost of the loan. If I take an average range on a loan of 200,000 euros over 20 years, we are still talking about the sum of 60 euros per month just to secure the loan. In total, you will therefore pay 14,400 euros just for the insurance. If you find 20% cheaper, we arrive at nearly 3000 euros in savings. The average is 10,000 euros of insurance on a loan..
Manual
The first thing to do: look at how much you pay and to whom you pay. Most of the time your bank has integrated the insurance contract into your loan offer (80%). From there, your contract in hand, you can request a mortgage insurance company or go through a comparator. You have the big players in the market such as Meilleurtaux.fr, Lesfurets.com and Cafpi.fr.
The bank, a key interlocutor
Send it to your bank so that it confirms that the guarantees are indeed similar and that it accepts the change. As soon as you have the answer (2 weeks maximum), you can take out the new insurance and cancel the old one.
Particular interest in recent loans
It’s better to be in the first half, that’s true. There is another parameter: no need to declare cancer if you have been cured for more than 5 years (compared to 10 before) so if you had taken out insurance while you were sick and it was where you had it Been over 5 years ago it can really be worth the cost. In any case, if this subject interests you, I recommend that you read the Obs, which today publishes a large file on real estate: prices by region, interest rates, energy renovation…it’s very complete, and in addition it is in partnership with France Bleu!
Do you know a way to save money, or earn more money? Contact Valère Corréard.