If banks monopolize the mortgage insurance market, a well-informed borrower can gain significant benefits from them. For this, he must conduct his research as soon as possible and use the right research methods … Can we subscribe before committing to a loan
1. Borrower insurance: anticipate the search for insurance
To obtain good mortgage loan insurance , a borrower must imperatively anticipate his research: it is no longer a question of waiting for the proposal of the bank issuing the credit to begin the procedures.
Concretely, as soon as he knows the amount to borrow, the duration, and the rate of the loan offered, he must ask for quotes, whatever the method is chosen… Whether he chooses to call on online comparators or a broker, that he decides to go directly to the agencies of the players in the insurance market …
In this way, even before obtaining the loan offer, the borrower can calmly understand the conditions under which he can be insured: the level of cover, any exclusions, the application of the normal rate or an additional premium. … Or even, consider alternative solutions in the event of refusal (collateral, mortgage, etc.)
2. Develop your negotiation potential
Quantified point: The current economic situation, with its very low-interest rates, “forces” the banks to compensate for their shortfall, by applying margins on insurance premiums of 40% on average.
Good to know: However, an informed borrower can do well: in fact, banks have “alternative” contracts to “group” contracts, able to divide the price of insurance contributions by 2. A young person in good health can even expect up to 70% off.
3. Compare and find the same guarantees
When taking out the loan, the borrower only has to request the Standardized Information Sheet (FSI): intended to facilitate the comparison of offers. It summarizes the main characteristics of insurance. Describes the guarantees and their coverage. , and delivers an estimate of the cost – in particular, by mentioning the TAEA.
The borrower only has to send it to other organizations. To receive a similar or even better proposal. A sine qua non for refusing the insurance of the bank issuing the loan.
4. Sign the best loan insurance proposal
At this point, there are only two alternatives left:
- either: the bank aligns itself and draws up an equivalent offer,
- either: it accepts the delegation of insurance.
In any case, with good anticipation and a careful study of the market. The borrower benefits from an optimal insurance contract!
Good to know: if the competition between several insurers is a tedious and time-consuming operation for the borrower, the latter can request the assistance of a mortgage broker. His address book allows him to exchange directly with competent people, to decide (without an intermediary); his experience makes him immediately turn to the organizations most likely to appreciate his client’s profile.