Came into force on 1 January 2018, the amendment allows Bankier terminate its mortgage insurance on each anniversary date to change. This gives the borrower the opportunity to do a market research and find the most competitive offer according to his case.
But is it always a good idea to change mortgage insurance from time to time? Most establishments are now ready to negotiate rates with their customers to avoid too many departures. Here are some keys to take advantage of the counterproposal system.
What the new law says
Whereas before the Hamon law specified that it was impossible to change credit insurance once the first year of contract, the amendment Bankier has changed things and favors the consumer: since the beginning of the year 2018, it is possible for individuals who have taken out a mortgage for more than 12 months to change their loan insurance on each anniversary date.
However, two months notice must be given. These changes are possible each year as long as the credit continues to be repaid. The guarantees of the new borrower insurance contract must be better or equal to those of the previous one.
An advantage for the borrower
This novelty makes it possible to compete with the holder of a home loan insurance contract and to rebalance this market since the banking institutions that concentrate the vast majority of loan insurance contracts will do everything to ensure that their clients do not go elsewhere.
According to Le Figaro, they have already recorded a loss of about 300 million euros between January and April 2018. This amendment therefore favors other insurance organizations that often offer cheaper contracts and will result in lowering prices: in order not to lose one by one each of its customers, a bank will be eager to make a counter-proposal more interesting than the offer they want to turn to. These counter-proposals – if they are interesting – avoid taking steps to change the borrower insurance contract.