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Saving Money by Changing Loan Insurance

 

Interest rates for real estate loans are low. But to achieve a beautiful operation, you must also obtain a good loan insurance rate. If the contract is already underway, the law Bourquin will allow to change insurance each year.

Interest rates for real estate loans are low. But to achieve a beautiful operation, you must also obtain a good loan insurance rate. If the contract is already underway, the law Bourquin will allow to change insurance each year.

Property loans are popular

Property loans are popular

The situation is favorable to the mortgage. After an exceptional year 2016 for the interest rates of real estate financing, the current year is a continuation of continuity. Even if last year, the rates seem to have reached a floor level with an average of 1.30% in November, 2017 was synonymous with slight increase. In fact, during the summer, the average was 1.55% for all durations combined. According to some real estate loan brokers, the fall of 2017 saw a further decline in rates. Buying a principal residence or financing the purchase of a property for rent is more than ever attractive. Borrowing capital for a real estate project is still interesting. Even though real estate prices are rising sharply in the main agglomerations of the Hexagon, goods from rural areas are still available for sale at competitive prices.

Nevertheless, when looking for home loan, many borrowers tend to focus solely on the interest rate set. Of course it is crucial to compare several offers, but you must also make sure that you have a good loan insurance rate. This insurance will replace the borrower in case of disability or death of the latter. The total amount of the borrower’s insurance is determined based on the rate contracted and the guarantees required by the lender.

Reduce the cost of its insurance borrower with the law Bourquin

money cost

In addition, loan insurance is often offered by the bank. However, there are new players on the market who are ready to offer attractive offers. Between-group and alternative contracts, the rate can vary from simple to more than double.

Choosing alternative insurance to that of banks is possible before signing the loan offer. Once a loan is contracted, it is also possible to leave a contract for another offering at least equivalent coverage. This provision may apply in the first 12 months following the signature of the loan. With the Bourquin law, the annual cancellation of the loan insurance was born in French law. It is a question of being able to cancel a contract with a bank or a company for another contract and this on each anniversary date of the contract. Initially restricted to contracts signed after 1 March 2017, the provisions of the amendment Bourquin will apply retroactively to all loan insurance from January 1, 2018. Borrowers will then be able to achieve great savings especially if their home loan is relatively young.