When taking out a home loan, it is often essential, if not mandatory, to take out borrower insurance. Generally, the latter is taken out at the same time as the credit. Result: we do not really compare the prices of mortgage insurance, and we end up with an offer, sometimes, unsuitable and more expensive than what we could find. This is why contacting a broker specializing in loan insurance could be beneficial for you. How? ‘Or’ What ? We explain this to you.
The advantages of a broker for your mortgage loan insurance
Maybe you don’t know what a broker is. Small definition to fully understand the issue of our article: it is an intermediary between you and the various insurance companies offering contracts of this kind. Moreover, there are brokers for a bit of everything: insurance, mortgage or standard loan, energy… Thus, when you make an appointment with an insurance broker, he will analyze your file and get in touch with the partner insurance. This is also the first advantage of going through such a service: the time saved is considerable. No need to search for the best offer or to make several appointments, the broker does it for you.
The next step is to present to you the different mortgage loan insurance proposals that he has been able to obtain, and this is where the second advantage appears: a much more competitive offer than you could have imagined. ! Indeed, the broker is able to obtain better prices, due to his ability to know the market, but also due to the volume of clients he brings to the insurer. In short, you will have understood that going through a broker for your loan insurance saves you time, but also money.
How to change your borrower insurance?
It is in this context that you can therefore change borrower insurance. As soon as the broker presents you with your offer, you will have to terminate your original contract. For this, you have to be careful: you cannot terminate a mortgage loan insurance contract as you wish. Indeed, you will have to check the anniversary date of the contract:
-If your contract is less than a year old: you can terminate as you wish, just remember to give 15 days’ notice.
-If your contract is over a year old: you will have to wait until the anniversary date before canceling. In addition, a period of 2 months for the notice is necessary. This is why, if you are in this situation, we recommend taking the lead before changing.
However, from 2022 things will change. Thus, for old contracts, it will be possible to no longer wait for this anniversary date, starting on September 1 of the same year. There is no doubt that this will boost competition between insurers even more! Finally, you are required to report this change to your banker (or the lender). Indeed, the latter must validate the equivalences of your borrower insurance contracts.
Anyway, changing borrower insurance means improving your personal savings, while keeping the same level of guarantee. Now all you have to do is get started!