Since January 1, 2018, borrowers can switch their mortgage loan insurance at any time, even years after signing the loan.
Mortgage loan insurance often adds substantial costs to your home loan. By switching to a more affordable policy from an external insurer, many borrowers achieve significant savings through personalized coverage. Here's how to make the switch effectively.
Insurance premiums can account for a large portion of your total mortgage costs. Renegotiating allows access to broader coverage or lower rates. By comparing options, borrowers frequently save thousands over the loan term.
When obtaining a mortgage, you can choose between the bank's group insurance or an individual policy from another provider. Many opt for the bank's offering due to convenience, but group contracts use uniform pricing and risk pooling, which isn't always optimal. Individual policies provide tailored rates and guarantees matched to your specific needs.
Under the Hamon Law, you can change your insurance within one year of signing, provided the new policy offers equivalent guarantees. Start by using an online comparator to find a better deal. Verify equivalence, then get bank approval. If approved, subscribe to the new policy and send a termination notice via registered mail with acknowledgment of receipt—at least 15 days before the first anniversary of your current contract.
For changes after one year, seek a policy suited to your profile with equivalent or better guarantees. Submit it to your lender for approval. If accepted, send a termination letter with the new policy details via registered mail—at least two months before your contract's anniversary date.
Need personalized guidance for delegating insurance? A broker acts as your intermediary, leveraging a vast network of banks and insurers to secure tailored contracts. They handle all paperwork, often saving clients thousands compared to group policies—freeing up your time and money.
Before engaging a broker, use an online comparator for market insights. Fill out a simple form to get free quotes. Remember, evaluate not just premiums and rates, but also deductibles, waiting periods, coverage details, and exclusions.
