Understanding and negotiating your mortgage insurance
The basic guarantees of mortgage loan insurance
When you take out a mortgage, it is important to take out borrower insurance to protect yourself against the risks associated with the repayment of the credit. Mortgage insurance covers different risks depending on the guarantees subscribed. The basic guarantees are death, total and irreversible loss of autonomy (PTIA), total permanent disability (IPT) and temporary total incapacity (ITT).
In the event of death or PTIA, the insurer reimburses the lender the outstanding capital. In case of ITT or IPT, the insurer takes care of the monthly payments of the mortgage for a defined period. The IPT is triggered if the borrower loses the use of his entire body or a limb. The ITT, on the other hand, intervenes if the borrower can no longer exercise his profession temporarily. In the event of permanent partial incapacity (PPI), the insurer pays compensation proportional to the severity of the disability.
Optional guarantees
In addition to the basic guarantees, it is possible to take out optional guarantees to strengthen its coverage in case of accident or illness. Among these optional guarantees, we can mention the partial permanent disability guarantee (PPI), which covers part of the monthly payments of the loan in case of partial and permanent disability of the borrower.
Job loss coverage can also be taken out to protect against the risk of unemployment. It makes it possible to cover all or part of the monthly payments of the mortgage in the event of economic dismissal or end of fixed-term contract. Finally, the temporary partial disability guarantee (ITP) makes it possible to maintain a sufficient level of income in the event of temporary partial incapacity. It covers part of the monthly payments of the loan during the period of incapacity.
It is important to note that these optional guarantees have an additional cost that is added to that of basic home loan insurance. It is therefore advisable to carefully assess your needs and budget before subscribing to these optional guarantees.
Why use a real estate financing broker?
The real estate financing broker is an expert in real estate credit and borrower insurance. He can help you find the best mortgage insurance according to your profile and your real estate project. He can also negotiate the terms of your contract and offer you the most advantageous offers.
How to negotiate your mortgage insurance?
To negotiate your mortgage insurance, it is important to compare the offers offered by different insurers and to learn about the guarantees offered. You can also play the competition by using a borrower insurance broker. The latter will be able to negotiate the conditions of your contract and offer you the offers best suited to your profile.
To negotiate concretely, you can use several levers, including the duration of the loan, the amount of monthly payments, the interest rate or the amount of guarantees. You can ask the insurer to modulate the amount of coverage according to your real needs.
For example, if you already have supplementary health insurance, you can opt for mortgage insurance with lower guarantees.
It is also possible to negotiate the terms of your mortgage insurance contract with your bank. To do this, you can contact your bank advisor and ask him to offer you more advantageous offers. You can negotiate interest rates, application fees, or prepayment penalties.
Posted on 22/02/2023 by
Cyril POTTIER
Entrepreneur and founder of the agency GABRIEL FRANCE, my career began in the field of accounting, but my passion for real estate led me to this captivating adventure. With GABRIEL FRANCE, we bring our expertise to every stage of real estate, from purchase to sale, including rental management. Through each transaction, our goal is simple: to ensure your satisfaction.
