The termination of mortgage insurance is possible by respecting some criteria. In fact, the various successive laws have facilitated its change and allow the realization of savings for the borrower
Although more than 85% of French people have taken out a group insurance contract at the bank in which they obtained their loan, “individual insurance” contracts have many advantages. Indeed, they stick perfectly to the borrower profile, unlike a group contract that calculates an average and costs about 25% more expensive. Long confined to having to keep the same insurance throughout the credit, it is now possible to change.
When do you have to cancel the insurance of a mortgage?
Termination of loan insurance the first year
During the first year of the mortgage, it is possible thanks to the Hamon law, to terminate his group contract at any time. That is to say that during the first 12 months of the life of the contract from the date of signature of the loan offer you can change insurance as you wish. It is nevertheless necessary that this cancellation be done at the latest 15 days before the end of the 12 months of the life of the contract by registered letter with acknowledgment of receipt.
Annual termination of mortgage insurance
To terminate his group contract on each anniversary date, regardless of the subscription year of the mortgage agreement. The anniversary date of the home loan generally corresponds to the date of signature of the loan offer. Nevertheless, it is necessary to refer to the general conditions of the group contract because it is possible to meet other rules than the date of signature of the loan offer (date of signature of the offer of the insurance, the certificate insurance on 1 January of each year or the anniversary date of 1 sample). It is also important to respect the 2 months notice before each anniversary date for the sending of the cancellation request (the cancellation period runs from the date appearing on the postmark).
Savings for borrowers through the termination of mortgage insurance
Example savings per 100,000 € to be reinsured at the rate of 1% over 10 years and 1.5% over 20 years.
How to terminate mortgage insurance?
To cancel mortgage insurance, you must submit to your lending institution an insurance contract offering at least a level of guarantees equal to the previous contract.
To estimate the rate of your mortgage insurance, our comparator of insurance of loan accompanies you.
Why terminate your loan insurance contract
- In case of change of professional situation, professional status or abandonment of dangerous occupation
- In case of improvement or stabilization of the medical situation of the insured since the subscription of the contract to revise the contracts containing exclusions or surcharges
- To add options or guarantees to the contract at a lower cost