Loan Insurance: The Constitutional Council validates the annual termination
This is good news for all borrowers!
The Constitutional Council has just made its decision on the annual termination of the mortgage insurance. Annual termination for old contracts is deemed to be in accordance with the constitution.
All Borrowers Can Now Change Borrower Insurance on Anniversary Date
Each year, borrowers will be able to change mortgage insurance thanks to the amendment. This measure applies to new contracts but also to old contracts.
To cancel the credit insurance, it will be necessary to respect the principle of equivalence of guarantee and notify its insurance at most 2 months before the anniversary date of the insurance contract. Be careful, this date is different from the anniversary date of the credit.
A measure that was debating
The subject had been debated for a few months. And it is a victory for the purchasing power of households. Indeed, mortgage insurance is a significant cost in a mortgage.
Depending on the state of health of the borrower it represents several thousand euros over the entire duration of the credit. For this, do not hesitate to put the insurance in competition and choose the most suitable offer in terms of tariffs but also in terms of money back guarantees.
The key dates of the annual termination of the mortgage insurance
February 22, 2017: Effective date of the amendment for new home loan insurance contracts.
October 12, 2017: seizure of the Constitutional Council by a priority issue of constitutionality by the French Banking Federation (FBF) on the issue of stocks.
January 1, 2018: date from which the old insurance contracts may be terminated on the anniversary date.
January 12, 2018: the Constitutional Council validates the annual cancellation for the old contracts.