Are there any fees for delegating mortgage insurance?

What is loan insurance delegation?

Loan insurance delegation allows borrowers to choose a different type of insurance from the one offered by the bankoffering greater competition and choice. This option was made possible by the Lagarde law of 2010, which allows borrowers to freely choose their insurer. Three other laws – the Hamon Act, the Bourquin Act and the Lemoine Act – have strengthened borrowers’ right to change insurance during the course of their loan.

Costs associated with loan insurance delegation

There are no specific fees imposed by the bank for the delegation of mortgage loan insurance. Banks are prohibited by law from charging additional fees. or change their interest rate as a result of this delegation. However, there may be general costs associated with setting up the new insurance contract with the chosen insurer or broker, such as :

• Administrative costs Most insurance companies charge administration fees, usually around €20 per borrower or per policy.
• Contributions to a policyholder association Some companies have a policyholder association and charge annual membership fees, ranging from €7 to €10 on average.

Compare offers and negotiate costs

One of the main advantages of delegating your insurance is that you can compare different offers and choose the most advantageous in terms of price. Visit insurance companies can facilitate this process by helping borrowers find the insurance best suited to their needs, while ensuring that equivalent guarantees are met.

Some of these charges can be negotiated or even waived with the chosen insurer. A mortgage broker can also help to find the best conditions and rates for the borrower.

Delegating your insurance in just a few steps

1. Compare offers from external insurers when the bank offers a mortgage.
2. Find a contract with an insurer offering the same guarantees as the one proposed by the bank.
3. Send this contract to the bank, which must reply within 10 days. to validate the contract if it complies with the principles of equivalence of guarantees.

Tips to avoid unjustified costs

It’s important to be vigilant when it comes to any fees that banks may try to apply when changing your mortgage insurance. Here are a few tips to help you avoid such situations:

• Check the clauses of your initial contract regarding insurance delegation and cancellation conditions.
• Don’t hesitate to enlist the help of an insurance broker or agent. to help you through the process.
• Stay informed about your rights regarding insurance delegation and cancellation thanks to the various laws in force.

Loan insurance delegation is an interesting opportunity for borrowers wishing to compare and choose the best insurance offer. With careful consideration and the support of experts in the sector, it is possible to make this change without additional or unjustified costs, and thus optimize the overall cost of your mortgage.