Before committing to twenty years to repay the loan used to finance your new home, it is better to have reviewed all the conditions of the contract. At the top of the list, special attention must be paid to the borrower insurance inevitably offered by the bank. Remember that this essential protection reaches on average 30% of the total cost of a mortgage.
To lower the bill, it makes sense to compare market offers and to resort to insurance delegation, in other words to take out this coverage with a service provider outside the lending bank. In practice, however, this is not won.
A complete ignorance of the subject
According to a survey carried out in April 2021 by UFC-Que Choisir among a thousand borrowers, 8 out of 10 respondents say they do not know the cost of their borrower insurance, knowing that 82% of participants are covered by the group offer from their bank. However, the latter is often more expensive than the individual insurance products marketed by alternative insurers. Worse, 35% of those questioned are unaware that they have the right to choose independent insurance protection when signing the loan or during the contract, and 77% do not know when this delegation can be done.
But is it really surprising when 60% of respondents cite their banker as the primary source of information on the matter? While the majority of survey participants do not know what savings they can achieve by changing borrower insurance, remember that on average, they can reach 4,000 euros.