The Lagarde Law now allows competition in terms of borrower insurance. You can thus save several thousand dollars on your mortgage by declining the insurance offer offered by your banker and by choosing more economical insurance conditions.
It also allows you to compare mortgage loan insurance contracts before taking out the loan. The bank does not have the right to review the real estate rate if you choose another insurance offer than its own.
The only rule to respect is to present a contract having the same guarantees as the group contract.
The free choice of loan insurance
Very often, you will save a lot of money by asserting this right with your banker. Bringing competition into play between the various borrower insurance contracts is all the most important since even a small difference in insurance premium becomes significant when the duration of the mortgage reaches 15, 20 or even 25 years.
First step, after having established a written credit simulation
including the insurance offer from the bank lending you the funds, you will need to compare prices and compete. At this stage, the Lite Lenders brokers are privileged contacts who can guide you on the most advantageous and most suitable formulas for your particular case. With equivalent guarantees, you can thus assess the cost of the various insurance contracts.
As a general rule, you should choose the widest coverage
integrating disability and sick leave. In addition to the guarantees offered (death / total and irreversible loss of autonomy, work stoppage or total permanent disability, or even unemployment), it is also advisable to check the exclusions. This list is often long and arduous, but it is better to study it carefully. There are the “general” exclusions (linked to the risks of suicide, war, etc.), and also the limitations of guarantees: as for example, in a large number of contracts, limitations or exclusions of the sick leave guarantee. (especially in case of nervous breakdown). Also check: the compensation method offered by the contract in the event of work stoppage (income maintenance or payment of monthly payments). In addition, it is also necessary to be attentive to the periods of deductible which can vary from one contract to another.
If non-bank insurance is more advantageous
you will have to inform your banker of your desire to take out his loan without the associated insurance. If he finds the equivalence of the guarantees, he cannot refuse you this choice and the law provides that he can not reverse the credit rate granted either. It will then suffice to take out the proposed insurance contract and deliver the subscription certificate to your lending institution before the final loan offer is published.