A mortgage life insurance revolution
The French Senate ratifies the termination of your mortgage life insurance at any time and the deletion of the medical questionnaire.
The voted text includes three major changes.
The first consists of authorizing any insured person to terminate their mortgage life insurance contract at any time and free of charge. Until now, it was only possible before the first anniversary of the mortgage (and at anniversary date afterward for the remaining duration of the mortgage).
The other two changes took everyone by surprise.
The abolition of the health questionnaire for loans of less than 200 000 Euros and for clients whose loan will end before their sixtieth birthday.
To avoid any abuse, an amendment specifying that the amount of 200 000 Euros applies per insured client and to the outstanding amount of all credit contracts.
Lastly, the time limit for benefiting from the “right to be forgotten” has been reduced from 10 to 5 years for former cancer or hepatitis C patients.
A quick adaptation from insurers and banks is required since it is expected that the provisions voted will come into force on June 1st for new contracts and September 1st for current contracts.
One thing is certain, it is difficult to identify all the concrete consequences linked to the impossibility by the insurer to carry out medical selection but the risk of seeing insurance rates increase is real.
Current mortgage rates for March 2022
|Fixed rate(1)||Term||Monthly repayment
for 10 000€ borrowed
|1.25%||10 years / 120 months||88.69€|
|1.30%||15 years / 180 months||61.18€|
|1.60%||20 years / 240 months||48.72€|
|2.05%||25 years / 300 months||42.63€|
(1) The indicated rates are given for information purposes and are based on the latest bank rates of one or more of our partners. The rates in the table above do not include the ancillary cost as notary fees, guarantees, insurance and intermediation.
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