Taking out loan insurance

In France, when I sign a real estate loan agreement, I must take out loan insurance. Choosing this insurance wisely is important: it protects my family and me and increases my chances of keeping the property I acquired should I experience loss of income following disability or incapacity. It also lets me avoid passing on my debt to my children in the event of death.

Keep in mind that insurance represents the second highest cost of my loan.

There are 4 types of loan insurance:

  • Death + total and Irreversible loss of autonomy - DC + PTIA;
  • Temporary total incapacity - ITT;
  • Permanent total incapacity - IPT;
  • Permanent partial incapacity - IPP (this guarantee is often optional).

I have 2 alternatives when it comes to insurance:

  • Take out the loan insurance offered by my bank (group insurance);
  • Choose equivalent insurance coverage with the insurer of my choice (insurance delegation).

The group policy is the same for all insured parties and the choice of guarantees may be very limited. On the other hand, insurance delegation offers individual coverage and many optional benefits.

Insurance confirmation is known as a "certificate of membership." It is sent once this step is completed and is necessary if I hope to obtain a loan offer.

I receive my loan offer

I usually receive the loan offer one month before the final signature. It is sent by registered mail and includes:

  • For fixed-rate real estate loans: a summary with the amount, the duration, the rate, the monthly installment including insurance, the annual percentage rate [APR], as well as a detailed amortization table;
  • For variable-rate loans: rate variation conditions as well as a simulation of the impact of rate variations on monthly installments, the total duration and cost of the loan;
  • The general and specific terms of the offer;
  • General insurance conditions;
  • The surety company's general terms and conditions.

GOOD TO KNOW:
This offer is valid for at least 30 days following receipt.

AdvantageDeliberation period: Once the loan offer is received with the declared pledge and the signed loan insurance, I have 30 days to accept it. However, I have a mandatory 10-day deliberation period and cannot formally accept the offer before day 11.

I accept the loan offer

At this stage, Meilleurtaux helps me review my loan offer so I can sign it under the best conditions. They verify that everything corresponds to what was previously decided. After the 11th day, or after the 10 days of deliberation (under the Scrivener act), I can send the signed and dated loan offer by mail to my credit institution.

I organize my move

I inform the authorities, my social security office, utilities, subscriptions, etc.

Social organizations

I inform the organizations that manage my social security and family benefits, as well as my complementary health insurance company:

  • Family allowances registry
  • Primary health insurance registry;
  • Pension fund;
  • Complementary health insurance companies.

Authorities

  • Tax department;
  • National service bureau (if I am between 16 and 26).

Employment – Work

I inform my employer or, if I am seeking a job, the unemployment bureau.

Bank – Insurance

I give my new contact information to the establishments that hold my bank accounts.
I inform my insurance companies of the move: home insurance, car insurance, life insurance.

Utilities

I inform the companies that manage my utilities and subscriptions, in particular:

  • Power providers (gas, electricity);
  • Water services;
  • Telephone company;
  • Internet operator.

GOOD TO KNOW:
For address changes, banks can sometimes update my information at institutions where I have accounts / utility contracts, etc.

Be careful: a loan offer may be withdrawn if...

  • The acquisition of the accommodation does not take place within 4 months of accepting the loan;
  • I applied for several loans to finance my accommodation and one of them, amounting to at least 10% of the necessary capital, was refused.

In these cases, I have to repay the amounts already collected.

You are committed to reimburse your mortgage Loan. Verify your ability to reimburse before committing.