Too often we don’t have the reflex to ask for a renegotiation of the different investments we make. And this is especially true of mortgages and the accompanying loan insurance. However, a restructuring accompanied by a negotiation can allow you to get the most out of your investment, and allow for other expenses thanks to the released financial capacity. Here is the strategy to follow.
Watch the market and choose the right time
When you hire a real estate loanand more so when one is young, it is likely that the lack of financial strength at the time of signing imposed certain unfavorable conditions : high rate, insurance more or less imposed on the conditions of the lender or even long-term. Over the years, the evolution of your personal situation can allow you to negotiate much more to your advantage. It is possible to reduce the term of the loan, change the monthly payments, renegotiate the rate, or even modify (or even modify) the loan insurance.
To find the ideal option regarding the loan modificationthe best solution is to seek advice aa running Man who knows perfectly the rates practiced as well as the particular conditions of modification. An analysis will allow you to get the best out of it arbitration possible and appoint your advisor to manage the file. But tell yourself that a reduction of just 0.5% in the rate can make a big difference in terms of monthly payment and therefore the total cost of credit. With a good time, you can take advantage of the lowest rates.
Beyond the possible reduction of this cost, you should consider the potential profitability of this new ability to save.
Consider renegotiating your loan insurance
If the APR (annual percentage rate) is largely determined by the type of loan in question, the portion generated by theloan insurance. As a reminder, it is assumed that the loan insurance guarantees the repayment if an event foreseen in the clauses occurs. For example :
- death of the borrower or one of the co-borrowers
- Job loss
- temporary incapacity for work
- total or partial disability
For more than 10 years, several laws have facilitated its implementation competition on this issue. If banks almost systematically ask for insurance to be backed by the loan, they can no longer impose their own or that of one of their partners. In addition to this choice which therefore remains in your hands, you have all the freedom define clauses which are perfect for your situation. A broker specializing in borrower insurance will be your best ally in this regard.
For example, you no longer need a loss of employment clause (if you set up your business), but you want a coverage of non-objective diseases (called MNO) such as back pain or herniated discs.
About the classic guarantees, it is necessary to detail the conditions of the indemnity and judge a sufficient level of coverage. If we take the example of thedisability, from what percentage is the insurance activated? For job loss, what are the waiting periods ? And you have one precautionary savings enough to deal with this situation?