The Bourquin amendment liberalized the change in insurance, but buyers with a loan insurance contract ignore it all too often . Like first-time buyers, thirty-somethings could make substantial savings by abandoning the loan insurance of their bank for a new cheaper contract and respecting the equivalence of guarantees.
Thirties, time to buy
A 2017 survey by the BVA institute indicated that the average age of a first-time buyer was 31, for a purchase amount of $ 152,000. According to the Daily Mail, 31 is the age at which you feel best about yourself. According to PasseportSanté, the probability of dying at 30 is 0.06% for women and 0.14% for men. So many parameters that make customers in their thirties pampered by insurers when they borrow for a property purchase. But the problem is that buyers are not always aware of this asset or the possibility of opting for the delegation of insurance when they take out a mortgage: to complete their financing as quickly as possible, most often they continue to sign the group contract offered by their lending institution.
A monthly contribution divided by four
Between the group contract of the lending institution and the borrower insurance delegated to an insurer, there is a price difference, beneficial to the second option. For a simple reason: the delegation of insurance is based on tailor-made guarantees, while the contract offered by the bank revolves around standard guarantees , common to all of their customers. The delegation of insurance is all the more beneficial for the youngest profiles, those who present the least risk.
According to Lite Lender data, a 30-year-old couple having borrowed $ 150,000 over 20 years pays a monthly contribution of $ 50.62 with a borrower insurance rate of 0.27% when it is 75% hedged by borrower in terms of quotas. After two years, if he takes advantage of Bourquin law to opt for an insurance delegation, he can reduce his monthly contribution to $ 12.10 thanks to a new rate of 0.07%, representing a saving of 38.52 $ each month. If we consider the overall cost of borrower insurance, it melts from $ 12,148 to only $ 2,612.64. The overall cost difference over the remaining term of the loan is $ 8,200, an amount far from negligible.
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