Mortgage insurance: information for the borrower strengthened

When you apply for a mortgage loan, you must purchase borrower insurance to cover the mortgage loan. The bank must first provide you with a standardized information sheet which specifies in particular the guarantees and criteria for taking over this insurance, its price, or the possibility of choosing another insurance if it covers the same risks as that of the bank. The aim is to encourage competition and reduce the overall cost of credit.

A decree of 27 May 2022 modifies the format and content of this card, pursuant to the provisions of the Law of 28 February 2022 for more transparent access to the market of borrower insurance (Law

Lemoine

), in force since 1^er June 2022.

In addition to the information already provided, this sheet must also specify the following:

• the total cost of the insurance for the first eight years from the effective date of the loan contract;
• the invalidity guarantee of the contract is independent of the concept of invalidity as adopted by the Social Security or any other body competent to judge incompetence. The definition of invalidity has consequences for the risk covered;
• the medical questionnaire is no longer mandatory if you do not borrow more than 200,000 euros (including loans taken out with other institutions), and if the last repayment of the credit occurs before your 60^e birthday;
• you can take out the borrower insurance of your choice, which is different from the one the bank offers, and which the bank cannot refuse if it has an equivalent level of guarantee. You can also cancel the insurance taken out for another equivalent insurance at any time.