Redeeming credit 92000 euros – Group all your loans

The repurchase of credit, also called restructuring, consolidation or regrouping of credit, is a financial solution which tries to answer to a situation of excessive indebtedness. The purpose of the redemption of credits is to reduce the overall amount of monthly repayments. The repurchase of credit can reduce the monthly payments, but by increasing the repayment period.

This solution consists of substituting one or more existing loans with a single credit, at a rate that is lower if possible, but which can be depreciated over a longer period in line with the borrower’s income. Individuals can thus try to find a viable solution to their over-indebtedness. Finally, the borrower swaps short-term debts for larger long-term debt.

Why buy a loan of 92000 euros

  • To get out of debt, gain purchasing power or face a large one-time expense, the purchase of credit seems to be the best solution. It makes it possible to consolidate all its loans into one in order to benefit from a single monthly payment, a reduced debt ratio.and even the possibility of becoming a saver again. There are various companies who can consolidate a payday loan.
  • Improve your “customer profile” with your banker.
  • Lower the debt ratio.
  • Balance your budget and increase your purchasing power.
  • Avoid overindebtedness.
  • The redemption of credits saves money because the rates are negotiated downwards.
  • No commitment fees. As long as you have not signed anything, you are free to make your decision.
  • The repurchase of credit does not involve any surprise
  • The elements of the repurchase of credit are known in advance.
  • Credit redemption occurs when a household has several loans in repayment: it can be a car loan, a home loan, a credit work, one or more revolving loans, debts … All these loans are grouped into one, to help keep your budget. At the beginning of each month, instead of paying multiple installments, you only have one loan to repay: your purchase of credits. Everything is simpler, faster to process, and most importantly, you avoid any risk of forgetting, the consequences of which could be serious.

Personal loan for retirees

Many people over the age of 50 have recourse to personal loans. To finance a project like a trip or an exceptional expense, this type of loan is ideal for all ages, including retirement.

Be that as it may, the personal loan is accessible for retirees, the latter being borrowers like the others. Overview of the personal loan for retirees .

Retirees, borrowers like any other

The personal loan is a kind of consumer credit open to all those who have a punctual need of sum of money, up to 75 000 €. The procedure for obtaining a personal credit is the same for any borrower, including if he is retired.

Banks are well aware that life expectancy is growing longer and that retired people may well have a one-time need for cash.

Older people are getting older in good physical condition, leading to increased projects and funding needs .

However, it is clear that retirees often own their homes and have greater repayment capacity than other categories of borrowers such as students or people prohibited banking .

Nevertheless, it should be noted that the credit institution may require the borrower to be insured for death-disability after a certain age. The borrower may refuse to take this insurance, but this will have consequences for the bank’s final decision.

Personal loan, a credit available to retirees

Banking institutions often tend to view senior citizens as reliable borrowers . Indeed, one of the major criteria taken into account for the granting of the personal loan is the personal situation of the borrower.

However, retirees’ incomes are stable and they have often finished paying their mortgages. Their debt capacity is therefore greater than for young workers or unemployed people in particular.

Thus, the personal loan is easily accessible for retirees and they can even get advantageous conditions, like optional insurance, low monthly repayments and therefore a low interest rate .

More flexible than another type of credit, the personal loan is also easily accessible for retirees because of its short duration. In addition, the assets of retired borrowers can serve as collateral for the lending institution.

Personal loan: a credit with no age limit

Contrary to what one might think, personal credit is not subject to any age limit . Thus, any retiree, even beyond 65 years, can perfectly claim to benefit from this loan.

However, the age taken into account by the bank is the end of credit. The statistics show that senior borrowers in retirement have generally reached age 75 at the very end of the repayment of their personal loan.

In the event that the retired borrower decides to opt for a credit redemption , the banking practices report a credit end around 83 years.

Personal loan for students

Studies represent a significant financial investment : between tuition fees and living expenses, it is estimated that a student today needs € 850 per month to live on average, once the aids received are deducted. is close to the minimum wage.

In this context, more and more students are soliciting the benefit of the personal loan. It is estimated that 40% of students borrow an amount of € 10,000 on average. What are the conditions to benefit from the personal loan when you are a student? We make the point in this article.

A personal loan with no obligation of income

One of the main advantages of a personal loan is not to be strictly subject to a revenue requirement. Thus, banks are often inclined to borrow on favorable terms during the back-to-school period.

As a general rule, the annual percentage rate of charge varies between 0.90% and 1.15%, not counting optional insurance that can be taken in addition. Given the personal situation of borrowers, namely here students, these conditions are very attractive.

However, it should be noted that the bank will most often ask for a parental guarantee. In this case, the parents undertake to repay the personal loan in place of their student child in case it is unpaid.

In addition, another advantage of the student loan is that it is not earmarked for any particular expense, which does not require justification for the use of funds. Thus, the student who benefits from this loan can spend the sum as he sees fit.

Conditions to benefit from a student personal loan

The personal situation of the borrower is taken into consideration by the bank. Like the unemployed or well-known Banque de France , the question arises as to how to demonstrate the solvency of the borrower.

In reality, the bank will seek in particular to be reassured on the side of the parents. The student will then have to provide the income of his sureties and any financial data that may play in his favor. The student must therefore make sure to build a solid file with all the evidence of his course and his bonds.

Student Loan: Deferred Payment Option

The personal loan, when offered to students, is often subject to a deferred repayment , although it depends on the banks. These last allow a staggering of the maturities between 1 and 10 years.

On the other hand, if the State has granted a student loan, the reimbursement can not be for less than 2 years. This grace period allows the student to start repaying the personal loan once they have landed their first job.

In this sense, two options are possible. Either the deferral is total: in this case all the maturities are reported. Either the deferral is partial, which allows the student borrower to repay credit interest initially and then repay the capital once he has completed his studies.

Loan works to finance a roof

Subscribing to a work loan is the easiest way to finance different development or renovation works.

For someone who wants to do work on their roof for example, banks and credit organizations will direct it to what is called a credit work which often takes the form of a personal credit.

Besides, how does this type of credit work?

Credit works, how does it work?

First of all, it is important to know that a credit works is a loan that can be granted by all banks and you can subscribe to this type of credit to perform any work. Indeed, whether a company or an individual, it can use this financing solution to carry out these projects of development or renovation.

Although this credit is accessible to all, each bank is free to set up eligibility conditions and interest rates. But as a general rule, the work credits are capped at 75,000 euros and must not exceed 10 years since they are classified as personal loans.

The benefits of a credit works

The main advantage of opting for a credit works is the ability to perform the work yourself, all without having to submit bills for purchases of materials. Indeed, in this type of credit, it is not mandatory to submit invoices.

In principle, as soon as the loan is accepted by the bank, the necessary funds are immediately released. In addition, it turns out that there is no fee or warranty or guarantee to fill when you want to apply for this credit.

If the amounts obtained can be significant, the duration of the repayment meanwhile is very flexible. Depending on the size of the loan in question, the repayment may be spread over a period of 1 to 7 years. Speaking of repayment, the amount of monthly payments is always invariable throughout the duration of the credit.

Ready work, how to choose?

Currently, banks and lending institutions are constantly battling for the purpose of seducing or retaining customers. The main weapon they use is a credit rate lower than what their competitors offer. Thus, it often happens that the banking terms, the information and the details of the credit are not put forward by the banks.

That is why it is very advisable to go through a credit comparator works which by the way is available on this site to always be sure to choose the best credit.

With this comparator, one can conduct credit simulations and know the rates, procedures and conditions offered by each bank or broker. In other words, this tool will allow users to have in a few minutes an overview on the cost of credit and any monthly payments he will have to pay.

Finally, he will have to lean toward the institution that offers the credit that best suits his needs.

Personal loan adapted to young professionals

According to INSEE, a young worker is a person in a situation of professional activity or active job search, aged between 25 and 39 years. Many young people are active in completing their studies and wanting to carry out personal projects. Not allocated to a particular expense and flexible enough, the personal loan appears as the ideal solution. What is it really like and how to get a personal loan when you are young? 

Young workers, a population with significant financial needs

Young workers have a personal situation that stands out for the significant financial need. Indeed, although they gain their independence through their first job and leave the bench of studies, the beginning of any career is not necessarily marked by a significant salary.

However, this sometimes relatively low salary is not always enough to cover the necessary expenses and even less important investments to carry out personal projects . This may include financing computer equipment, buying a car, a wedding or a trip.

Financial support from parents is often insufficient to meet these financial needs. The personal loan is then the best solution to cover these one-time expenses because it allows them to embark on life in peace.

Young workers, a class of privileged borrowers

Many banks offer particularly advantageous conditions to young people. Indeed, they know that this category of borrowers is full of future and promises.

In accessing their first job, young workers typically earn a stable income (especially if it is an open-ended contract), although it may not be enough to cover all expenses. In addition, young workers leave their student life to have more important personal projects.

The bank is therefore positioned as a privileged interlocutor to allow young workers to benefit from a personal loan of up to € 75,000, over a shorter or longer period depending on the financial situation of the borrower . Banks are trying to capture this customer base that starts on the credit market.

The advantages of a personal loan for young people

Like the personal loan for students or retirees , that for young workers has significant benefits. First, this credit takes into consideration the personal situation of these young professionals who are starting in the professional world.

Thus, the personal loan allows young workers to finance their important expenses, like the purchase of a car while enjoying an attractive annual percentage rate (about 1% according to the banks).

The personal loan also allows young workers to more easily manage the cost of their credit through fixed monthly payments while being able to pay off the loan early without having to pay fees.

Today, personal loans offered to young workers can also include deferred reimbursement , as is the case for students or people looking for work . To find your personal loan, do not hesitate to make a credit simulation directly online.

All about personal loan in business

The company is not always the scene of a clash between employees and employers. Sometimes, the company even decides to give out personal loans to employees , which allows them to manage their cash flow in the face of unforeseen circumstances and this is an excellent solution to banks and other lending institutions.

For the professional, the advantage lies in benefiting from secure guarantees in terms of debt recovery. This article is intended to enlighten you on the outlines of personal loan in business.

Personal loan in business, or staff loan

The loan to the staff is a credit that the head of enterprise grants to its employees in an exceptional way and whose motive must imperatively be social. Regardless of the reason, the employee can perfectly well apply for this loan. However, the employer is not obliged to access this request.

The totality of the loans granted to the employees constitutes a benefit attributed by the employer because of the belonging of the employee to the company . In principle, personal loans in companies are subject to contributions and social contributions.

However, Urssaf opts for a flexible approach to these benefits for the benefit of employees . This organization recognizes that these benefits are exempt from the payment of social security contributions.

The principle is that any personal loan in an enterprise of an amount greater than € 1,500 or any personal loan allocated at a rate of interest different from the legal rate must be presented by a written act . In the absence of any writing specifically determining the amount of interest and the loaned capital , the employee could perfectly challenge the debt by indicating that it is a gift.

Personal loan in business and proof to provide

Once the employee has applied to the employer, the employer is required to make a decision, whether positive or negative. To do this, he asks the employee to provide information concerning his financial situation .

It should be noted that the employee is entitled to refuse to provide this information. However, the consequence is that the employer can draw the consequences of this refusal and reject the loan application of the employee.

Since the employer is potentially a future lender, he is entitled to ensure the financial capacity of the employee and its solvency, essential to repay the monthly loan .

Consequences of the employer’s acceptance of the personal loan

If the employer decides to grant a personal loan to his employee, even if he is employed on a fixed-term contract , the credit agreement will specify several elements such as the amount, the duration, the terms of repayment of the loan and the possible rate. interest.

On the side of the employer, the consequence of the granting of the personal loan to the employee is the assimilation of this credit to a salary advance . Therefore, if the employee does not repay the loan according to the schedule, the employer can perfectly compensate the late payment with the salary of the employee, within the limit of 1 / 10th of the salary , in accordance with the Article L. 3251-3 of the Labor Code .

Personal business loan and termination of the employment contract

What happens in the case where the employer has granted a personal loan to an employee but the employment contract is subsequently terminated or the employee is on sick leave ? Does this put an end to the personal business loan?

The answer to this question is straightforward: the termination of the employment contract does not affect the loan, unless otherwise agreed in the contract. The latter may include a provision stating that the breach of contract may result for the employee the obligation to pay the full balance remaining due.

Auto Loan, Car Loan Comparison

A car is essential on a daily basis and a car loan can make your life easier. It’s a way to invest little by little without affecting your savings. It is also a convenient method for getting your vehicle quickly.

Auto credit meets the various needs and can be done in different ways from an assigned credit, a personal loan, a bridge loan or a leasing. But before signing a contract for a car loan, it is essential to learn about a few points in order to keep control of your budget and make your choice knowingly.

Funding

car

An auto loan is a set amount of money that corresponds to the desired amount to help finance your new car. This credit can be financed from an assigned loan or a personal loan.

If you opt for a personal loan , you are not required to justify your purchase and the loan can be used to finance another project that has nothing to do with the purchase of a vehicle.

In the case of an assigned loan, the amount borrowed from the financial institution will be dedicated directly to the purchase of your car and paid to the dealer.

But it is also possible to get a car loan from a dealer or any financial institution. However, whether for a personal loan or an assigned loan, your loan will consist of a principal amount and a repayable interest in multiple installments with an interest rate set by the lender. The full term of the loan is very important for your repayment.

It can range from 12 months to 84 months maximum for the purchase of a new car or less than two years. Beyond this limit, the car has lost its value and if you can no longer repay your loan, the financial company could run too much risk by being reimbursed with a car greatly devalued.

The duration is evaluated according to the type of car desired as well as the amount of monthly payments planned. The longer this repayment period is, the less you repay each monthly payment, but you should still know that an extended repayment period will increase the cost of your investment. Finally, you can take out a credit for the purchase of a vehicle for a maximum amount of 75,000 euros.

The commitment

Investing in your future car from a car loan implies that you will not only make a considerable purchase, but also that you will commit to a multi-year loan repayment.

Before signing a car loan agreement, it is important to weigh the pros and cons, and define what this will imply in your income and in your budget in general. It is in this sense that a simulation is recommended before committing to a car loan.

From a completely free simulation, you can determine the feasibility of your credit purchase project. In addition, a car loan lasts an average of five years, which gives you a slightly more precise vision of the repayment dates. You know that you agree on a monthly payment of nearly sixty months. To better predict what a car loan might entail, imagine that could arise an unforeseen during your repayments.

This is where the utility is to subscribe to a loan insurance that increases the total cost of the loan but will remove stress in order to live this repayment period calmly and enjoy your new racing car.

A carefully researched debt ratio

the commitment-a-through-an-credit-self

Before you take out a car loan, it is important to know the different details of your loan. As this is a credit categorized in consumer credit, it is in accordance with the law on the Consumer Code.

Before granting you a loan, the financial institution will examine your file carefully and evaluate your debt ratio against the amount of credit you wish to borrow.

This rate must not exceed 33% of your total income so that you preserve a certain comfort of life. It is essential to subscribe a credit taking into account your personal situation.

Buying a car on credit should not put your economic situation in danger knowing that a vehicle is a semi-perishable good that will systematically undergo a future depreciation. The car loan will therefore be granted according to your income and your total expenses. The loan amount will also depend on your current income and debts. If your income is modest, you will not receive a sum that you can not repay, the goal being that you can constantly repay the credit without falling into the spiral of over-indebtedness. Consider buying a car that is reasonably priced.

You can always make a simulation online car credit to know the amount you can borrow and including the value of car credit that fits your budget.

Take into account costs and obligations

You must take into account all of what will cost you your car loan. So in addition to the amount borrowed and interest that you must repay to your banker, remember that you must add the application fee and compulsory insurance of your loan that can quickly increase the bill.

This is why you should ask your bank advisor what is the annual percentage rate of the car credit offer he gives you. You will then know all the fees imposed by the financial institution so that it agrees to finance you.

You will not be confronted at any time with any hidden fees and therefore no bad surprises at the end of the month. In addition, if you take out a car loan at a dealership, a down payment is often required. In any case, your obligations to the bank will not be born until your car is delivered. In case you do not receive the vehicle, your credit will simply be canceled.

More advantageous conditions than other formulas

It is recommended that you take out an auto loan rather than a consumer credit because the financial organizations are reassured to know that the money it makes available to you will be used for a useful and precise purchase.

That’s why the loan conditions are really better if you choose a car loan specifically. A consumer credit can be used to buy a car but you will have more difficulty getting the loan.

In addition, beware of the loan report where the first monthly repayment is offset. Also watch out for the bridge loan that is used to buy a new car before selling your old vehicle. In general, these types of loans are less attractive and secure and ultimately they are more expensive than conventional auto loans.

Play the competition

to-play-the-competition

Never hesitate to visit various financial institutions to compare offers. Visit several banks and credit companies to find the most advantageous auto credit terms and the most competitive interest rates.

In banks, the interest rate on your car loan can vary from 3.3% to 9% depending on the amount you request and the repayment term of your loan. Stay wary of the high fees that can be raised. On the other hand, the interest rate is slightly higher in institutions specializing in the granting of credit since it can range from 3.9% to 10.3%. However, the fees are usually free.

Be aware that the loan amount is often capped. As for car insurance companies, they apply more or less the same conditions as specialized organizations, but the amount of the loan granted is generally larger. From time to time, they offer promotional offers at fairly low rates. It is therefore strongly recommended to take the time to compare the different auto credit offers between them.

A withdrawal period

For your protection, Article L. 311-15 of the Consumer Code provides for a withdrawal period of fourteen calendar days for an auto credit after signing the prior offer. If necessary, this time of reflection expected from May 1, 2011 offers you the opportunity to change your mind without specifying the reason that prompted you to make that decision and without penalty.

You can retract by completing the detachable slip in the loan offer. You can also notify your bank advisor by registered letter with acknowledgment of receipt and specify that you exercise your right of withdrawal.

Those in a hurry have the opportunity to request the release of funds before the end of the reflection period but never before the eighth day. You still retain your right to change your mind and you will have to repay the principal that has been granted to you but also the interest that has accrued since the release of the credit.

Have a clear idea of ​​your project

A car is chosen with care and so is a credit. Before embarking on car loan applications, it is imperative to have an idea in mind. You must know the type of vehicle that suits you, if you want new or used, in which range of prices.

Always target a vehicle that stays within your means to avoid getting into debt or having your credit application refused. You do not have to have a lot of revenue to file a credit application.

Low salaries are just as likely to be loaned from the moment your profile is serious and shows that you will always be regular in the repayment of deadlines. Thus, everyone has the opportunity to file an application for a car loan with his bank or any other institution able to lend money.

The choice of the personal contribution

To finance a vehicle, you can pay for your cash purchase if your savings are substantial and you have good income. However, few people are able to pay the full price of the car at one time and provide a personal contribution when you purchase a car loan remains the winning strategy.

While you will not pay your new car cash but you have already set aside money in anticipation of this purchase. Your auto loan application will be stronger and more credible. You will need to borrow a smaller amount to cover your expenses and therefore less money to repay.

If you have a stable job and a good source of income and a personal contribution, you are likely to receive a loan.

Conclude

Before meeting with your bank advisor, you must have collected the requested documents, a photocopy of both sides of your identity to verify that you are the right person, your last two payslips and those of your spouse or your spouse. tax notice if you are not employed to confirm the amount of your income, a water or electricity bill to verify your address, a bank account where the samples will be taken, a proof of purchase order the purchase of your future car.

Some optional documents may be required such as the amortization plan for all outstanding credits, bank statements, proof of ownership, handwritten certificate of residence for persons living with an individual, the act of an divorce decree, your employment contract if you have recently changed jobs or any other item that you may be required to ensure the seriousness of your application and your situation.

The financial institution will be able to accurately define the amount of money you can borrow. It will offer you an interest rate that corresponds to the price you pay to have the right to borrow. The ideal is to be able to repay your car loan in five years, the life of a vehicle.

You will repay your car loan in monthly installments. You will have to pay each month a portion of the credit allocated to you and the interest you owe to the lender.

Inquire before borrowing

Beware of credit ads. Read the written clauses very little because they can specify that the low rate credit is only valid for a certain time usually very short. It will suddenly go at a phenomenal rate and you will not know if you do not take the time to decrypt the advertising clauses.

In all cases, advertising must indicate the annual percentage rate of charge in characters larger than those of the promotional rate. The APR must be illustrated with a sufficiently clear and representative example so that you can engage in knowing exactly which way you are heading.

Elements must appear on the advertisement. The financial institution must mention if the rate is fixed, variable or revisable, the amount of the fees of file or guarantee, the duration of the credit. If these criteria are not met, be careful and go to another credit institution or bank.

Any financial institution must communicate the pre-contractual fact sheet detailing the terms of the credit to the consumer. It allows to estimate if the contract is suitable for your real needs.

For this, this document must be given in your hands must include the details of the lender and the borrower, the type of credit, its amount, its duration, its rate, the annualized rate, the compulsory insurance and the amount, the repayment deadlines, processing fees, indemnities and risks of cancellation in case of delay and finally withdrawal periods.

For any subscription to a credit, the lending institution must verify the creditworthiness of the person. If you subscribe to a remote credit, you must complete with the financial institution a dialogue sheet to establish together your needs and your creditworthiness.

For a loan over 3,000 euros, you must attach to the dialogue card credentials and income. This form has a legal value in case of litigation or filing of debt overhang. You must therefore think about declaring all your credits in progress.

In addition, the offer of credit agreement summarizing the main features of the car loan is valid for two weeks. This prior offer is converted into a definitive contract once it is accepted and signed.

Borrowing in case of serious health concerns

You hesitate to ask for a car loan because you are sick and you think rightly that you will meet big difficulties to see you grant a loan. Fortunately, the Aeras convention, meaning Insuring and Borrowing with Increased Health Risk , makes it possible to secure and use credit even with an increased health risk.

It is intended for people who are more likely to experience a guaranteed event such as a disability or death than normal.

If you suffer or have been seriously ill as is the case of cancer or diabetes, this agreement will support your file and you are no longer excluded from the credit system. Thus, consumer loans that do not exceed 15,000 euros are concerned and you can fully contract a car loan without fear of being denied. However, you must be less than 50 years old when you sign the loan.

Depending on the level of severity of the illness, the request is subject to one or more analyzes by the insurer and possibly a reinsurer, an insurance company insurance.

Choose between new or used car credit

Everyone decides on the type of car according to their own financial means.

The choice between a used car or a new car is therefore totally subjective. A new car is obviously more expensive but its life will be much higher.

You will have less costs to incur after your purchase since you will have few repairs to make. Moreover, being new, it does not have a hidden defect because of the use.

It is also easier to get credit for a new vehicle. However, used cars will almost invariably have shorter payback periods. Currently, buying a used car from a dealership of the brand has become as reliable as a new car if you provide good warranties.

If your family has grown and you need a minivan while your budget does not allow you to buy new even on credit, you have every interest in buying it. This investment is essential and you will be able to take out a car loan specifically designed for the financing of used vehicles.

Other people could buy their new car without having any interest in buying a property that often loses 25% of its value in just one year. At this price, buying a vehicle that has already been used should not pose a case of conscience and it is better to buy a relatively new used car.

Real estate loan insurance at the best conditions

We do not always have the necessary funds for the purchase of real estate, be it residential property or business premises, for oneself or for rent. Apartment, house or offices, all at a price. The mortgage is often a necessary option for individuals as well as businesses that want to buy a property.

However, financial institutions usually ask for insurance when they take out the loan. It is therefore important to understand all the implications of this mechanism, in order to know how to make the best decisions and to make an informed choice at the right time.

Definition of mortgage loan insurance

Mortgage Loan Insurance provides coverage for the repayment of a loan, in case the borrower would not be able to honor its commitment. The unpaid bills will be covered by the insurance. It is therefore a guarantee required by the bank or the lending organization .

When you make a loan, especially for the acquisition of real estate, you still do not realize that there are other fees that come with the loan. This situation has a direct impact on the repayment plan since the monthly payments increase significantly, hence the need for insurance. When we know that several factors can influence the smooth running of the financial amortization, we must prepare accordingly .

Disruptive factors or risks include loss of employment and other related situations such as temporary and total work incapacity , known as the ITT. There is also permanent or total disability following an accident and death .

It seems obvious that banks or financial institutions can not allow such risks to hinder the payment of the sum borrowed. This is the reason why they require mortgage insurance that acts as a safeguard. It should not be surprising that almost all of these organizations have made it an essential condition for granting the loan.

The borrower insurance, how does it go?

This insurance works for both the bank and the borrower, but how? Quite simply, it covers the default that may occur on the part of the customer, for the reasons we have already mentioned.

In this case, the insurance company reimburses the amount borrowed or the capital, as well as the interest generated. This support may be integral or partial depending on the guarantees contained in the contract.

Insurance is a protection for the client, since it avoids legal problems, including the seizure of his property acquisition, for lack of payment. As a result, he also shelters his family and spares himself significant debts. The insurance in question therefore has a duration equivalent to that of the loan. This is essential for effective protection of the interests of both parties.

If there is one thing that the borrower should keep in mind, it is the fact that the cost of taking out credit insurance is an additional expense. Indeed the monthly premiums of the insurance come to inflate the payment of the interest at the expense of the borrower.

We are talking about an increase of 25% or 40%, which is added to what the individual or the company has to pay. With rates of this magnitude, it is vital that the insured takes insurance that guarantees the best possible coverage . He must carefully study the various options available to him before making a choice.

Real estate insurance, a choice to make

Among the financial institutions that most often lend, banks are most often found. These are the organizations to which borrowers turn spontaneously.

At the time of contracting the loan, the bank imposes as a prerequisite the subscription to a group insurance , a standard loan insurance available to almost all lending institutions. Many customers subscribe without thinking of the fact that they are free to opt for mortgage insurance of another type .

The good news is that this freedom is completely legal. Indeed, there are various laws that have been passed in the interests of borrowers, who have more margin. These are for example the Hamon and Lagarde laws that give full latitude to seek the services of a real estate broker or an insurer for his mortgage.

However, this option is only valid if the guarantees offered by these third parties have a value equivalent to those offered by the group insurance offered by the banking institution. This is an unavoidable condition that must be controlled by consumers.

Which mortgage insurance insurance to choose?

Before embarking on this adventure, it is necessary to study in detail the various offers on the market. The needs of customers are not the same, it is imperative that they choose the insurance according to their profile . Each contract or insurance policy has its own clauses. Although several companies may have common clauses, each offers specific conditions that the consumer must be aware of.

On our website, it is easy to consult price comparisons and guarantees. Free simulations are offered , as well as non-binding quotes. Another equally interesting option is to call on a domain expert, who has the skills to serve as a guide. He can then direct you to the contract offering the guarantees that best suit your interests and needs. This approach is especially recommended for those who have little or no mastery of this sector of activity.

Real estate loan insurance: a choice to make freely

Being able to freely decide on your mortgage insurance is very appreciated. But this peculiarity does not always allow the operations to be done on their own. It is not always easy for borrowers to choose the insurance they need.

That’s why many are content with the bank’s group insurance policy, or any other financial institution. If it is easy to accept this solution, it is not always the best since there are others much more interesting.

It would be better to think of an individual contract, with guarantees adapted to the situation of each individual . This allows you to make substantial savings, but also to have offers that can be adapted to his profile, especially since the group guarantees are almost identical. Thus, those who have a younger age group with good physical and mental conditions, come out winners.

There are certain laws that allow taxpayers to choose other types of insurance at three key moments, set by different regulations. There are three, including the Hamon law through which one can change insurance in the year following the signature of the loan offer. The customer incurs no penalty and can make this change at any time of the specified period, since July 2014.

There is also the Lagarde law passed in 2010 which allows the borrowing client to offer the services of another insurer provided that the latter has guarantees that are at least equivalent to those of the group contract of the lender organization.

Another rule favorable to this freedom of choice is that of the Sapin II law, introduced in February 2017. Its particularity lies in the fact that it offers a possibility of termination of the contract each time a year is added to the date subscription.

You must first take care to notify the bank or the financial institution responsible for the loan, two months before the end of the first contract.

The equivalence of guarantees: an essential condition

Whatever legislation is relied upon to choose another insurance, it is specified that the value of the different coverages offered by the other insurance companies must be at least equal to that of the collective contract. If this criterion is not met, the bank may refuse, without the right to add other fees or to increase the rate at which the credit is granted.

In addition, the lending organization has the obligation to formulate in detail its different requirements for the borrowing client. It passes for this by a standard card of information on which the consumer can be based to begin or to update the comparison of the different offers on the market.

He must be able to have it in his hands as soon as possible, already at the time of the pre-loan offer. The main details to be included on the sheet are:

  • the amount, duration or other characteristics of the loan;
  • the rate at which the loan is granted, as well as the details of the guarantees;
  • the cost of insurance;
  • the freedom, or the right, of the client to choose another insurer.

These different details must be clearly communicated in order to avoid any risk of confusion. To avoid excessive misuse by banks or lenders, a structure has listed different differentiating criteria. This is the Financial Sector Advisory Committee ( FSAC ). In total, there are 18 criteria for conducting a better comparative study of insurance contracts.

If there is one thing that is clear in the insurance industry, it is price fluctuation . So you only have to be old enough to pay double the premium you would have paid 2 years ago. In addition to age, there is also the state of health that has a significant influence on fares.

Good physical and mental conditions can be used to reduce premiums. The term of the loan is also a fundamental factor that can affect the cost of insurance. To get an idea of ​​the rates charged, it is recommended to make a comparison by asking for quotes from various insurers.

It is thus possible to determine what is the best offer in relation to its profile and its needs. Generally, we can see on the market that the lowest mortgage loan insurance rates are around 0.20% and 0.65% .

Real estate loan insurance: for which guarantees?

One should not choose an insurance only on the price that it proposes. Although this is an important criterion, the guarantees offered in the contract must also be taken into account. They are a hedge against the various risks that may hinder the repayment of a loan.

It is therefore necessary to measure the different specificities and make a decision accordingly. It must be remembered that there are different types of guarantees, those that are mandatory and those that are optional.

What are the mandatory guarantees?

There is :

  • the IPP guarantee (permanent and partial invalidity): it intervenes in case the customer finds himself unable to perform the professional activity specified in the insurance contract. The PPI belongs to the first category of Social Security and triggers the reimbursement by the insurer of part of the monthly payments, based on the calculation of the disability rate which can vary between 33% and 66%.
  • the IPT (Permanent and Total Disability): a guarantee that applies to insured persons with a physical or moral disability, preventing them from engaging in a gainful activity. Belonging to the second category of Social Security, his statement must be made before the age of 65 years. Here, the assumption of the insurer is based on a contractual disability rate of between 66% and 99%.
  • the PTIA (total and irreversible loss of autonomy): a guarantee that requires the intervention of a professional who judges the complete loss of autonomy, before any support. Classified in the 3rd category of Social Security, it is also imperative that it be established before the age of 65 years. This disability concerns people who are unfit to engage in any paid activity and who need assistance in their daily lives. The insurer is responsible for paying the total of the installments, according to the given quota.
  • IP PRO (Occupational Disability): This guarantee covers the risk of total and, above all, permanent incapacity of medical professionals to exercise their profession. The paramedical corps and veterinarians are also concerned by this coverage. The insurance company pays the full amount of the outstanding capital, subject to a professional disability exceeding 66%.
  • the death guarantee is also part of the cover that can benefit any candidate for a mortgage. In this case, the insurer only intervenes in the event of the death of his client before the end of the loan agreement. It pays for all the installments in relation to the insured portion.

Insured persons are reminded of the specificity of the guarantees relating to temporary or total incapacity for work and to permanent or total disability. In these 2 cases, the client must check the box of the clause “his professional activity”, and not “any professional activity”, to avoid any risk of interpretation. He can thus be covered even if he exercises another activity.

What are the optional guarantees?

There are usually 2 of them, including:

  • ITT (Temporary incapacity for work); which may be consequential to an illness or accident. In this case, a reimbursement or lump sum reimbursement is provided, knowing that the work stoppage must not go beyond 1095 days (3 years). After this time, we fall into the category of disability benefit.
  • In the event of dismissal , a loss of employment benefit applies which may also concern the conventional break, but not always. This guarantee can not be evoked if the dismissal is caused by gross negligence or resignation.

Conditions in which the guarantees do not apply

These conditions are referred to as “exclusion of warranty”. They are often found in bold, in color or in a particular font, since insurers are required to display them clearly.

In this category, we can cite the mental disorders considered by insurers as “non-objectifiable” diseases. They may result in non-application of disability and disability guarantees. However, there are some situations related to these diseases, in which the client can be compensated.

He can claim if he has undergone surgery or hospitalization for more than ten days, because of the said disease. These non-objectifiable diseases can be taken into account in some contracts if you pay a higher premium.

Various factors related to the guarantees of borrowing contracts

Both in the clauses and in the specificities of the guarantees, one discovers certain elements which can impact the amount of the premiums or the assumption of responsibility. Among other factors, there is an age limit from which certain guarantees are no longer covered by the insurer. This limit is generally between 65 and 75 years old . Insured persons can still claim cover for sick leave or disability.

There is also the insured portion which concerns the total or partial assumption of the loan. When a claim occurs, coverage is based on a given percentage, relative to the insured portion. If the guarantee covers the entire loan, we are talking about a 100% quota.

A couple wishing to obtain a loan could choose a percentage of 100% to be sure to have a full payment of their credit if the death of one of the partners occurred before the end of the repayment. However, they can subscribe to a proportion of equal shares or 40% for one and 60% for the other.

There is a limit of care, especially in the case of a job loss or compensation is limited between 12 and 24 months.

Other terms and conditions relating to borrowing contracts also include indemnity and lump sum indemnities that apply to loss of employment, work stoppage and disability. The indemnity guarantee is the one by which the insurer deals only with the income lost by his client.

If the latter receives assistance or has access to other income from other contracts, these different amounts are deducted from what the insurance will pay him. On the other hand, the flat-rate guarantee requires a fixed payment on the basis of a percentage of the remaining reimbursement.

The guarantee ceiling and the deductible are also part of the terms of a borrower insurance. The first one concerns a limit of the indemnities perceived by accident or over a year, while the second concerns a period during which even in case of occurrence of the disaster, there is no assumption of responsibility.

It can vary between 30 and 180 days for the disability guarantee and 40 and 180 days for the loss of employment. At the beginning of the contract, the insurer can activate a waiting period during which it does not apply any cover. For example, for the loss of employment, the waiting period is of the order of 3 to 12 months when the contract is signed.

Various steps to subscribe to a borrower insurance

To subscribe to an insurance, the customer is first given a standardized information sheet that gives him an idea of ​​the different guarantees required by the bank. The same procedure is carried out with the insurer to allow the consumer to judge more objectively the various offers made to him.

The client also has access to a personalized form given to him after his loan file has been carefully studied. It is thanks to this card that he becomes aware of all the guarantees he will have to provide in order to benefit from the funds requested. It is this same card that will allow the insurer to adapt its offer so that there is, at least, an equivalence of the guarantees between the lender and the insurance, if the borrower decides to choose another.

Various information to communicate to the insurer

It is important for the borrower to share certain information with the insurance company so that the insurance company can set the premium and the different guarantees of the contract. He is therefore required to complete a health questionnaire or undergo medical examinations, if deemed necessary by the insurer. It is necessary to be completely frank and not to hide any information, at the risk of not taking care in the event of disaster or a cancellation pure and simple of the contract.

How to activate the borrower insurance?

In the event of a claim, for example, the insured must send a declaration to the insurance company in the form of a registered letter. It can also be sent to the lender who will send it to the insurer. This declaration must be made within a specified period of time in the contract, so as not to risk being refused a payment of compensation.

What to do in case of litigation?

In this case, the client can apply to an organization working as a mediator in the sector or the customer service of the company to make claims. There may also be disagreement with the state of disability or disability. There, it would require the intervention of a medical expert, engaged by the care of the insured. If the disagreement persists, a third expert is called upon.

Insurance for people with serious and chronic illnesses

For these people, subscribing to an insurance contract is either impossible or very complicated. Even if they manage to find an insurance company, the guarantees offered are very small. To mitigate this situation, the AERAS convention has been set up and aims to simplify access to loan insurance for those concerned.

Equivalent solutions to mortgage insurance

There are various alternatives for people who, for a variety of reasons, are unable to access mortgage insurance. In particular, there is the mortgage the borrower can take on real estate belonging to him. In addition to this solution, he may also use a bond based on the commitment of a natural or legal person to guarantee repayment, if the borrower does not succeed.

Mortgage insurance in case of illness
Renegotiate real estate loan insurance
What rate for home loan insurance?
Real Estate Mortgage Insurance Medical Questionnaire
Real estate loan insurance change
Reimbursement mortgage insurance
Right to be forgotten and mortgage insurance
Mortgage Loan Insurance and Age
Mortgage insurance and rental investment
Real estate loan insurance refused: what to do?
Mortgage insurance premiums
Real estate loan insurance: what is it?
Guarantees of mortgage insurance
Is mortgage loan insurance compulsory?
Real estate loan insurance: information to communicate
Choose your mortgage insurance
Delegation of mortgage insurance
Real Estate Loan Insurance and Health Status
Deduction of loan interest on mortgage loan insurance
Real Estate Loan Insurance and Divorce
Purchase of home loan insurance
Real estate loan insurance and sale in the future state of completion

Real estate loan insurance: make the best choice at the best price on your credit insurance 5 (100%) 1 vote

To go further on mortgage insurance

In case of illness renegotiation Rates The medical questionnaire Change of insurance Refund Right to be forgotten Insurance and age Rental investment Insurance refused Insurance premiums Definition mortgage insurance Guarantees Obligations Information to be communicated Choose well Delegation of insurance Health Deduction of interest on borrowing Divorced Purchase of home loan insurance Sale in the future state of completion

The trundle loan to reduce the cost of your credit

To lower the cost of your credit , it is possible to set up a piggyback loan , which is also called double-line loan. This arrangement plays on the rate difference between long-term and shorter-term loans to reduce the total cost of credit.

1. How does it work?

The piggyback loan is actually made up of two loans : one on a long term, with a high rate, and the other, usually for a lower amount, for a shorter period and therefore with a higher rate. advantageous. Part of the borrowed capital is then repaid over a short period of time at a lower rate: in total, the average rate on the entire assembly is therefore lower.

Both loans are then smoothed , in order to obtain a constant monthly payment. Specifically, during the repayment of the short loan, the monthly loan will be reduced, then increase after the first loan. You will not see the two lines on your monthly withdrawals.

2. Several thousand euros in savings

In addition to savings on the interest rate, you can sometimes save on credit insurance . In fact, according to the same logic as the interest rate, insurance on a short loan costs less than insurance on a long loan, since there is less risk that something happens to you.

At the end of the shortest loan, you will stop paying the borrower insurance on this loan, which may slightly change your monthly payments (insurance included) downward. It is also possible to take into account this parameter to smooth your monthly payments, insurance included.

Example

Take the example of a loan of € 200,000.
If you go through a traditional loan, say over 20 years at 2%, you will pay a monthly payment excluding insurance of 1012 €. The total cost of your credit will then be € 42,824.

Let’s now calculate the savings you will make by making a loan on two lines. For simplicity, consider that each line is worth € 100,000. The longest line will remain on 20 years, and will be 2% as for the conventional loan. The second will be over 15 years, and so will be at a lower rate, say 1.8%. Once the loan is smooth, the monthly payment will be € 1005 excluding insurance, which will generate a total cost of € 35,593. This assembly will thus make you save 42 824 € -35 593 € = 7 231 €.

3. A montage difficult to obtain? Everything depends…

The trundle loan is little known to the general public, and sometimes even unknown to the bankers themselves.

In addition, a dual line loan file is more complicated to mount, which explains that banks do not offer all this montage. When they offer it, they often take important fees. These fees are either fixed or proportional to the loan amount (approximately 1%). They may also increase their rates or the cost of collateral. Finally, some make it more difficult to adjust the maturities or the early repayment.

To maximize your chances of getting a trundle loan, it is essential to go through a broker , who knows which banks offer it, and how to negotiate it. Pretto will help you negotiate a dual line loan if your case allows it.

The franchise: repaying your home loan later it is possible

1. The franchise, yes … but in what cases can we postpone the refund?

The franchise is to postpone the start of repayment of the loan, so the beginning of monthly payments. It applies in cases where the property for which you have applied for the loan is not available immediately.

In which cases is a franchise made?

Generally, the franchises are put in place if you buy in the new or in the old with works, whether for a principal residence or a rental investment :

  • For purchases in the new ( off-plan , house construction ), housing is not habitable from the beginning of financing: the delivery is actually made months or years after the first fundraising.
  • For purchases in the old , it often happens that a lot of work is needed before you can move in. The accommodation is also not habitable at first.

In the case of a rental investment, the franchise authorizes you to start repaying the loan only once the housing concerned can accommodate a tenant. Generally, the bank accepts a franchise of maximum six months in these cases.

Finally, it is not impossible to get a franchise for a purchase in the old without work, but it is exceptional.

What advantages to the franchise?

In all cases, a deductible can be set up between the date of purchase of the property and the end of the works . You borrow but do not start repaying until later, when the work is finished. So, why is it top?

Without this deductible, the borrower should accumulate expenses:

  • monthly payment of credit for new housing
  • potential costs related to previous housing.

This situation is rarely sustainable for borrowers: banks understand it (phew!) And the franchise is widely accepted.

2. Partial Franchise or Total Franchise?

Depending on the repayment capacity and preferences of the borrower, the deductible may be partial or total .

The difference between the two types of deductibles relates to the management of interim interest , that is to say the interest on the funds released before the delivery of the good.

Partial deductible

With a partial deductible, you pay the interest from the first release of funds, every month: only the return of capital is deferred. On the other hand, with a total deductible interim interest is also deferred.

How to make your choice? Remember first that the total deductible is intended to reduce as much as possible the amounts to be paid before the delivery of the good , but this advantage has a cost : the deferred on the interest intercrow generates interests in addition … interest on the interests finally!

Total deductible

In the case of a total deductible, the payment of interim interest can be made in two ways:

  • or you pay them at once to the delivery of the property
  • or they are added to the total capital financed and you pay them over the entire term of the loan.

The second option is an advantage for your cash at first but do not forget that interest will be generated on a capital then higher for the duration of the loan.

Example

By subscribing to a real estate loan with Caisse d’Epargne , for example, you can benefit from a partial or total deductible according to your needs. The total or partial deductible with the Credit du Nord can be set up for a maximum duration of 24 months.

2. A case study to help you choose your type of franchise

Take the example of the purchase of a new property for € 200,000 (excluding notary fees and guarantee fees), which will be financed by your contribution. The deadline announced by the manufacturer for the delivery is two years, and constitutes the schedule of calls of funds following: 50 000 € with the signature of the authentic act at the notary, 125 000 € a year later, and 25 000 € on delivery two years after the signature at the notary. You opt for financing over 20 years (2 years during construction, and 18 years after receipt of the property) at a rate of 2%.

To finance the project, 4 options are possible with different terms for the franchise, from the most advantageous from a cash point of view to the least expensive these options are compared in the table below.

 

  Without franchise Partial deductible Total deductible and interest payment at the end of two years Total Franchise and Reinstatement of Interest
Total cost of credit $ 43,720 $ 48,820 $ 48,875 $ 49,693
Cash Year 1 $ 13,540

€ 1,300 300 € 300 €
Interests € 3,915 1,000 € 0 € 0 €
Amortization € 9,325 0 € 0 € 0 €
Insurance 300 € 300 € 300 € 300 €
Cash Year 2 $ 13,540 € 3,800 300 € 300 €
Interests € 3,727 € 3,500 0 € 0 €
Amortization $ 9,513 0 € 0 € 0 €
Insurance 300 € 300 € 300 € 300 €

As you can see, the longer you delay the repayment, the more the total cost of credit increases. However, if you need cash, the deferred credit is a good solution.

3. Franchising: a way to generate cash

Do you have a franchise and the work in your new property ended earlier than planned? Smile, you are a winner! This situation will allow you to clear cash before entering the repayment period of your loan.

During this time, you do not pay the work charges (now completed), perhaps even the cost of your old home either (if you were able to move in) and the bank is waiting for the return of capital later.

This is a time when your cash should be better and you can enter more serenely in the next step: pay the money back to the bank. What else can I say except that the deferred credit will have served you well?