Acquiring real estate is a project that is best undertaken as long as you are young and have the opportunity. Indeed, it is easier for a young person benefiting from a stable professional situation to obtain a mortgage.
Among the conditions of the mortgage the easiest to fulfill for a young first-time buyer, we find in particular the subscription of a mortgage insurance. What is this due to? What are the advantages over the warranty? Answers.
As a general rule, a young borrower benefits from the status of first-time buyer insofar as it is the first time that he wishes to acquire a property. This acquisition, however, implies the need to finance the project with a mortgage due to sufficient savings. As a young first-time buyer, you must then turn to a bank to obtain the funds necessary for your real estate project. For the funds to be released, credit institutions require a guarantee:mortgage loan insurance.
The purpose of this insurance is to cover the risks of non-repayment caused by the death of the borrower or his disability. And as the first-time buyer must take out a loan for a period of 20 years or more, this insurance is more than necessary to cover the risks. The young borrower is able to benefit from 3 types of guarantees, namely, the death and disability guarantee, the incapacity for work guarantee and the job loss guarantee.
Loan insurance is coverage that every borrower should have. However, for the young first-time borrower, it is particularly interesting. The reason is that this insurance entitles him to subsidized loans such as the zero-rate loan or the social accession loan. On the other hand, the young borrower profile is particularly appreciated by insurance organizations. This is because with them the risks are low. By taking out loan insurance as a young person, you have the opportunity to take advantage of a low insurance rate. However, you should avoid situations that could aggravate your case and increase the level of risk. For example, it is advisable to lead a healthy lifestyle, to work in an area where you do not risk injuring yourself and not to practice risky sports. With a low insurance rate, you significantly reduce the total cost of your debt.
When it comes to home loan insurance, you have two options. On the one hand, the bank will offer you its group insurance which is a collective coverage that you will share with other borrowers. Good coverage, group insurance is established in such a way that all the needs of policyholders are taken into account. Bank insurance, however, has a reputation for being expensive. On average, its price is twice as much as that of external insurance. This is explained by the fact that to compensate for the fall in real estate rates, banks prefer to increase the rate for insurance. Fortunately, you have the possibility of choosing your insurer thanks to the principle of insurance delegation established by the Lagarde law, provided that it is able to provide you with the same guarantees offered by the bank.
By using an online insurance comparator, you are therefore able to benefit from a tailor-made loan insurance contract and a low rate. Under no circumstances can the lending bank use this pretext to modify the conditions of your loan. The only reason that the bank is able to invoke to refuse you the delegation of insurance is the lack of equivalence of guarantees.
