Young borrowers: how to get loan insurance without blowing your budget?

Why is loan insurance essential for a home loan?

The loan insurance is not legally mandatory, but it is required by almost all banks to grant a Real estate credit. It protects both the borrower and the lending institution in the event of inability to repay due to an accident, illness, disability, job loss, or even death. For a young person, often without significant savings, this Safety is essential to avoid over-indebtedness or the loss of your property in the event of a major blow.

The advantages of being young for borrower insurance

You are lucky, being young means benefiting from a reassuring profile for insurers, because health problems are generally less frequent! This results in lower insurance rates and formalities that are often simplified.

For example, for a loan of less than or equal to €200,000 repaid before age 60, it is no longer even necessary to complete a medical questionnaire, thanks to the Loi Lemoine.

The criteria that influence the cost of insurance

The amount of the premium depends on several factors:

• Age at time of subscription: the younger you are, the cheaper it is.
• Health status: if you are a non-smoker and have no medical history, you pay less.
• Occupation: if you do a risky job, however, you may be subject to an increase.
• Loan amount and term: the higher the insured capital and the duration, the more the cost increases.

How can you reduce the cost of your loan insurance?

1. Compare offers

Use a borrower insurance comparator to get personalized quotes according to your profile. The price difference can be up to 60% between group insurance and individual insurance.

2. Opt for insurance delegation

You can choose a individual contract with an external insurer, which is often more competitive and better suited to your situation as a young borrower. Just make sure that the guarantees are equivalent to those required by the bank.

3. Adapt the guarantees to your needs

Some Guarantees are essential (death, total and irreversible loss of autonomy), but others (disability, disability, job loss) may be optional depending on your professional and personal situation.

4. Take advantage of the Lemoine law to change insurance at any time

If you find a better price elsewhere, you can cancel your current contract without waiting for the anniversary date, and make immediate savings.

Additional tips to save

• Negotiate application fees : some insurers offer or reduce them for young first-time buyers.
• Check warranty exclusions : cheaper but very restrictive insurance can be expensive in the long run.
• Ask a broker for advice : he will be able to defend your interests and find the best offer according to your profile.

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The role of the real estate hunter in the search for loan insurance

Reminder: what is a real estate hunter?

The Real estate hunter is a professional commissioned by the buyer, and not by the seller, to find the ideal property according to specific criteria: type of housing, location, budget, etc. He accompanies his client from the definition of the project to the signature at the notary, through the negotiation and verification of administrative documents.

Its role in buying real estate

1. Project advice and framework

From the start, the Real estate hunter helps you define a realistic budget, including not only the price of the property but also all ancillary costs, including loan insurance. It also makes you aware of the importance of comparing insurance offers.

2. Connecting with experts

Thanks to his network, the real estate hunter can refer you to specialized brokers or partners capable of negotiating advantageous borrower insurance. It puts you in contact with professionals who know the specificities of a young borrower profile and who will be able to find the best guarantees at the best price.

3. Financial feasibility assessment

The real estate hunter check the adequacy between your borrowing capacity and overall cost of your project, insurance included. It also alerts you to the impact of the choice of insurance on the debt ratio and the feasibility of the case, which is crucial if you have a limited contribution.

4. Administrative support

Throughout the procedures, the real estate hunter guides you in the constitution of your financing file and insurance. He ensures that you have gathered all the necessary documents, that the deadlines are respected and that the conditions imposed by the bank are well understood.

The advantages of a real estate hunter for a young borrower

Time saver

The real estate hunter takes care of the search for the property and facilitates access to competitive insurance offers, thus avoiding multiple procedures.

Optimizing your budget

His expertise allows you to negotiate the price of the property and find solutions to reduce the overall cost, including loan insurance.

security

It ensures that all the guarantees required by the bank are respected, thus avoiding unpleasant surprises or loan denials due to inadequate insurance.

Tailor-made support

Last but not least, real estate hunters adapt their advice to your profile, taking into account your professional situation, your health and your needs.

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