Are you considering the option of buying back credit and wondering what will happen to your borrower insurance? Find out what it means to buy back credit for loan insurance, especially if your transaction involves a mortgage.
The repurchase of credit, an interesting operation
The repurchase of credit consists in regrouping all its outstanding loans in only one. This allows you to take advantage of a more advantageous rate depending on the economic situation, but also and above all, a single, lower monthly payment, in order to find an acceptable debt ratio.
This operation is in fact primarily intended for households which are struggling to meet the repayment of their loans. When these loans include revolving credits, the interest is also to benefit from more attractive rates. When a home loan appears in the equation, one can legitimately wonder about the consequences for borrower insurance.
What becomes of borrower insurance? Several scenarios
Loan insurance is generally purchased when borrowing a large amount of money. This is particularly the case when obtaining a home loan. If you have taken out your loan insurance with the lender then it is very simple: the termination of the loan entails the termination of the insurance which was linked to it.
On the other hand, if you have taken out insurance by delegation from another organization, you will have to turn to your borrower when buying back credit, or cancel it to take out new buy-back insurance. How to reduce the cost of your borrower insurance when buying credit?
The repurchase of credit, it is the occasion to look into the offers of the market. The conditions of your loans have evolved and your file has been simplified: you have only one creditor to honor. In addition, you no longer have the same profile, if only from the point of view of age, which can affect the cost of your insurance. In this case, it may be useful to contact a loan insurance broker to take advantage of the opportunities offered by the insurance delegation, and thus smell the most attractive offer based on your profile.