Home loans: what will change

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It will soon be possible to cancel your credit insurance. What will this text change? Arnaud Bayard is a notary and spokesperson for the Greater Paris Chamber of Notaries.

franceinfo: A text is currently being debated in Parliament. He was in the Senate on Thursday. He is about to change things in terms of borrower insurance…

Arnaud Bayard: The idea is to give more freedom to people who wish to take out a mortgage. This law will make it possible to change the insurance contract at any time, and no longer on an annual basis.

What is the current situation ?

You can only change once a year, on the anniversary date of the contract.

The text also removes the medical questionnaire and modifies the right to be forgotten?

The medical questionnaire is completely removed for loans of less than 200,000 euros per person, or 400,000 euros for a couple, and for loans that expire before 60 years. And then the right to be forgotten was previously 10 years, and now it goes to five years. This means that we will no longer be obliged to indicate that we have had cancer or hepatitis C.

Can the bank impose ‘house’ insurance on its borrower?

She cannot do it, it is a provision that is not always well known to buyers, since there is pressure, you have to go quickly. The bank cannot oppose your taking out another insurance, provided that it covers the same risks.

Regarding early repayments, what are the rules?

In practice, the bank very often stipulates repayment indemnities, but the bank cannot oppose early repayment, and in certain cases, the indemnity is not due, in particular in the event of a professional transfer. The bank may, however, oppose repayments of less than 10% of the initial amount of the loan.

What is the situation of those who move for their work?

If it is a professional transfer, the early repayment indemnity is not due. It is a provision of the consumer code that applies, even if it is not written in the loan offer.

How long do you have to get a loan?

Legally, you have one month, this is the minimum period granted to you. In practice, in our promises of sale, we always indicate a period between 45 and 60 days, since we can clearly see that the banks have difficulty in producing loan offers.

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