While we thought she was buried, the possibility of canceling loan insurance at any time seems to be about to be granted to borrowers. This measure, which should introduce more competition in this market, is accompanied by other facilitating and financially advantageous decisions : the end of the medical questionnaire for loans of less than 200,000 euros, but also a reduction in the period of the right to be forgotten, from 10 to 5 years for cancers in particular. Progress that Vousfinancer welcomes, network of 200 credit brokerage agencies.
The deputies and senators reached an agreement in a joint committee (CMP) to grant borrowers the possibility of canceling their loan insurance at any time and no longer only within 12 months (Hamon law) or on anniversary date (Bourquin law). The procedures will thus be facilitated for borrowers who will no longer have to respect a certain deadline and no longer have difficulty knowing the anniversary date of the contract without knowing whether it is that of the loan offer or the insurance contract. which is authentic… “The Hamon and Bourquin laws had already led banks to offer more competitive group insurance offers, particularly for young people, in order to limit the risk of termination in the short term. The possibility of canceling your insurance at any time will create even more competition in the loan insurance sector and further encourage banks to offer better rates or more comprehensive guarantees for the benefit of the borrower” analyzes Julie Bachet, general director of Vousfinancer.
Loan insurance, a challenge for the borrower
For several years, some banks have been offering attractive insurance offers for young people., or better suited to investors for example… “Since the recommendations of the High Financial Stability Council, and even more so since they are legally binding, loan insurance, which is taken into account in the calculation of the debt ratio, is a challenge for the borrower because it can represent up to two points of debt, and can therefore push a file beyond 35% debt. If establishing more competition in this market helps to lower prices, This is excellent news for borrowers, especially at the moment, which will be able to at least partially compensate for the rise in credit rates” analyzes Sandrine Allonier, director of studies at Vousfinancer.
The end of the medical questionnaire
More good news : the removal of the medical questionnaire for property loans of less than 200,000 euros and whose term occurs before the borrower's 65th birthday. This measure concerns a majority of borrowers at Vousfinancer : 52% of credit files granted in 2021 relate to loan amounts less than 200,000 euros. The average amount of credit 
financed is 196,870 euros, but it drops to 173,630 euros for first-time buyers, whose average age is 33 years old. They are therefore mainly young borrowers, less risky, who will be affected by the removal of the medical questionnaire, but it could also be, in some cases, older borrowers with a lot of down payment who only need to borrow less than 200,000 euros. “This removal will allow those who have a health problem – or have had one in recent years – not to be subject to exclusion of guarantee or additional premiums which would significantly increase the insurance rate, with all the consequences induced on the cost of credit of course, but also the debt rate and the APR (annual percentage rate) Who, if it is too high, can lead to a loan refusal due to the very low level of usury rates” explains Sandrine Allonier.
THE RIGHT TO BE FORGOTTEN REDUCED TO 5 YEARS
The right to be forgotten allows cancer patients in remission to no longer have to mention it to their insurer and thus to be able to benefit from the same insurance rate as a person who has never had cancer.
While wear rates are at their lowest, it is becoming increasingly difficult for those with health problems to successfully borrow. Why ? Because it is the annual percentage rate (APR) of the loan which must not exceed the usury rate, therefore including the nominal rate but also borrower insurance, processing fees, brokerage fees, and mandatory guarantees… (article R. 314-11 of the Consumer Code). Indeed, if at the base, the usury rate was supposed to protect borrowers by prohibiting the granting of loans at “off-market” rate conditions, when it is too low as has been the case for several months, it can exclude borrowers who have an insurance rate that is too high, due to their age or significant additional premiums, And this, even though they are financeable from the point of view of their debt and still have to survive.
The possibility of redoing projects
Fortunately, since September 2, 2015, the AERAS convention (Insure and Borrow with an Aggravated Health Risk) provides a right to be forgotten, accessible to people who have been affected, several years ago, of a cancerous pathology. Goal : enable them not to be penalized by additional premiums or exclusions of guarantees when taking out a borrower insurance contract and therefore to access the loan more easily. The right to be forgotten thus gives the right to concerned loan applicants not to declare a cancer that occurred before the loan request in two cases : if the cancer was diagnosed before the age of 21 with treatments completed within five years, or for those over 21, if the therapeutic protocol (that is to say the phase of surgical treatments, radiotherapy or medication) has been completed for over 10 years, whatever cancer he suffered from. A duration now reduced to 5 years. “It’s really very important for all the families affected by this illness and who wish to be able to continue to make plans once recovery is achieved” concludes Julie Bachet.
