In order to offer "fairer, simpler and more transparent access to the loan insurance market", parliamentarians have adopted a bill that will profoundly change things.
Insurance is not a requirement for a home loan, but it is almost impossible to get out of it. Some borrowers encounter obstacles to obtain this precious sesame, especially if they have suffered a serious illness. To put an end to this "double penalty", the members of parliament have thoroughly reviewed the loan insurance mechanism. A breath of fresh air for millions of French people who will be able to realize their plans to become homeowners.
The health questionnaire is no longer the rule
To limit the risks, before committing to you, the insurer will want to know more about you and especially about your medical history. In order to understand your physical condition, he will ask you to answer a series of questions that will allow him to better understand the risks incurred during the loan repayment period. Depending on the answers, he will decide whether to grant coverage, refuse coverage or impose an additional premium. Until now, for some people, the health questionnaire could be a real obstacle to obtain a loan insurance. And consequently a real estate loan. The Lemoine law, voted in February 2022, removes this step for real estate loans below 200 000 € (per person) whose term occurs before the 60th birthday of the borrower. This advance should allow people considered "at risk" to no longer face this problem.
Note: this measure applies from June 1, 2022 for new home loans and September 1, 2022 for borrowers who are already repaying their credit.
The right to forget is reinforced
Becoming a homeowner is often the project of a lifetime. A dream that you want to make come true, even if you have been ill. But here is where the problem lies. In case of "aggravated health risk", as in the case of cancer, the borrower may be subject to additional premiums, exclusions of guarantees, or even be refused the insurance of his loan. It is to avoid seeing his dream crumble (or become very expensive) that the right to forget was created in 2016. It allows people who have been affected by a cancerous pathology or hepatitis not to mention it in the health questionnaire, and therefore not to be penalized. More precisely, until the law of February 17, 2022, if the cancer was diagnosed before the age of 21, the right to be forgotten applies 5 years after the end of the therapeutic protocol. If the diagnosis was made after the age of 21, the right to be forgotten applies 10 years after the end of the treatment protocol. As of this summer, the right to be forgotten is set at 5 years for all cancers and hepatitis C. There will no longer be any distinction according to the age at which the cancer was diagnosed.
Note: negotiations are underway to extend the right to be forgotten to other diseases.
Change at any time
From June 2022, individuals will have the possibility to change their loan insurance more easily. Covering all or part of the payments in the event of a claim (death, disability, unemployment), it represents a significant cost that must be taken into account when calculating the budget for the loan. If it is already possible to choose it with another organization than the lending institution, a new step has just been taken. It is now possible to cancel the insurance at any time and not only within 12 months (Hamon law) or on the anniversary date (Bourquin law). The insurers will have to inform their policyholders, each year, of the existence of this right and its implementation modalities.
Please note! The new contract chosen by the borrower must offer equivalent guarantees to the old one. Otherwise, the bank may refuse to ratify the cancellation.
Marie-Christine Ménoire