Credit: after 50 years, be careful with mortgage loan insurance
Getting a mortgage after 50 is often a source of stress. Indeed, the approach to retirement, leading to a drop in income, can dampen banks.
But another factor often weighs in the balance, age and state of health which influence the price of mortgage loan insurance.
Home loan insurance, how does it work?
In theory, home loan insurance is optional. In reality, the banks will not lend the funds without this famous borrower insurance.
Home loan insurance helps protect the borrower, and their heirs, in the event of an accident, death, disability or incapacity for work. The insurer will take care of the reimbursement of the capital remaining due or the monthly payments as appropriate. Home loan insurance guarantees vary from one insurer to another. And banks do not require the same coverage depending on the profiles.
Next to interest, credit insurance is the second most important cost! So do not hesitate to compare prices and coverages. If the amount of insurance is indeed a key element for the portfolio, the level of protection remains the most important. In some cases, only death guarantees from home loan insurance, Total and irreversible loss of autonomy (PTIA) and total permanent disability (IPT) will be offered.
Other guarantees exist to best protect the borrower, such as partial permanent disability insurance (PPI), total temporary incapacity for work (ITT) insurance, non-objective illness insurance (MNO) and insurance. Professional disability (IP) for the medical professions.
Health risks can increase your score after 50
For fiftieths, the grade may increase depending on health problems. It is therefore advisable to look carefully at the rates and guarantees of the loan insurance… and compare !
Also be careful to read the exclusions of guarantees in the insurance contract as well as the age of end of cover!
Find the best loan insurance, it’s easy and free!