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A UFC Que Choisir study reveals a dramatic increase in property prices over the past decade. Coupled with the resurgence of rising credit costs, obtaining a favorable mortgage rate presents a notable challenge. Here’s a look at how to navigate the current market.
Is the Real Estate Market Recovering?
Experts remain divided on the state of the real estate market, with conflicting data emerging. According to the authors of Observateur Crédit Logement, “The recovery observed at the start of the September school year has partly erased the summer depression in the market.” Though, they also note that “the rate of growth in activity is three times slower today than last March.”
Also read MAP. Real estate: “The drop in prices is much less marked” in the West.
“Betting on your own bank is often the first reflex” confirms Caroline Pasquereau, strategic marketing and communications director of the broker Empruntis, whose job is to bring market players into competition. “The client’s bank has the advantage of knowing the client’s assets and financial management well. Conversely, it will only be able to offer the usual offers and financing arrangements of its establishment.”
“On an easy loan…”
“On an easy loan, less than €150,000, it can be a good plan and save time” estimates Charlotte Jehenne, credit expert at the online broker Pretto. “Then, it’s like with phone plans, the best offers are offered to new customers. Real estate credit is a premium product to attract.”
These good profiles then depend on the strategy of each bank and the client’s expectations. “The added value of a broker is to study the personal situation to present the file from the best possible angle” explains Caroline Pasquereau.”for what gain are you willing to change banks?” asks Charlotte Jehenne to her clients. Without the opp
french Law Allows Borrowers to Easily Switch Loan Insurance & Save Thousands
Noé Bauduin of UFC-Que Choisir emphasizes a crucial point for French homeowners and borrowers: “And if you have no choice, keep in mind that it is indeed possible to change now.” This refers to the significant savings available by switching loan insurance (assurance emprunteur) providers, a right strengthened by the Lemoine Law.
The Lemoine Law: Empowering Borrowers
Since 2022,the Lemoine Law has dramatically simplified the process of changing loan insurance in France. Borrowers can now switch providers at any time during the life of their loan, without penalty, provided that the new insurance offers a level of coverage that is equivalent or superior to their existing policy. https://www.service-public.fr/particuliers/vosdroits/F34669
This represents a major shift in consumer rights, moving away from the historically complex and restrictive process of renegotiating with their existing bank.
Potential Savings: Tens of Thousands of Euros
The financial benefits of switching can be ample. UFC-Que Choisir highlights that borrowers can perhaps save tens of thousands of euros over the entire duration of their loan. https://www.ufc-quechoisir.fr/assurances/comparateur-assurance-emprunteur-gratuit These savings stem from the increased competition among insurance providers and the ability to find more favorable rates.
How to switch: Bank vs. External Provider
Borrowers are not limited to their bank’s insurance offerings.the Lemoine Law allows them to choose an insurance provider from any company, including those outside of their banking relationship – frequently enough referred to as “délégation d’assurance.” This opens up a wider range of options and encourages competition, ultimately benefiting the consumer.
Key Considerations & Resources
* Equivalence of Coverage: Ensure the new insurance policy provides at least the same level of coverage as the existing one. This includes coverage for death, total and irreversible loss of autonomy (PTIA), and total and temporary loss of autonomy (ITT).
* Delegation Acceptance: Banks are legally obligated to accept the borrower’s choice of insurance if it meets the required coverage standards.
* Comparison Tools: Utilize online comparison tools like the one offered by UFC-Que Choisir (https://www.ufc-quechoisir.fr/assurances/comparateur-assurance-emprunteur-gratuit) to find the best rates and coverage options.
* Service-Public.fr: The official French government website, Service-Public.fr, provides detailed information on your rights regarding loan insurance and the Lemoine Law. https://www.service-public.fr/particuliers/vosdroits/F34669
Switching loan insurance is a powerful tool for French borrowers to reduce their financial burden and take control of their loan terms. Don’t hesitate to explore your options and potentially save significant money.
date: 2025-12-08 09:31:00