Mortgage loan insurance: change your contract to save money in 2022!

Magnolia.fr real estate purchasing power barometer November 2022: gain square meters by changing borrower insurance!

To secure your home loan, you must take out borrower insurance. The regulations allow you to freely choose the contract and to change it at any time. Magnolia.fr calculates each month the number of additional square meters that you can acquire in the 20 largest French cities by changing loan insurance. In this particular context marked by the blockage operated by the rates of wear, the delegation of insurance is often the only way to obtain a mortgage. Discover last month’s barometer Bank insurance versus delegated insurance We offer 2 borrower profiles, and calculate for each the number of additional square meters that it is possible to acquire by replacing bank insurance with competing individual insurance. Profile 1: you are a first-time buyer, aged between 25 and 35; you borrow €200,000 over 20 years at the nominal rate of 2.20% (average rate in October 2022); bank insurance is offered at a rate of 0.34% (average bank rate), ie a cost of €13,600; at the home loan insurance comparator Magnolia.fr, the insurance displays the rate of 0.11%, i.e. the average rate observed for files with the same profile processed until August 31, 2022. The cost of insurance is of €4,400. You save €9,200 by opting for delegated insurance. How many additional square meters can you acquire in November 2022 in the 20 largest cities in France with this gain of €9,200? City Average price m2 apartment** Nb of additional m2 with 0.11% insurance Saint-Étienne €1,333 6.9 m2 Le Havre €2,265 4.06 m2 Nîmes €2,343 3.92 m2 Dijon €2,651 3 .47 m2 Reims €2,671 3.44 m2 Grenoble €2,880 3.19 m2 Toulon €3,171 2.90 m2 Angers €3,384 2.71 m2 Montpellier €3,614 2.54 m2 Marseilles €3,640 2.52 m2 Lille €3,547 2.59 m2 Nantes €3,955 2.32 m2 Toulouse €3,722 2.47 m2 Strasbourg €3,977 2.31 m2 Villeurbanne €3,922 2.34 m2 Rennes €4,183 2.20 m2 Bordeaux €4,837 1.90 m2 Nice €4,929 1.86 m2 Lyon €5,367 1.71 m2 Paris €10,401 0.88 m2 The savings calculated are the maximum potential savings if the change of insurance occurs in the month of the signing of the loan offer. Profile 2: you are between 35 and 45 years old. you borrow together the sum of €400,000 over 20 years at the nominal rate of 2.20% (average rate in October 2022); bank insurance is offered at the rate of 0.50% on each head (average bank rate for this profile), ie a total cost of €80,000; your Global Effective Annual Rate or APR is displayed at 4.04%, well above the wear rate (3.05%); your request is refused! With the comparator Magnolia.fr, insurance is offered at the rate of 0.13% on each head, i.e. the average rate observed for files with the same profile processed until September 31, 2022: the total cost of insurance is €20,800; you save €59,200 and above all, you get your financing, because the APR drops to 2.78%! How many additional square meters can you acquire in November in the 20 largest cities in France with this gain of €59,200? City Average price m2 apartment** Nb of additional m2 with 0.13% insurance (x2) Saint-Étienne €1,333 44.41 m2 Le Havre €2,265 26.13 m2 Nîmes 2,343 € 25.26 m2 Dijon 2 €651 22.33 m2 Reims €2,671 22.16 m2 Grenoble €2,880 20.55 m2 Toulon €3,171 18.67 m2 Angers €3,384 17.49 m2 Montpellier €3,614 16.38 m2 Marseille €3,640 16.26 m2 Lille €3,547 16.69 m2 Nantes €3,955 14.96 m2 Toulouse €3,722 15.90 m2 Strasbourg €3,977 14.88 m2 Villeurbanne €3,922 15.09 m2 Rennes €4,183 14.09 m2 15 m2 Bordeaux €4,837 12.23 m2 Nice €4,929 12.01 m2 Lyon €5,367 11.03 m2 Paris €10,401 5.69 m2 The savings calculated are the maximum potential savings if the change of insurance occurs within the month of signing the loan offer. Obtain your loan and gain square meters thanks to the delegation of insurance! Apart from Toulon where prices have not changed, and a few rare cities where they have taken a few meager euros (Reims, Angers, Lille, Nice, Paris and Villeurbanne), all the municipalities have seen their real estate prices drop slightly compared to our previous barometer of September 2022. Admittedly, the increase is very weak, up to a few euros, but it testifies to the slowdown in activity. The state of the real estate market in October 2022 shows an abysmal drop in the number of loans granted, in connection with the rise in borrowing rates and the problem of usury. In the meantime, the borrower insurance rates for the profiles concerned have not changed. Consult our tips for lowering the cost of mortgage loan insurance in 2022. The gain generated by the change in borrower insurance is significant enough in the majority of cities to fully justify the process. Not only does the delegation of mortgage loan insurance make it possible to acquire more square meters, but it is today the only savings lever for obtaining credit in 2022. The potential gain in Paris remains anecdotal in Paris for because of the high cost of real estate. Elsewhere, where the cost per square meter is between 2 and 8 times less expensive, you can finance between 1.70 m2 (Lyon) and 6.9 m2 (Saint-Etienne) additionally by opting for an individual contract with an insurer alternative (profile 1). Thanks to the economy on insurance, you can acquire the necessary surface for a room intended to accommodate a toilet, or even a bathroom. With a gain of €9,200 thanks to borrower insurance, why not aim for an apartment with a balcony or terrace? In our second example, not only do you obtain your loan but you can buy between 5.69 m2 (Paris) and 44.41 m2 (Saint-Étienne) additionally, 9 m2 being the average surface of a standard room and 31 m2 that of a studio with separate kitchen. The gain that you can make thanks to the delegation of insurance is all the higher as the sum borrowed is important, the cost of mortgage loan insurance being calculated on the capital borrowed. If you have subscribed to the bank’s borrower insurance, you can change it at any time with the new regulations in place since June 1, 2022. The Lemoine law allows you to terminate your insurance contract at any time upon signature of the loan offer, without waiting for any due date, and to replace it with an alternative offer with equivalent guarantees. Do not wait ! The sooner you change, the bigger the savings. *Average insurance rate based on files processed by Magnolia.fr **Estimated Best Agent prices as of October 1, 2022 (net seller price)



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