Small Loan Insurance Revolution

The Remoin Act was adopted on February 17 to facilitate changes in loan insurance. Consider the proposed measures.

On February 17, the Lemoin bill was unanimously adopted. From now on, borrowers will be able to change their loan insurance at any time, creating a small revolution in the real estate industry. We will explain to you the other side of the Remoin Law.

Presentation of the Lemoine method

Borrower insurance changes will be available from June 1st for new contracts and September 1st for all French. The Lemoine method was finally adopted on February 17, after several adaptations. The second version was proposed on October 29, 2021 after the first text was actually submitted on September 22, 2021. Therefore, the Remoin method proposes two main ideas.

  • Change loan insurance at any time.

  • Reduced time limit for right to be forgotten.

How much does debtor insurance cost under the Remoin Act?

From a legal point of view, borrower insurance is not mandatory. However, most financial institutions still need it when it comes to real estate frameworks. To be on the safe side, it will be possible for the borrower to cover the deadline in the event of a medical problem. This insurance is the second most important expense after interest repayment. However, thanks to the Remoin method, it is possible to start competition, compare offers and reduce costs associated with this as much as possible. Also, if you don’t know how to proceed, it’s quite possible to go through Empruntis or a broker you find through an acquaintance.

Over the entire term of the loan, the Remoin method should be able to achieve savings – estimated between 5,000 and 15,000 euros on average. Therefore, this measure promotes the purchasing power of French people by optimizing the total cost of loans, especially if the investor is young and healthy.

Right to be forgotten and end of medical questionnaire

Another important point of the Lemoine law is the expansion of the right to be forgotten. Therefore, you can easily get a mortgage for someone who has been ill in the past. Therefore, the law provides this right to banks that have signed the AERAS contract to extend this right to diseases other than cancer. For example, hepatitis C. From the same point of view, the right to be forgotten period is reduced from 10 years to 5 years for certain cancers. Prior to the adoption of the Lemoine Act, the AERAS contract stipulated that medical information could not be requested under the following conditions:

  • Before the investor turned 21. In this case, the treatment protocol should be complete for at least 5 years and no recurrence has been observed since then.

  • Twenty-one years later, the treatment protocol ended more than 10 years ago, and no recurrence has occurred since then.

There is no more medical questionnaire in a particular case

With the adoption of the Remoin Act, we need to be aware of another important development. This completes the medical questionnaire in the following situations.

  • Mortgages totaling less than 200,000 euros. It should be noted that this limit pertains to a single insured person.

  • A real estate loan that is repaid before the borrower reaches the age of 60.

The advantage of this removal is that the exemption of additional premiums and guarantees will prevent the original patient from being overly charged for insurance.

Therefore, the Remoin method allows for annual resilience. An important step in facilitating mortgage insurance changes. In addition, it should be noted that the law maintains the principle of guarantee equivalence.Finally, its adoption should not have for the time being

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