Undivided Loan – How to choose the insurance of each borrower?
April 15, 2019
When you buy a property with several through the subscription of a mortgage, each must ensure its share of repayment of the loan by contracting a loan insurance in joint ownership to protect against the risk of death, disability but also incapacity for work or loss of employment.
What is indivision?
An indivision consists of an act of acquisition with several, that is to say to become owner of the same property to several. An undivided property is the property of several people. They can neither sell their shares without an agreement from the other owners, nor divide the property into lots.
Realize a real estate purchase in indivision
To acquire a property in joint ownership, you need at least two buyers. At the time of purchase, each of the purchasers becomes the owner of the housing up to its share of investment. The notary is also required to specify in the deed of sale the share of the total amount contributed by each person. In the case where this is not indicated, property buyers in joint ownership become owners in equal shares.
Indivision loan insurance
In the context of the subscription of a property loan for purchase in joint ownership, it is necessary to take out an insurance loan in joint ownership in order to guarantee its repayment to the bank and that each one is covered against the risks of death, invalidity, incapacity or unemployment. You then have to divide the quota (insurance rate) on each of the co-borrowers taking into account the level of income and the risks that each can present: salary, age, state of health …
From an obligatory minimum of 100%, this quota can be divided according to your choice: 70/30, 60/40, 50/50 … And, in case of occurrence of a risk, the insurer will take charge of the repayment of the loan up to the insured amount. In order to allow a total repayment of the mortgage by your insurance loan in joint ownership, you can opt each for a quota of 100%, which will, however, cost you however more expensive.
Why opt for a delegation of insurance?
You can use the delegation of insurance for your insurance loan in joint ownership, ie to take out another borrower insurance than that offered to you by the lending bank. This gives you the opportunity to find a cheaper contract and more adapted guarantees than the group insurance contract (group contract) of this one. In fact, individual insurance contracts are based on the borrower’s profile and situation, which means that if you are not at risk and you are young, you can benefit from a very attractive price. and thus significantly reduce the cost of your home loan insurance.
Get the best price insurance loan with Gilbert Osmond
As a specialist insurance broker, our role is to help you find the best contract on the market that will guarantee the lowest rate of your property credit in joint ownership. We advise you and inform you so that you get your insurance at the best quality/price ratio!