Borrower Insurance: The Hidden Gold Mine of Your Loan

In France, when we talk about real estate credit, we focus on the interest rate. We fight to get 3.5% instead of 3.7%.

However, the real hidden cost is often Borrower Insurance. It can represent up to 30% of the total cost of your loan.

The Problem: Paying for a Disappeared Risk

Insurance is calculated to cover the capital you owe the bank.

However, in standard bank contracts ("group"), the premium is often fixed or calculated on the initial capital.

This means that even after 15 years, when you have repaid half of your debt, you are still paying full price. You are insuring €200,000 when you only owe €100,000.

The Agitation: The Lemoine Law Changes Everything

Since 2022, the Lemoine Law allows you to change borrower insurance at any time, without fees, and without waiting for the anniversary date.

This is where the strategy becomes interesting.

If you make a partial early repayment (amortization), you reduce the Remaining Capital Due.

Less capital due = Less risk for the insurer = Cheaper insurance premium.

The Solution: The Double Savings

The winning strategy consists of combining two actions:

1. Make an early repayment (via AmortiApp) to reduce the capital.
2. Immediately change insurance by presenting this new reduced capital.

You win on both fronts: you pay less bank interest AND your insurance premium collapses.

📱 The Simulation on Amorti

Visualize the impact on capital.

1. Enter your credit into AmortiApp.
2. Simulate an exceptional repayment of €10,000.
3. Look at the new Remaining Balance.
4. Use this new balance to request external insurance quotes (delegation).

Often, the savings on insurance alone "repay" part of your investment. It is a financial lever that few French people use.

Don't let the bank win on all fronts. Recalculate everything.

Simulate My New Capital