Anyone who takes out a mortgage loan and also takes out fire insurance or outstanding balance insurance with the same bank in order to benefit from a reduction on the interest rate will now be able to switch to another insurer after a third of the loan term without the interest rate being increased or other additional fees being charged. The House Economy Committee approved on Wednesday at second reading a bill to this effect carried by the Minister of the Economy Pierre-Yves Dermagne. The new rules will only apply to new credits.
Banks have long used mortgages to attract customers to their insurance products. The customer is then tied to these insurance policies for the life of the loan, often 10 to 30 years, and cannot switch to cheaper insurance policies without losing the interest rate discount.
The government has decided to limit this practice. Soon, customers will be able to conclude a new contract with another organization free of charge after the expiration of a third of the mortgage term.
The initial intention was to introduce the system retroactively, but this element was removed after a negative opinion from the National Bank.
The bill was approved by the majority and the Vlaams Belang. The N-VA abstained. The PTB was absent. The text can now be placed on the agenda of the plenary session.
2023-10-04 12:18:32
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