Completing the Credit Insurance Health Questionnaire is a stressful step for borrowers. It could disappear for all banks depending on the projects financed.
A breath of fresh air for borrowers who present a health risk and the end of an injustice? It is a small revolution that is being prepared for borrower insurance. After the return to the debates of termination at any time of borrower insurance, the creation of an insurance contract without medical screening also seems to be gaining ground.
This weekend, as part of the first reading examination of the draft budget for 2022, the Senate voted in favor of the creation of new contracts without medical selection by adopting an amendment by the chairperson LR of the committee of Social Affairs Catherine Deroche.
What can this change for mortgage applicants? Banks will no longer be able to refuse a loan due to illness, or impose an additional premium or exclusion of guarantee. The target? A more equal insurance system for access to insurance for high-risk profiles.
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Good news for risky borrowers
Borrowers with a health problem are often penalized by the health questionnaire. “The possible elimination of the health questionnaire for buyers of main residences is good news because it will allow those with more or less serious health problems to be able to borrow under the same conditions as others, for example those who have diabetes, cholesterol, who have undergone a medical operation which does not necessarily impact their life expectancy, but which can cost them dearly or generate exclusions “, estimates Sandrine Allonier, director of communication for the loan broker Fund yourself.
“This step is particularly stressful when applying for a mortgage. Being immunosuppressed for many years, the length of the health questionnaire and the possible refusal of the insurer have always stressed me a lot. It acts of a kind of discrimination on grounds of health. It is a lot of stress to have to fill everything in, with the fear that the affection will be penalizing for the attribution of the credit or for the amount of the insurance premium. that it is all the same to buy a home, therefore to have a roof over the head, and that the fact of having a chronic disease and living normally is quite possible… Otherwise, it is ‘is double the penalty, ”explains Jacqueline, 60, in the midst of a real estate purchase project.
While this amendment is under discussion and may not see the light of day, “it is obvious that home ownership for all is at the heart of the debates before the presidential election,” said Astrid Cousin, spokesperson for the comparator Magnolia.fr insurance. Because in addition to the question of the health questionnaire, the Economic Affairs Commission of the National Assembly also validated last week a private member’s bill from the deputy Modem Patricia Lemoine. It provides for allowing borrowers to terminate at any time and without charge their borrower insurance. Again with reforms on issues related to the health of borrowers.
“Note that in Patricia Lemoine’s PPL (law proposal), the right to be forgotten and the AERAS convention (” Insure and Borrow with an Aggravated Health Risk “convention) are the themes of Articles 7 and 8. In particular, it is requested to shorten the time limits for accessing the right to be forgotten, to regulate the increases or exclusions of certain guarantees for more pathologies and to review the maximum loan amount to access this. in short, we are asking to speed up the work already set up by the AERAS convention as quickly as possible. the other is trying to create a more rational device by improving the existing one “, notes Astrid Cousin.
“While the right to be forgotten specifically concerns certain illnesses that have been healed over several years, borrowing with an illness or a health problem remains very complicated. This law is more in the direction of greater justice for borrowers. “, concluded Sandrine Allonier.
An amendment adopted against the opinion of the government
The amendment made by Catherine Deroche on so-called “inclusive” credit insurance contracts concerns loans to finance the purchase of a main residence or a business loan. “Many loan applicants are subject to refusals, exclusions of guarantees and very significant surcharges for health reasons”, denounces Laure Darcos (LR). While the amendment was adopted against the opinion of the government, the Minister in charge of Public Accounts Olivier Dussopt however indicated that the executive “supports” the bill of the deputy Patricia Lemoine which will be examined from Thursday to The national assembly.
A proposal in the era of time since a first bank, Le Crédit Mutuel, recently announced on BFM Business the abolition of the health questionnaire for borrower insurance for its most loyal customers and under conditions thus paving the way for more equality and transparency.
Towards an increase in the cost of borrower insurance?
While this measure is good news for some profiles, it comes at a cost for the banks. The mutual bank thus confided that it would cost it up to 70 million euros per year.
A gift to borrowers? Not really, since this simplification is also part of an insurance contract retention strategy. Indeed, banks have a lot to lose with infra-annual termination. A reform that could have a negative impact on the pooling of risk … and therefore have repercussions on prices. “In fact, to stop having a health questionnaire filled out is to completely review the French insurance system. With 100% inclusive contracts, how can we not bet on a rise in prices for young future borrowers? on young people, how will these profiles, without assets, without cash on hand to provide an increasingly substantial contribution with low rates and to whom we provide more expensive borrower insurance due to total pooling, will they be able to access mortgage with the same borrowing capacity? And in the long term: if we do not insure a risk, then what do we do? What will be the new banking requirement? Mortgage? Price increase? These systems are good more expensive than loan insurance …. and much more dangerous for a borrower who tomorrow will no longer be able to repay his monthly payments, “warns Astrid Cousin.
“Regarding the infra-annual termination of borrower insurance, French banks deplore the proposed changes. Indeed, the maintenance of the annual termination on a fixed date (known as the Bourquin amendment, Editor’s note) is beneficial both for the customer and for the ” balance of our model: it allows both competition, easy to exercise for the interested client, on the fixed date which is reminded to him each year sufficiently in advance, and to preserve this shared model, in particular allowing access borrowing for people with aggravated health risks, by offering offers to as many people as possible “, explains the French Banking Federation. It should be noted that borrowers also have the possibility of changing loan insurance at any time during the first year of subscription (Hamon law).
The health questionnaire in brief
The health questionnaire when applying for a mortgage is an important document to define the amount and conditions of borrower insurance. Compulsory insurance to obtain a mortgage. This covers the borrower against illness, incapacity for work, invalidity or even death.
Currently, two health questionnaires exist. One is a simplified questionnaire. The borrower only answers a few questions. The other is much more detailed depending on the pathologies. In this case, a doctor can help you fill it out.
These questionnaires comply with the provisions relating to the right to be forgotten and to the AERAS agreement (Insuring and borrowing with an aggravated health risk), an agreement established in 2006, which already promotes access to credit for high-risk profiles.
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