Loan insurance is optional, it is possible to calculate how much one can borrow without insurance, but this cover is very often required by lenders.
How much can I borrow without insurance?
Do you have a credit project, whether for a real estate acquisition or a personal project, and you want to know the amount that can be borrowed without insurance? It is enough to carry out a simulation of borrowing capacity within the framework of your mortgage or your consumer loan.
The idea is to obtain the maximum loan amount that can be taken out with a bank taking into account only the credit, without the amount of loan coverage. To calculate the borrowing capacity without insurance, the bank or rather the bank adviser will study the situation of the borrower based on the information provided in the simulation form.
It will then take into account the income, the fixed charges and the possible monthly loan payments already present. When the monthly payments are too large, some recommend alternative solutions such as loan consolidation.
The cost of borrower insurance can vary depending on the credit institution but also depending on the borrower, a young borrower of 30 years will get cheaper coverage than a borrower over 60 years. The offers are therefore largely offered without insurance because you must have all the information relating to the health of the borrower via the health questionnaire, sensitive information which is only requested during the financing study. Not before.
Borrow without insurance: optional but required
If insurance is optional, it is however required by the lending organizations, which may refuse to lend the desired amounts without this guarantee. The insurance makes it possible to take charge of the reimbursement of the monthly payments in the event of death, invalidity or temporary incapacity, it is both a cover for the borrower because an incident quickly happens but it is also a guarantee for the bank to find the loaned funds. If the borrower absolutely wants to borrow without insurance, he must offer sufficient collateral for the bank.
Estimating a home loan or consumer loan without insurance allows you to have a real idea of the amount that a borrower can obtain and above all to direct his searches for real estate accordingly. Thus, there should be a slight margin in the monthly payments for loan insurance, the latter can be calculated separately and especially taken out with insurance companies, which generally offer more attractive offers. Good to know: for households having difficulty finding insurance following their state of health, the AERAS agreement provides access to cover.
Note that the insurance rate is the TAEA and that its rate may vary depending on the guarantees subscribed, some borrowers do not hesitate to include in their coverage unemployment insurance for example, guarantees that can avoid financial worries in the event of an incident or a change in professional orientation.