What mortgage insurance is needed to apply for a mortgage
You can insure different objects.
- Real estate. House, apartment, apartment, room or plot — the bank gives out money to them.
- Life and health. The policy guarantees payments if the borrower loses his ability to work.
- Title. It is designed to reduce the risks of transactions in the secondary market and retain ownership of the borrower.
By law, a borrower must buy only one — for collateral. Without it, the bank simply will not draw up a contract. Two other types of insurance are voluntary, but refusal may affect on the loan rate.
Compulsory insurance is beneficial not only to the bank, but also to the one who takes the mortgage. For example, with her client will receive payments in case of fire, gas explosion, flood or earthquake. The policy is issued on the design elements of — floor, walls, windows, front door. Finishing apartments, furniture and household appliances in this case are not insured — for them they offer separate programs.
You need to extend insurance once a year. If you refuse it, the bank may charge the penalty or cancel the contract, demanding to repay the debt or raise the interest rate. Specific conditions are prescribed when concluding a transaction.
What makes up the price of insurance
Life and health insurance takes into account the age and gender of the borrower. The older the person, the more expensive the policy will be. Men, as a rule, have to pay a little more for the service than women. In addition, the human profession may affect the price. If he works in hazardous production, insurance rate can grow.
You can find out how much it will cost to buy a policy without leaving your home. Mortgage Insurance Calculator from the financial marketplace Banks.ru allows you to calculate the price of compulsory mortgage insurance immediately for 35 banks or 11 insurance companies. You just need to indicate the bank in which the mortgage, the amount of debt, date of birth and gender are issued. If you already have mortgage insurance, then you have the right to apply for a new one on more favorable terms. You can also do this on the Bank.ru marketplace. The policy will meet all the requirements of the credit organization. He will come to your email immediately after payment.
On the market, stocks are regularly held that allow you to save on mortgage insurance. For example, you can get a cache back of up to 30%. To do this, you need to log in to Banks.ru and copy the promotional code from your personal account.
How not to overpay for the policy
1. Compare prices for a financial market
They may vary from different mortgage insurance companies. To find out the conditions, it is not necessary to call all organizations. You can use the services of a financial marketplace. On such sites there are calculators, with which it is easy to calculate how much the policy will cost different insurers. You can arrange it immediately on the marketplace. You don’t have to go anywhere for this — you will get the policy online. After that, the documents will be sent to your email, and they can be sent to the bank.
2. Use the « cooling period »
Making a loan — is an important and sometimes stressful procedure. Therefore, sometimes borrowers buy the first policy that comes across, just to get a mortgage faster. « Cooling period » — is the period during which you can terminate the contract with the insurance company and return the money. He is at least 14 days. It is worth running to him if you have found a more profitable offer or realized that you have been imposed additional services. To refuse insurance, you need to write a written application.
If « the cooling period » has passed, you can also refuse the policy. But then the company has the right hold part of the cost of mortgage insurance, if it is prescribed under the terms of the contract.
3. Reform the policy in another company mortgage insurance
Usually mortgage insurance is renewed once a year, and therefore you can renegotiate the contract on more favorable terms or change the company. Each of them has — its own tariffs. Suppose for a young woman with a debt of 3 million rubles the amount for two mortgage insurance— real estate and life — can range from 6 to 9 thousand rubles per year. And for a middle-aged man with the same loan, — from 12 to 17 thousand. Sometimes banks increase interest on a loan when changing an insurer. But such actions illegal. The interest rate can only change during a period that does not cover the new policy.
If you draw up a policy through a financial market play, check the promotional codes and promotions. For example, at Banks.ru you will receive a cache back of up to 4 thousand rubles for the purchase of a — policy for this, after paying mortgage insurance, it is enough to fill out special form, and until the end of next month the money will go to the account. You can find out where it is more profitable to reissue the policy with mortgage insurance calculator. To do this, you don’t even need to register on the — website just enter the data, and the service will show how much the new policy will cost in different companies.
Take out insurance
4. Recount insurance premiums
When renewing a contract, always check the amount of the loan balance. If you made additional payments, it will be less, which will affect the price of insurance. By the way, with full repayment of the mortgage, money for an unused mortgage insurance period can be returned.
Be careful when refinancing. When placing an agreement with the previous bank, you can sometimes save old insurance. When moving to a new document, you will have to terminate. If the mortgage insurance company is accredited in the bank you have chosen, you can draw up a new agreement. If not, you have to go to another organization.
5. Refuse title insurance
This — policy is voluntary, but still it is needed when buying secondary housing. It protects in situations where hidden owners and heirs claiming real estate appear. Example — selling an apartment bought in a marriage. Even if one spouse is indicated in the documents of sale, the second according to the law is still may qualify for housing. If, after purchasing real estate, the court declared the transaction invalid, if there is a policy, there is a chance to return the money. Such disputes, as a rule, arise in the first three years after the purchase. But if a person has been living in the apartment for many years, title insurance can be waived.
6. Consider whether it is beneficial to take out life and health mortgage insurance.
You may not use it, but it is likely that the bank will raise the mortgage rate — such conditions are prescribed in the contract. Ask to show the monthly payment schedule taking into account the increased rate. So you will understand what the loan overpayment will be. In some cases, it exceeds the amount of insurance, and then it is unprofitable to refuse the policy. It is also important to consider that all risks fall on the borrower. For example, if he seriously gets sick and can’t work anymore, the family will still have to pay a mortgage. BTech