During a bank loan, the client must provide a solid guarantee to the organization to accept the request. This guarantee results in a good value asset or a borrower insurance.
These two types of home loan insurance each have their qualities and flaws. We talk about group loan insurance when it is offered by a subsidiary of the bank. A partner group is responsible for offering the guarantees sought by the lender in return for a contribution. In the past, the client was forced to choose group loan insurance to receive financial assistance from the creditor. Fortunately, this practice is over and the borrower is now free to choose his mortgage insurance provider. This product is characterized by its practical side since it is no longer necessary to look elsewhere. Its only drawback lies in its cost. The mortgage insurance offered by an insurer linked to the bank does not take into account the profile of each client.
The individual insurance is none other than an insurance of real estate credit subscribed outside the bank. The client is insured by an insurer that has no affiliation with the lending institution. Credit insurance is distinguished by a flexible rate that varies according to the needs and profile of the borrower. The contract is also very popular today thanks to this feature. The only downside is at the level of guarantee equivalence. Indeed, the bank has the right not to validate credit insurance when it does not provide the same guarantees as its group insurance. In addition, the presence of a multitude of offers available on the market can disorient the borrower when selecting an appropriate contract.
There are two ways to make no mistake about the selection of the mortgage loan currently. The first solution is the use of a comparator identical to borrower . The site compares the existing offers and groups the information obtained from the user’s profile. The second option is to hire a mortgage insurance broker . The profession of the specialist is to assist his client in the selection phase of a borrower insurance. In fact, the professional’s network of contacts provides him with all the information concerning the most affordable credit insurance of the moment. However, it is better to use the comparator on borrower.io because the tool is offered free of charge while the broker will claim a fee for its services.