In recent months, the Euribor's rise has cooled the fury of the mortgage company. It is true that the triggered inflation has reduced the economy. The level of 2019 will not be regained until 2024.
Despite the current economic situation, many people take out mortgages from banks to afford a home. The Organization of Consumers and Users has issued a notice to this effect that is sure to be of interest to many.
Can a bank require people to get home or life insurance if they take out a mortgage? The law permits entities to require the hire of an insurance policy in order to guarantee the loan repayment or to protect the guarantee.
As the OCU affirms they can't impose their insurance, it begs the question: As long as coverage is maintained, the consumer can choose the company with which he contracts.
The bank may discount the interest rate on their mortgages by referring to additional products. Contracting is not required in this instance. However, a series reductions in the interest rate will be applied to those who decide to contract these products. According to OCU, the closer the relationship, the better conditions are offered.
It is important to calculate if the insurance is worth the cost of the bank company's insurance, which is almost always more expensive in exchange for a lower mortgage differential.
The bank may require that you contract insurance in order to grant the loan. This must be stated in the deed. It will not be possible for you to cancel the contract while the loan remains in force as indicated by OCU's website.
The client cannot cancel compulsory contracting products or pay the premium. The entity also reserves the right not to contract the insurance premium and to pass the cost on to the client. You can change insurance to another company as long as the coverage is the same.
If the bonus was for the mortgage to contract a particular insurance with a company, cancelling that insurance or changing the company will mean you are not meeting the interest rate requirements.
Insurers often inform clients of the premiums that they will be paying after each renewal. The regulations don't require that this information be provided. Therefore, the only obligation an insurer has to inform the client about the new annual premium at the least two months prior to each annuity's expiration is to notify them of the change.
In most cases, the premium paid for the mortgage and insurance will not be reported.
OCU recommends that you review each year to determine if the insurance is still worth your time or whether it is more convenient to cancel the policy or change insurance companies. It all depends on the premium. Cancelling or changing insurance companies can be fun, even if you lose the bonus.