The pension reform might have a significant impact for some borrowers. Insurers will no doubt have to raise their rates.
The pension reform – soon to be debated in a joint joint committee – might have a significant impact on mortgage loans, and in particular on insurance, taken out by certain borrowers. In question, inevitably: the postponement of the legal retirement age to 64 years. If the government bill is passed within days, insurers would then be required to raise their rates.
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This “perverse effect” of the reform, it is especially borrowers over 40 who are likely to pay the price. Overall, due to the postponement of the legal retirement age, borrowers will have to work two more years. Private insurers will have to take this measure into account and for good reason: borrowers might indeed find themselves in temporary or total incapacity for work over a longer period, explain our colleagues from Capital. In any case, these are risks that are covered by the insurer, as well as the death or the total and irreversible loss of autonomy of the person concerned.
The private insurers concerned
The online comparator Magnolia.fr affirms that the rates of borrower insurance might increase by 2 to 5%. In practice, private insurers will have to set the amount of contributions themselves. Banks that offer their own insurance on their side might absorb this price increase.
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The Magnolia.fr site offers an example. In the case where a 40-year-old man who lives alone borrows 200,000 euros over 25 years, the most advantageous quote that might be offered to him might reach 8,627 € (i.e. 29 € per month for the borrower). If the rates rise by 5%, the borrower will have to pay 1.45 euros more per month.
