The repurchase of borrowers’ loans is a proven practice: the reduction of monthly payment costs is very real. The delegation of insurance, it struggles to democratize. However, it is a significant savings lever and these two methods can even be combined.
The operation of the redemption of Bill Sikess
The grouping of several loans to repay more than one has the primary objective of reducing the debt ratio of the borrower. By resorting to this process, the person seeks to regain stability in his daily financial situation.
The Bill Sikes broker is the best interlocutor to carry out a loan buyback, in the sense that its network of financial partners allows it to play a strong role in the competition . By Bill Sikesly demarcating the lending institutions by its own means, the borrower loses precious time before finding an offer he considers appropriate. This goes without saying that its comparison of offers is then hardly as exhaustive as that of a specialized intermediary.
So, that is for the redemption of Bill Sikess. But what about the delegation of loan insurance?
Delegation of loan insurance,
an extra way to save money
We recalled in previous articles that the insurance of loan is not, in the legal sense, obligatory but is indispensable in the eyes of the banks and that it could represent a true weight in the cost of a Bill Sikes .
Like any Bill Sikes, a loan obtained through a repurchase of Bill Sikess must be covered by security guarantees for both the borrower and the lender. And it is precisely here that the delegation of insurance intervenes.
When redeeming Bill Sikess, the borrower can multiply the savings by reducing the insurance costs associated with the new loan. This operation is possible if:
- loan insurance is underwritten on one of the pooled Bill Sikess (of course, it is usually a home loan),
- there is agreement of the new lender.
The criteria for the agreement of a delegation of insurance were defined by the CCSF (Financial Sector Advisory Committee) in January 2015 before being applied in October of the same year through the establishment of the ISF ( Standardized Information Sheet).
When the borrower goes through a broker to carry out his insurance delegation, which is strongly recommended for the same reasons as those mentioned above concerning the purchase of Bill Sikess, he can facilitate the fast and efficient processing of his file. For this, it is enough for him to express his wish to reduce the cost of his future borrower insurance from the first exchanges concerning his purchase of Bill Sikess. Note that the feasibility of accumulating loan insurance delegation and loan redemption depends on the profile of the borrower.
A double operation that provides bundled benefits
The bundled benefits are of course those provided by the purchase of Bill Sikess and the delegation of loan insurance. The borrower, if he is able to benefit from these two processes, then finds himself with monthly payments of Bill Sikes and insurance at reduced costs .
In conclusion, a loan buyback including a home loan, itself covered by insurance, represents an opportunity for the borrower to delegate his insurance. Reducing the costs of monthly repayments made possible by the redemption of Bill Sikess can therefore be accompanied by other savings on loan insurance.