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The APR, the benchmark indicator for comparing two mortgage offers
It is customary to compare the nominal rates credit offers from banks to get an idea of the most advantageous mortgage. Yet it is the TAEG (old TEG) which allows the most accurate comparison.
But according to Securimut, the loan insurance change specialist, a subsidiary of the Aéma group, the APR still lacks efficiency and therefore reliability. Impossible, in fact, for him, to take into account all the differences that distinguish two loan offers, as reported by Capital magazine. One point is particularly problematic, theloan insurance, dont the weight in the whole operation is often misjudged.
Exclude APR insurance to better understand it?
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Securimut also points out the variations in contributions that may occur during the life of the contract. Since then, insure your mortgage can be very expensive during the first years or on the contrary, remain the same. However, on average, households keep their property for 8 years before considering a resale. This duration coincides with the average time required for the early repayment of a loan over 20 years. In other words, the first few years are essential for borrowers who must ensure they choose the most advantageous loan insurance.
In addition, there is another problem. To perfect their offers, some banks would not hesitate to mix the compulsory part of the insurance (death and disability guarantee for example) and the optional part (loss of employment), even if it means excluding this optional part from the calculation in their offers. . This results in a misleading APR. Securimut estimates the share of loan insurance that does not appear in the APR at 75%, compared to 50% previously.
So that borrowers can benefit from more clarity, Securimut simply wishes exclude APR insurance and that an indicator specific to theborrower insurance : the annual effective insurance rate (TAEA). Banks are already communicating on the cost of insurance in relation to the total cost of credit, but with too much discretion and without any real explanation, Judge Securimut.