Are you sick and still want to become an owner? Buying a home with health problems is another test to pass! Bankers are not philanthropists, their job is to limit the risks to the maximum. The main difficulty for you will be to find an insurer who will accept to provide the credit. To borrow with health problems, the state created the Perase convention that gives access to mortgage loans for sick people.
The refusal of insurance to borrow when you have a serious illness
If you want to buy a house or change your car, and when you can not afford cash, you have to take out a loan. Whether you are sick or in good health the rule is the same: you will have to show your bank that you earn each month what to pay the monthly payment.
But if it was enough to repay the credit… Because you know, you must also take insurance that will cover you according to your choice for:
- Job Loss.
Is insurance still willing to insure?
You see what I mean ? The problems begin when you have something serious. Insurers do not like health problems because they make them take risks and it’s not good for their margin.
Most often, they will refuse the file, or apply a surcharge that will make credit impossible to subscribe under these conditions.
The surcharge that can go from 15% up to 1000%
To assess the risk to your illness, the insurer will have you examined by a medical consultant. This one will make in its diagnosis the risk of excess mortality that you have compared to a person of the same age in good health, without taking into account the new available treatments which can come to make change this figure.
For the insurer, it’s not whether or not he will insure you (provided you have a 99% chance of surviving 1 year), but to be able to quantify the amount he will bill. But between us, who can bear a premium of 300% in the editing of a real estate file?
Must we tell the truth to insurance?
The temptation is great to try to pass for someone who is not so bad. But hiding your illness can put you at great risk because if you need to play your insurance, the contract will surely be void when the insurer will notice the deception by reading your medical file.
Anyway, far from me the idea to advise you what to do. Especially the situation of each is different, as well as the ability to cope with repayment deadlines.
So how to get a loan after cancer by telling the truth?
How to get your mortgage when you’re sick? Credit can not be taken without insurance. If you want to make a real estate purchase while you are still in care, there are not 36 solutions: you have to go through the Perase convention.
The mechanism will be that of guaranteeing the loan contracted over the long term. Here is how it works.
The Perase convention to insure with an aggravated health risk
Before the Perase convention, it was double punishment that applied to sick people: health concerns + refusal of credit. Since 2007, this has changed in part, and the signatory banks have committed to providing reasonable death and disability insurance.
The bank remains the financial partner of the operation
What does Perase mean? Insure and Borrow with an aggravated health risk. Which means, concretely, that a banker can not close the door in your face, from the moment he is a signatory of this agreement. Even if you are seriously ill, you can make a credit.
Banks therefore agree to play the game and take a little more risk than a person in good health. But that does not mean that there will be no premium.
It’s just going to be limited. A new Perase agreement is expected to be signed soon to give more information to borrowers and allow them to borrow larger amounts through this scheme.
What has Perase changed for the sick?
Already, insurers do not look at them the same way, and take into consideration the files, whereas before, they had the tendency to mislay them… As for the patients, they are no longer afraid of wanting to become owner and to borrow for that.
The new numbers:
- Proposed death insurance for customers who have an aggravated health risk: 93%.
- Acceptance of the proposal by the insured: 91%.
- Insurance proposal for cancer: 50% (many contracts still excluded cancer despite changing mentalities).
- Insurance proposal for breast cancer: 84%.
Which credits are concerned?
It is possible to finance the acquisition of his principal residence with the Perase agreement, as well as his entrepreneurial desires. The creation of a company falls within the scope of this guarantee system for sick people.
Perase does not apply to all loans of money
Thus, consumer credit, revolving and renewable are not affected, so as not to aggravate the personal financial situation of a sick person.
When applying for a loan and filing the file, it will be necessary to be precise when the destination of the money borrowed. Is this a loan for a new car? If so, it must be indicated.
The right to be forgotten
If you have conquered cancer in the past, know that you do not have to declare this disease if it is more than 10 years old, and if you have not relapsed since. The rule is valid for cancer but also for hepatitis C. And if you have experienced these diseases as a minor, the time is reduced to 5 years.
If you make sure under the Perase agreement, know that the insurer has the obligation to inform you of this right to be forgotten, giving you including a schedule of deadlines, critical illness illness.
The rules to benefit
1. The medical questionnaire
For the loan of a large sum of money, it will be necessary to answer a medical questionnaire, unpleasant but obligatory stage.
Good to know: if you borrow less than 15,000 euros and you are not yet in his 50s, there will be no health questionnaire to qualify for death insurance. For this, the reimbursement must not exceed 48 months.
A person over 70 can not be granted a loan with these conditions.
3. The amount
For the moment, it is not possible to borrow more than 300000 euros for the purchase of an apartment or a house.
Perase has other advantages over insurance
1. You will save time
In addition to the modalities mentioned above, it should be noted that arrangements for the treatment of cases are planned for the sick. Thus, processes to accelerate demand are put in place.
2. Your illness will remain confidential
The bank or insurance company involved in the transaction has a duty of confidentiality. It can not reveal to third parties your state of health.
3. A third person can act as intermediary between you and the bank
In the case where there are problems of “understanding” or disputes between the bank and the borrower, the possibility exists to seize a mediator.
How to choose your insurance and your credit?
Even sick, you have the right to play the competition, and most importantly, you must do it! You should know that it is not compulsory to take out insurance where the credit has been made.
However, you will need to provide the bank with the following information about its insurance:
- Company Name.
- File number.
- Guarantees included in the price: that of the death remaining the most important, especially in that it protects the heirs.
I advise you to compare offers
Before you decide to buy, or choose a bank to borrow, especially if it is a large sum, it will be necessary to go around the banks of the place and go to all the banks (the main ones ) comparing the rates and surcharges that may apply to your illness.
Rate comparators exist on the net. Easy enough to use, they allow you to get a first idea of the difference that can exist between two banks and it is sometimes huge!
The most serious diseases that can prevent a mortgage
I want to develop here serious diseases that can “taint” relations with his bank when it comes to credit, even if it is only 20 000 to buy a car.
Depending on the pathology you have or have suffered, the rules may vary. The list below lists the major critical illnesses. Your insurance and your right to forget disease by disease:
1. Borrow HIV-positive
If discrimination is prohibited in most Perase of social life, especially as regards health status, it does not concern insurance. We must therefore distinguish the information given to his bank, and the information given to his insurer.
For the latter, it will be necessary to fill out a health questionnaire, and possibly to lend to a meeting with a doctor and additional examinations. Beware of misrepresentations, they may result in the nullity of the contract.
Surprising : the insurer is not allowed to go above 100% surcharge.
Right to be forgotten : since we are not cured of this disease, HIV does not fall into this category.
Perase is it also for HIV-positive people?
HIV-positive people who seek to borrow have the right to do so, and to be insured through Perase. If the bank refuses to insure you, you have to go to other insurance companies.
In order not to waste too much time, especially in case of real estate purchase, it is better to apply to other insurers before having the answer of his bank.
For those who do not have the opportunity to run after insurers, know that there are brokers who are specialized in loans for sick people.
2. Borrow after a cancer
Having cancer and wanting to make a loan is a double challenge: cure and convince your banker! But borrowing with a serious pathology is possible, especially for people who have gone out, even if the health risk remains important for insurance companies.
A medical questionnaire will have to be completed when you take out your loan, except for loans of less than 15,000 euros.
Cancers that can be a problem for your insurer:
- Carcinoid tumor.
- Hodgkin’s disease.
- Non-Hodgkin’s lymphoma
It is part of the “black” list of insurers, that which concerns the aggravated health risks. Prepare to suffer 1 of these 3 outrages:
- A surcharge.
- One or more exclusions in the guarantees.
- A refusal.
Access time : 3 years, except for stage III, 6 years.
The health questionnaire
You will have to attach the last results of your examinations (the operative report and the histological examination) if you do not return within the deadlines of the right to be forgotten. Must be there:
- Thyroglobulin level.
- The level of anti-thyroid antibodies.
- The calcitonin level.
- The dosage of ACE.
- Between 3 and 5 years: 150 to 200% without the IT and PTIA guarantees.
- Between 6 and 10 years: 100 to 150% without the IT and PTIA guarantees.
- After 10 years: tariff and normal guarantees.
If you have a tumor, you will quickly realize that home loan and cancer are not the best friends in the world. In order not to have to lie about your health or make a consumer credit, here is what you need to know.
6 things will interest your insurer before you make a proposal:
- The size of your tumor: below (or above) how many centimeters.
- Its type: G1, G2, G3.
- Its location: is it well confined to a particular place.
- Cells: Are they big or small?
- Its stage of progress: T1 or T2.
- The last biopsy.
3. Get a bank loan with diabetes
For an insurer, diabetes is also one of the aggravated risks that it considers to be a vascular disease and it can lead to a surcharge and an exclusion of some guarantees.
The health questionnaire
The medical advisor will ask you:
- When did your diabetes appear?
- What treatment do you take?
- What are the latest results of your glycated hemoglobin?
- What arterial complications have you had?
- If you have any urinary, transit or sexual problems.
It will be necessary to provide:
- Your last cardio-vascular assessment.
- Your last glance at the ophthalmologist.
- Your last kidney checkup.
The borrower insurance contract of the French Federation of Diabetics
This is a contract set up with the Benerias partnership. To benefit, you must be a member of the federation before and during the loan, and pass a diabetic assessment every year.
4. Borrowing after a stroke
Waiting period after stroke : 1 year.
Guarantees : IT and PTIA refused.
Surprime : between 100 and 150%.
The Stroke Health Questionnaire
- Indicate if your stroke is ischemic or following aneurysm rupture.
- If your triggering factor has been processed.
- If you still have rehab sessions.
- If you are still embarrassed in your everyday life.
- If you drive a “normal” car (without special arrangements).
- Your last neurological assessment.
- Your hospitalization report during your stroke.
Is the loan 100% guaranteed?
We are not in the best of all worlds, and despite the Perase convention, files can be refused by the banks in case of serious illness (in particular).
When we know that a premium can reach 300%, we understand better why some patients give up the idea of buying.
Where does it cost the least to insure when one is seriously ill?
Do not think they are all worth it. Each insurer at its cost grid with rates that are not the same. Banks are far from offering the best prices for these diseases. Same thing for risk acceptance.
I advise you to analyze the competition, and go through an external insurer. I remind you that the first year of your credit, you can change insurance when you want without costing you a cent. And since this year, it’s the same thing for a cancellation of the insurance on the anniversary date of the contract.
What to do if the loan is refused?
If the credit is not granted because the bank does not want to insure the loan, you must start by asking that your application be reconsidered. For this, contact the Common Insurance Office. If that still does not happen, you have to hire a broker.
Credit: pay attention to over-indebtedness
In the end, borrowing when you’re sick is nothing like a health walk. The word game was easy, but better to play down. Getting a home loan in these conditions is not impossible. But it’s a fight to fight.