Borrowing despite a health problem: solutions exist
It is preferable to solicit as many credit institutions and insurers as possible to try to get a loan if you have or have had a health problem. The AERAS agreement may be a solution of last resort.
The question is often asked: can you take out a credit when you have (or have had) a serious health problem (cancer, multiple sclerosis, stroke, heart and psychological problems, etc.)? Don't worry, it's entirely possible! As long as you are patient and act methodically. If you are content to go to just one bank (and its home insurance), you can often face a categorical refusal from the credit institution. In this area, using a broker is by far the best solution.
" You should not hesitate to use the competition. The more insurers clients approach, the greater the chances of unlocking complex cases. However, it is precisely our strength as brokers to be able to submit the file of a client who has had a health problem to a maximum number of insurers. The challenge is to find a level 1 (standard risk analysis) or level 2 (medical examination) solution while avoiding level 3, i.e. the AERASagreement. In the majority of cases, this results in a refusal. In 2017, 80% of the applications submitted to the AERAS agreement were refused*", estimates Pierre Thunus, director of Valorama**, the broker specialising in loan insurance.
The convention AERAS ? It was introduced in 2007 to facilitate access to credit and loan insurance for people who have or have had a health problem. The acronym precisely stands for "s'Assureret Emprunteravec un Risque Aggravéde Santé". This agreement is intended for people whose state of health does not allow them to obtain loan insurance under classic conditions (without a rate increase or exclusion from covers).
Indeed, borrower's insurance, which is not mandatory in theory, is systematically required to protect the lender in the event of the borrower's default, but the insurance also protects the borrower and his family. Indeed, in the event of death or disability, the insurance company will be responsible for reimbursing the institution that granted the loan.
Be careful, you are not obliged to take out group insurance from the bank that granted you the loan. You can apply directly to a third party insurer, as long as the proposed contract has a level of cover equivalent to the group contract. This is where competition between financial institutions comes into play.
Strict conditions to be met in order to submit a file
If the previous steps have failed, you can then submit a file to the convention AERAS provided that you respect certain conditions. Among the loans concerned eligible, these are most often property loans for the purchase of a home, but loans taken out for renovation, interior fittings or the construction of a house are also eligible, as are consumer loans. Please note that bridge loan loans are excluded from the scheme. For professionals, eligible loans may concern the acquisition of premises and equipment.
In order to submit a file, you must meet the following conditions:
- For a crédit immobilier, the amount of the loan must not exceed 320,000 euros and the age of the borrower at the end of the loan must not exceed 70 years.
- For consumer credit, the amount of the loan must not exceed 17,000 euros and if the borrower is aged 50 or less. Finally, the duration of the loan must not exceed 4 years.
In addition, your household income must be less than or equal to :
- 1 times the Social Security Ceiling (PASS) if your tax household is composed of 1 share
- 1.25 times the PASS if the number of shares in your tax household is between 1.5 and 2.5
- 1.5 times the PASS if the number of shares in your tax household is more than 3
Be aware that your doctor can help you fill out the health questionnaire. However, only you will sign it and take responsibility for the answers given, which must remain strictly confidential. As such, it is not recommended that you seek help from a financial advisor to complete the questionnaire. The questionnaire will be given to you in person and you must send it to the insurance company's medical advisor.
The right to be forgotten: an important point
The right to oblivion is recognized. When you fill in the medical questionnaire, you have the right not to declare an old cancer in two specific cases:
- If the cancer was diagnosed before you turned 18 and the treatment protocol has been completed 5 years ago and no relapse has occurred.
- If the cancer was diagnosed after your majority but the treatment protocol has been completed 10 years ago without any relapse.
What is the response time?
After studying your file, the insurer will give you its answer within 5 weeks (3 weeks maximum for the insurer and 2 weeks for the bank). In case of agreement, the insurance quotation cannot exceed 1.4 points more than the total effective rate (TEG) of your loan. Please note that the insurance agreement will be valid for four months. In the event of refusal, the insurer must justify the reasons that led to the rejection of your file. You can then refer the matter to the mediation commission of the agreement AERAS to try to find an amicable settlement.
If you are eligible for the zero-rate loan, you should also know that the premium increase required for the insurance will be fully covered by the institution that grants you the principal loan. The only condition: you must be under 35 years of age at the time you take out the loan.
* : according to Valorama
** www.valorama.fr; tel : 03 26 87 82 05
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