Banks can no longer “hold you hostage” with a credit discount

There has long been criticism of the way banks use mortgage loans to bind customers. If people take out fire or outstanding balance insurance with the same bank, they can get a discount on the loan. Depending on the banking sector, this discount is usually between 0.1 and 0.2 percent. But this discount is conditional, and customers are bound by these insurance policies. If after a while they want to get a different, better or cheaper insurance policy, they lose that discount on their loan.

Economy Minister Pierre-Yves Derman has now drafted a bill to combat “hostage-taking by the bank”. It will be at the government table today, where it will certainly be approved, according to Dermagne.

More competition

The new arrangement gives customers their freedom again after a third of the credit term. Anyone who gets new insurance elsewhere since then will not be able to lose the rebate on the mortgage loan. In addition, customers will also be able to transfer their bank account to another bank immediately after withdrawing credit.

Originally, Dermagne wanted the scheme to be applied to all contracts, including mortgage loans from the past. But after negative advice from the National Bank, it will only apply to new contracts.

According to Dermagne, his bill is not only good for borrowers, but will also ensure more competition among fire insurance providers. It found support in a recent report from the FPS Economy Price Monitor, which also questioned the sales of the current bundle.

Wait another eight years

Aankoop Test believes the bill is a huge step in the right direction. “Competition will be able to play more, and that’s good for consumers. Although many borrowers will still have to wait eight years, because many loans now last for 25 years. We were hoping For two years”. By the way, we do not expect that banks will stop offering discounts. There are already banks that give their customers the opportunity to change insurance after a while. In the end, package sales will still be possible. “

In banks they are less happy with the plans, because of the “completely unnecessary”. According to Febelfin spokeswoman Isabelle Marchand, the current rule has been around for thirty years and there are hardly any complaints. “It is also a very transparent agreement, in which the customer knows what they are signing for. They are free to assess things beforehand.”