If your bank required you to purchase a single-premium insurance policy linked to your mortgage with its insurance company, you may be entitled to claim reimbursement of:
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It is an insurance policy where the premium is paid in full upfront, and the bank adds that amount to the principal of your mortgage. This increases both the loan amount and the interest ultimately paid.
By adding the premium to the mortgage principal, every installment of the loan includes interest on the insurance premium. Over the medium term, this significantly increases the total cost of the loan and inflates your debt without improving coverage.
Yes, it is legal. The law allows the bank to require insurance linked to a mortgage and for the premium to be paid in a lump sum. However, the bank cannot force you to purchase the policy through its own insurer: you have the right to choose which insurance provider you want to take out the insurance with.
It depends on the amount of the premium and how long you have been paying the mortgage. Generally, recoverable amounts range from €5,000 to €40,000, considering both the unused portion of the premium and the excess interest generated by its financing.
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