Mortgage insurance can save borrowers up to 10,000 euros

Mortgage insurance serves to cover all or part of loan repayments in the event of unforeseen circumstances, such as death, total or partial disability, temporary incapacity for work, or involuntary unemployment. While not legally mandatory, it is required by almost all lenders to secure real estate projects and protect families.

As mortgage interest rates rise—reaching an average of 3.66% over 20 years in October 2026 according to broker Pretto—borrowers may face tighter financing conditions. Although interest rates are often fixed by banks, borrowers can reduce costs by comparing insurance contracts. Switching from a bank-provided policy to a competitive external contract can potentially save borrowers up to 10,000 euros over the life of the loan and may even improve the chances of securing financing.