When you purchase a home in Canada, it’s one of the biggest decisions and investments you’ll probably ever make. Therefore, you’ll want to ensure that your large investment and your family is protected financially in the future, since life comes with many uncertainties.
In Canada, there are three different mortgage insurance providers:
● Genworth Financial Canada
● Canada Guaranty
You can ask your mortgage broker with insurance provider they’d recommend for you, have them provide more information on various the insurances offered by these companies, and find out how each one works.
Mortgage Protection Insurance (Life & Disability)
A large majority of Canadians are uninsured. Nearly 45 percent to be exact! This number includes both mortgage and life insurances. Although many people worry about their families when they consider what might happen when they die, they still remain uninsured. Pre-deceased family members may be left struggling, making mortgage payments on their own when the uninsured spouse dies.
Mortgage Protection Insurance can prevent this from becoming a reality, as it would pay off the remaining balance of your mortgage in the event either spouse’s death. At My Milton Mortgage, one of Dominion Lending Centres Top Producers, we offer mortgage protection insurance with great features. The insurance we offer is much better than traditional bank mortgage insurance. Our protection insurance includes:
● Portability, which means no loss of coverage or re-qualification at renewal time
● Premiums that don’t increase due to health concerns or age
● Both life insurance and total disability insurance protections
● Protections in the event of a death, serious accident or illness
Mortgage Loan Insurance
Mortgage loan insurance is not the same as mortgage life insurance. Since lenders require mortgage loan insurance when you make a down payment of less than 20 percent for your home purchase, it’s a way to protect lenders in case of mortgage default. This insurance allows home-buyers to buy homes with as little as 5 percent down, and similar interest rates to those who make a 20 percent down payment.
You lender will pay an insurance premium so that you can obtain mortgage insurance and they will pass this cost onto you. Payable premiums can vary depending on the purchase price of your home, this is a certain percentage. You can either make on lump sum payment for the premium, or you can be added to your mortgage. It will then be included in your monthly payments each month.
To apply for or learn more about Mortgage Protection Insurance contact a professional mortgage broker, who can walk you through the ins-and-outs of your mortgage life insurance, the costs and get the instant coverage you need.
To learn more about mortgage products, insurance or any other financial matters, contact us today.