Mortgage Insurance is a topic often missed or skipped over, but is just as important as your mortgage itself! It is very important that you ensure you, your family, and your home are protected during times of difficulty.

There are several types of insurance that you will encounter during the mortgage process – they are all very different and it is important to understand what they are!

  1. Homeowner Insurance is something all homeowners must have, and is similar to what you had with tenant insurance as a renter. This covers losses and damages to your home, along with furnishings and other assets in your home covered by your chosen policy. We can provide an instant quote for you at the click of this link
  2. Mortgage Default Insurance, commonly known as CMHC insurance (although there is also Genworth and Canada Guaranty), is something you must obtain if you purchase your home with less than 20% down, or to access special lending programs through these insurers. This insurance protects the lender should you not be able to make your payments and default on your loan. This allows you to purchase with as little as 5% down for your primary residence, for an immediate family member, or for a 2nd home as long as the property value is under $1M. We handle this for you automatically during the mortgage process.
  3. Mortgage Life Insurance protects YOU through life, disability, and critical illness policies. It is this type of insurance that we are going to take a deeper look at here.

75% of Canadian households say they would have difficulty paying everyday living expenses like their mortgage if the primary breadwinner was unable to work, or in the worst case, passes away. Mortgage Insurance is a simple and convenient way to protect yourself and your family’s future with disability coverage that will pay your mortgage payment (and other payments such as property taxes and loans depending on the policy you choose) should you not be able to work, and will pay off your mortgage with a Group Mortgage plan, or pay a chosen beneficiary your chosen amount with Term Insurance in case of loss of life.

Most of us depend on insurance through our employers, but these coverages are dwindling with rising costs, and we are not covered should we leave this employer by choice or otherwise. When starting with a new employer, there is no coverage during the probationary period, and you are having to qualify at a higher age and potentially less healthy condition, all which means higher premiums as you are starting a new policy.

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We offer two types of mortgage insurance, both of which are portable between lenders, and from home to home. This is VERY important as you will want to have the ability to change lenders when money saving opportunities arise, or when you want a product that a different lender can provide. If you have a policy through a specific bank, this is not portable, and you will need to requalify at an older age and potentially less healthy condition, which means higher premiums if you can qualify at all!

Both of these options also underwrite at time of application, not at time of incident. This is extremely important as you have the confidence of knowing that as soon as you pay your first dollar toward your policy, you will be covered should need the coverage.

    1. Manulife Mortgage Protection Plan (MPP)

      MPP offers a group life insurance policy which will allow their family or dependents to pay off the mortgage on their home should something tragic happen to them. They also offer disability, which would cover your mortgage payment and if you choose, your property taxes should you not be able to work. Please contact me for specific details.

    2. Assumption Life

      Assumption Life offers term life insurance (meaning payout is not a declining balance, and you choose the length of term), where you can choose your beneficiary, instead of it automatically being the lender. This gives you the freedom to choose where the money would go. They also offer disability, with the flexibility of adding additional liabilities to be paid monthly should you not be able to work. Assumption Life also offers critical illness insurance, which would pay you a lump-sum benefit determined by you, should you be diagnosed with any of the 16 covered illnesses. This can be an absolute life-saver when facing additional expenses such as time off work and treatment costs. This is not offered by any banks.

I will walk you through the options and help you determine what coverage makes the most sense for you, looking at the differences in coverage and costs, so you can make the best decisions for you and your loved ones.

Call NOW or email me personally to discuss how best to protect your most important assets!

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