Mortgage Insurance

Mortgage Insurance

Learn more about mortgage insurance, the one of the most ambiguous and least understood terms in the industry. Since mortgage insurance is very often confused with other types of insurance associated with home ownership, on this page we will explain the difference, help you understand it better, and learn more about different options available to you. Knowing and understand more about mortgage insurance will help you decide what coverage is appropriate for your specific needs.

When someone offers you a mortgage insurance, don't be afraid to ask what kind of mortgage insurance they offer, because sometimes even people in the industry use different terminology. In other words, mortgage insurance can refer to mortgage loan insurance, mortgage life insurance, mortgage protection insurance, depends who is talking. Let start with basic differences to clear up any confusion.


Mortgage default insurance, commonly referred to as "mortgage loan insurance" and sometimes "mortgage insurance" helps buyers buy a home sooner and with a lower down payment. So if you have less than a 20 per cent of the purchase price of your home you'll have to purchase mortgage default insurance. With this type of insurance a home can be purchased with as little as five per cent down payment for qualified borrowers.

Keep in mind that mortgage default insurance does not protect you as the homeowner, it actually protects the mortgage lender should you default on your mortgage payments. Read more about mortgage default insurance and make an informed decision before your purchase.

Mortgage Protection Life Insurance

Mortgage protection life insurance, also called "mortgage protection insurance" or "mortgage life insurance", and sometimes even called "mortgage insurance" is type of mortgage insurance usually offered by banks, lenders affiliated with banks, and some other financial institutions. Policy terms and conditions may vary by province and by financial institution, but in general is not good protection for you or your family and you should not buy it.

These kinds of policies equal to the mortgage amount you are taking and only cover your outstanding debt, meaning the payout gets smaller and smaller as you pay off your mortgage, which means your mortgage protection insurance policy shrinks. On the other hand, your insurance premiums stay the same through the insurance term, which means your payments stay the same.

The policy payout under a mortgage protection life insurance is payable to the bank or some other financial institution to discharge the mortgage, not to your chosen beneficiary. In other words, it works great for the bank – but may not be the best plan for you and your family. Find out more about mortgage protection life insurance before you decide which option works best for your situation.

Personal Life Insurance

Personal life insurance is the best option for financial protection of you and your loved ones in case the unexpected happens. There are various options available if you plan to use personal life insurance as your financial protection. You can choose between different types like: term life insurance, permanent life insurance, whole life, accidental death, disability and critical illness life insurance etc.

Life insurance can provide coverage allowing your beneficiaries to take care of your outstanding expenses such as: mortgage, car loans, credit card debt or day-to-day living expenses. You can purchase life insurance from insurance or assurance providers. Learn more about personal life insurance, get informed about it, than and ask for professional help to find the most cost effective and beneficial options for you and your family.

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Buying a home is beginning of an exciting adventure and for most buyers it is the biggest financial investment of their lives. Yet a great number of people follow emotional impulses to the exclusion of sound thinking when they make an offer on a property they want to buy. Read more...


Arranging to pay for that property you plan to buy is one of the most important financial decisions you will ever make. Regardless of how certain you are that you will get mortgage, it is always good idea to get pre-approved from the mortgage lender of your choice. Read more...

Your credit, income and down payment are 3 main factors that will be considered before you get approved for a mortgage.
One way to help boost your down payment is to borrow money from your RRSP.
Don’t make any big purchases before getting approved for a mortgage.

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