Mortgage insurance protects both you and the lender in the event you can’t make the mortgage payments. Lenders are aware that lives can change significantly over the typical 25-year mortgage term. Ours lives are unpredictable. Sometimes we are thrown curve ball, like an illness or injury that you may not recover from or are unable to return to work. The right insurance or combination of insurance offers you peace of mind that your expenses, like a mortgage, are covered if you experience such a challenge.
This differs from the insurance a lender typically requires you to purchase, if you down payment is less than 20% of the properties purchase price. Most commonly this is purchased through Canadian Mortgage and Home Company (CMHC). The purpose of this insurance is to protect the lender (not you!) if you are unable to make your mortgage payments.
1. Lender provided Life Insurance through (CMHC) which has the lender as the beneficiary;
2. Personal Disability Insurance which is a form of income replacement for the wage earners; or
3. Personal Life Insurance on the wage earners, which names their spouse and/or family as the beneficiary.
Submitted by Warren Turner B.Sc., B.Ed. TurnerKEY FINANCIAL Services Phone: 780.885.4572
