Required when purchasing a home and the down payment is less than 20%, or the mortgage balance is greater than 80% of the home's value. This reduces the risk for the lender and allows a borrower to purchase a home with a low down payment. The premium is added into the mortgage at the time of purchasing and is only paid once. The three insurers are:
CMHC
Sagen
Canada Guaranty
Required for any home that is mortgaged. Coverage must be in place on or before the purchase and continue for the duration of the mortgage. Coverage such as fire, flood and replacement would all fall under this category. It is important that your policy is updated regularly and reflects the current mortgage lenders' information and the home's current value.
This protects the homeowners in the event of death, serious accident, or illness that may leave you or your partner unable to work and affecting your ability to pay the mortgage and/or property taxes. With employer and private polices only covering lost income, this coverage includes your mortgage balance, payments and property taxes.
