fbpx

Different

Insurances

Whether you are purchasing a home, renewing your mortgage or refinancing, knowing what coverage you have is something you should be familiar with at it pertains to your mortgage.

Mortgage Loan Insurance
Protects the Lender

Required when purchasing a home and the down payment is less than 20% or the mortgage balance is greater than 80% of the homes value. This is 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

Homeowners Insurance
Protects the Physical Property

Required for any home that is mortgaged. Coverage must be in place on or before the time of 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 current value of the home.

Mortgage Protection Insurance
Protects the Borrower

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.