Mortgage Insurance

Mortgage Loan Insurance

For a large number of Canadian home buyers - especially first time home buyers - saving enough money for a down payment is the hardest part of becoming a home owner.

Mortgage loan insurance enables home buyers to purchase a home with as little as a 5% down payment. The amount of the insurance premium depends on the amount borrowed from the lender.

Mortgage loan insurance premiums can be paid in a lump sum or be added to your mortgage and included in your monthly mortgage payment. For more information, talk to your mortgage professional, or contact the following Mortgage Loan Insurance providers:

In mid September 2008 the federal Department of Finance issued the final set of parameters for the financial guarantee that applies to mortgage insurers.
Measures include:

1. Maximum amortization of 35 years;
2. Down payment required of 5%, although purchasers can borrow towards this amount;
3. Minimum credit score of 600 an adjustment from the previously published 620;
4. Previously announced limit of 45% for total debt servicing replaced with a 'principles' based approach;
5. Enhanced documentation requirements including income verification and up to date appraisals;

These changes came into effect on October 15, 2008.

Mortgage Life Insurance

Mortgage Life Insurance (Creditor Life Insurance)

Mortgage Life Insurance is designed to protect your family from the financial burden of paying off your mortgage in the event that something should happen to you.It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage is unable to make mortgage payments.

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