Getting a house is one of your largest financial transactions considering the way mortgage can be quite a huge money burden also. Have you ever thought of protecting it? A house is necessary in terms of shelter, security and safety of your family. If you have a mortgage loan, you must have a mortgage life insurance that will take care of it in case of the sudden demise or inability and you can no longer pay off the mortgage.

What is Mortgage Life Insurance?

Mortgage Life Insurance protects the mortgage if there is untimely demise; it takes care of mortgage balance at the time of death/disability. Here is your piece of safeguards and reassurance knowing your loved-ones will remain forever in your home. You can actually avail of mortgage insurance Canada specifically with a bank or financial institution along with your mortgage request. It is readily available in Canada offering an incredible number of homeowners the security they need.

Mortgage Insurance Rates

The mortgage insurance rates are in general based on your actual age upon application and the amount of coverage. Nevertheless, the rate is not affected through the entire duration of a payment as a consequence of age or even change in condition. The fees are calculated as a percentage of the loan and will depend on the size of your current down payment.

How much can you afford? A basic question but necessitates time to figure out the amount of home finance loan and costs you can afford. Use mortgage online calculator to identify your probable monthly installments for different home prices and interest rates.

Mortgage life insurance repayments are part of the mortgage payments together with proper realignment is done as necessary.

Mortgage Insurance Disclosure Regulations

The Canadian government has introduced the Mortgage Insurance Disclosure Regulations to help consumers understand the role and purpose of mortgage insurance.

As stated on “General Information on Mortgage Insurance”:

5. Every institution that charges borrowers an amount for mortgage insurance must disclose

·         (a) the coverage provided by the mortgage insurance, including which party is protected by the mortgage insurance and which party pays for it;

·         (b) the manner in which the amount that the institution is being charged by the insurer for the mortgage insurance is calculated; and

·         (c) any other information in respect of the mortgage insurance that could reasonably be expected to have an impact on the borrower.


Canadian Mortgage Insurance Laws

If you plan to take on a mortgage, you should know the different Canadian mortgage insurance laws that states:

·         Borrowers must be able to meet the financial standards of a 5 year, fixed rate mortgage regardless if they choose a lower rate or shorter term. Borrower must also pass the Gross Debt Service (GDS) Ratio and Total Debt Service (TDS) Ratio – these two measures assess the financial outlook based on your current debt.

·         The minimum down payment required is 5% of the actual home purchased price. The Canada Revenue Agency allows first time home buyers to make a tax-free withdrawal to a maximum of $25,000 from their Registered Retirement Savings Plan (RRSP) to be used as down payment. However, the condition is to return the money into the RRSP in less than 15 years.

Work with a reliable and knowledgeable financial advisor, broker or agent who will help you understand about mortgage life insurance, rules and regulations. Choose a financial institutions that offers various insurance services for all Canadians. You can access them online and get personalized customer service and low-cost mortgage life insurance quote conveniently at home. Your financial adviser will help you find the best but affordable policy that protects your interest and your home.

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