The Smartest and Safest Mortgage Insurance in Canada

If you started your search for mortgage insurance Canada online, it was probably the wisest move you could have made. Finding a competitive rate for your mortgage insurance in Canada is easy when you use the Internet.

Mortgage insurance in Canada is a juicy topic these days. The denial of claims based on “fraudulent” representation has been a blow to families already stunned by the loss or disability of a loved one. In some cases, borrowers are denied on the basis of not checking “yes” to having a breast exam in the past five years.

Keep in mind there are two types of insurance. The type that most borrowers pay for is called collective or group insurance. This type of insurance is carried by the lender. The bank or lending institution draws up the policy, and they aren’t required to be licensed or trained.

In private mortgage insurance, the agent is a licensed broker or dealer that is in a competitive field trying to offer the most reputable and affordable option out there. More borrowers are turning to this type of policy because they are the carriers. Plus, there are fewer loopholes when you are dealing with a licensed professional.

Until recently, most borrowers blindly did what agents told them was required of them. Canadian laws state if you are paying less than 20% of the home value out of pocket, you need to carry mortgage insurance. When a homeowner purchases insurance, they become eligible for a loan worth 95% of the market value.

With the amount of money that you save and the peace of mind that private mortgage insurance in Canada offers there seems to be no other viable option. By applying the amount of money you save to your mortgage, you could cut as much as 3 years of a 30 year loan for $150,000 with 12.9% interest. That’s savings worth researching!