Mortgage insurance is often misunderstood. There are two types of insurance related to mortgages. The first type - mortgage loan insurance - protects the lender in case the borrower defaults, and the second type - similar to a life insurance policy - protects the homeowner and family by making mortgage payments if the homeowner dies or becomes disabled and is unable to make payments.

        Mortgage loan insurance protects the lender in case you are unable to make your mortgage payments, and is therefore mandatory in Canada if you are purchasing a home with less than a 20 percent down payment. Offered by the Canada Mortgage and Housing Corporation (CMHC) and a few other private insurance companies, the insurance premiums for this type of insurance are typically amortized right into your mortgage, so you do not pay a lump sum upfront. Talk to us about how mortgage loan insurance can help you qualify for a new mortgage with less money down and with better terms, and how you can even save money on the insurance premium itself with a special CMHC discount for energy-efficient homes.

        The second type of mortgage insurance is mortgage payment protection for you - the homeowner - to help pay your mortgage in case of your death or disability. There are many types of mortgage payment protection insurance plans, available from any licensed insurance agent, and the monthly premiums are based on your individual situation.

        Please call me if you need more information about mortgage insurance, or about any other matters relating to a new or existing mortgage loan.