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8 Things To Know About Mortgage Insurance

Posted onJuly 12/2017By

If you’re in the process of applying for a mortgage or starting to shop around for one, you’re probably thinking about how you can get a low mortgage rate. However, there’s more to getting a mortgage than the rate. There’s also mortgage insurance, which is an important part of getting a home loan if you’re having trouble coming up with a decent down payment. Many Canadians are not aware of what mortgage insurance is. Below you’ll find eight important things to know about mortgage insurance. This type of insurance protects the lender against default and not the homeowner. Mortgage insurance is designed to ensure the lender is able to recoup costs should you default on your loan. Mortgage insurance is mandatory for borrowers who can only come up with a down payment for their home of less than 20% of the total. Furthermore, down payments cannot be less than 5%.…

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Why You Need Mortgage Disability Insurance

Posted onDecember 05/2016By

Research shows that people are often more at risk of suffering a disability than dying during their working years. Disability prevents you from working to maintain your current standard of living, and so you need to replace the income you lost while away from work. While many disabilities may be temporary, some can also be permanent. Not only will you be unable to keep up your lifestyle, you will also be unable to keep up your mortgage payments. Disability mortgage replaces your income according to your monthly mortgage. Here are some concrete reasons to consider getting mortgage disability. You Are Self Employed A self-employed person depends entirely upon his/her own efforts to maintain an income and standard of living. Therefore, they are especially vulnerable to loss of income if they were to be unable to work even for a short time. These persons may not qualify for the level of…

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5 Benefits Of Mortgage Insurance

Posted onApril 18/2016By

Mortgage insurance is an insurance vehicle designed to protect the lender in case the owner of the mortgage is unable to pay for their monthly costs. But mortgage insurance can also work to benefit the homeowner as well. And in this latest article, our expert team highlights five of the top benefits of mortgage insurance. Access to Better Interest Rates Because of the protection mortgage insurance offers lenders, it then allows the lending company to offer homebuyers access to better interest rates. This works to consolidate the cost of the home for the buyer. Offers Access to the Marketplace for Many Buyers Homebuyers who are self-employed or don’t otherwise have access to steady income may also benefit from mortgage insurance. Mortgage insurance ensures that buyers outside the traditional marketplace can qualify for a low cost mortgage while keeping the lender’s interests protected. Mortgage Insurance can be Transferred Another advantage of…

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How Will The Recent CMHC Changes Affect Mortgage Insurance Premiums?

Posted onJune 12/2015By

On June 1st, 2015, changes will be made to mortgage insurance premiums. This change will affect mortgages where down payments of less than 10% are made. Mortgage insurance lets Canadian homebuyers purchase their dream home with a lower down payment. Prior to the CMHC’s changes, you were able to purchase a home with as little as 5% down payment. Mortgage insurance is in place to protect the lender from any loses incurred such as borrower default and foreclosure. What do the CMHC changes mean for me? If you have purchased a home after June 1st, 2015 with a down payment of less than 10%, your insurance premiums will increase by approximately 15%. The Canada Mortgage and Housing Corporation calculates these premiums through a formula that uses your loan-to-value ratio. Because insurance premiums are usually attached to your monthly mortgage payments, this 15% increase will not make a huge dent to…

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