What is Mortgage Insurance?
YOU’VE FINALLY FOUND THAT DREAM HOME. MORTGAGE INSURANCE CAN HELP MAKE IT YOURS.
The combination of rising home prices, increasing taxes and unforeseen expenses related to homeownership can make saving for a 20 per cent down payment very difficult. However, with help from a lender or mortgage professional, along with the solutions provided by Canada Guaranty, your dreams of homeownership are well within reach. Find out how mortgage insurance can help unlock the door to your dream home, even sooner.
MORTGAGE INSURANCE INCREASES OPPORTUNITIES FOR HOMEOWNERSHIP
Mortgage insurance offers you affordable options for purchasing a home. The innovative products developed by Canada Guaranty can help you become a homeowner with programs that are tailored to suit your individual needs.
WHAT IS MORTGAGE DEFAULT INSURANCE?
Mortgage default insurance, commonly referred to as “mortgage insurance” helps Canadian consumers buy a home sooner and with a lower down payment. In fact, for qualified borrowers a home can be purchased with as little as five per cent down.
Mortgage insurance protects the lender and investor – not the homeowner – from losses related to borrower default and foreclosure. The cost of mortgage insurance depends on two factors:
- The type of mortgage applied for
- The amount of the down payment
Your lender or mortgage professional can provide you with specific premium costs and benefits of using mortgage insurance for your unique loan.
Mortgage insurance is often confused with other types of insurance associated with homeownership. Knowing the difference will help you understand what coverage is appropriate for your specific needs.
MORTGAGE INSURANCE IS NOT THE SAME AS:
- Homeowner/Property Insurance: A form of property insurance designed to protect the individual’s home (or possessions in the home) against damages, including loss, theft, fire, or other unforeseen disaster.
- Mortgage Life Insurance: A type of insurance designed specifically to repay any outstanding mortgage debt in the event of homeowner death or long-term disability.