As a first-time homebuyer, chances are you’ve never heard of mortgage default insurance. More often than not, it isn’t until you’re sitting across from your lender that you learn about this expensive requirement. You see, in order to qualify for certain types of mortgage products in Canada you are required to be “insured”. While most insurance products are designed to protect your dependants in the case of an unexpected accident, mortgage default insurance actually protects your lender if ever you are unable to make your mortgage payments. It’s a strange concept for many property virgins, but one that should be discussed early in the homebuying process. Continue reading
Tag Archives: Mortgage Insurance
Is Your Home Underinsured?
Did you know that a large number of Canadian homes are underinsured? The following are six important steps to make sure your home is protected against the unexpected.
1) Know Your Policy And What it Covers
Your policy type should reflect your type of home and your needs. It’s important that you review your policy basics and have a good understanding of what you are and aren’t protected against. If you own an older home, or one that has special features (carved moldings or hardwood floors, for example), you will want to make sure you have special coverages in place to protect these items. Continue reading