Everything You Need to Know About Mortgage Insurance

Everything You Need to Know About Mortgage Insurance

Mortgage Insurance can be your savior! Read on to find out more about mortgage insurance.

When purchasing an insurance plan, you get an option called mortgage protection. This plan works to protect both your investment and your family in the tragic situation of your death.

A Mortgage Insurance is designed to pay off your Mortgage in the event you pass away. This can help your family manage their finances better

How does one determine if he needs Mortgage Insurance?

 Most borrowers who have less than 20% down payment available tend to go for Mortgage Insurance. This helps them secure their Investment in a better manner. The LTV want to value ratio is high when you have less than a 20% down payment, leading your lender to believe that you are at higher risk of defaulting your payments.

How does Mortgage Insurance work and who pays it?

 Mortgage Insurance payments are, on paper, paid by your lender. However, the cost of the premiums for this mortgage are passed on to you, as a calculation of your loan.

Can you get mortgage insurance even if you have more than 20% down payment?

 Yes, you can. If you and your lender both feel it may be a necessity, you can get mortgage insurance on your loan. This type of plan actually works in your favor as it takes off the burden from the shoulders of your family.

It helps reduce the risk and assuage the chances of you drowning in debt even after your demise. One of the best ways to ensure less risk is having a higher down payment amount. But obviously, not everyone has that kind of money just lying around. In such scenarios a mortgage insurance plan can be a life saver.

How can you get mortgage insurance?

 Connecting with an insurance broker can give you access to the best plans in the market. They are well aware of the current rates and will help you understand what you’re getting into before you sign up.

Need a mortgage insurance plan? Connect with the best insurance brokers today! Canadian LIC is just a click away.