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Industrial Alliance Mortgage Insurance

We all know how big of a financial investment it is when you’re purchasing your home, it would probably be the biggest one in your life.

Understand why insuring your Mortgage is important

We all know how big of a financial investment it is when you’re purchasing your home, it would probably be the biggest one in your life. Therefore,you must find a suitable Mortgage Insurance plan that can help you with your repayments if you can’t make them on time. You may be thinking why would you need Mortgage Insurance? Well in addition to making sure that your Mortgage payments are made on time, Mortgage Insurance has several other benefits too. These are:

  • You can keep single Mortgage Insurance even if you switch your lenders when you plan to renew your Mortgage

  • You are the sole owner of your contract and this would allow you to choose your beneficiaries

  • The premium on your insurance will be based on your profile and it will be fixed throughout; this would include a situation when you are not able to make payments, due to any illness

Good to know facts

If you take your Mortgage Insurance from an insurance company rather than going to the bank, it would be cost-efficient

If the policyholder passes away between terms, then the Mortgage Insurance will cover Mortgage payments or clear off any other debts and loans

Choose a product that fits your requirements

Pick-A-Term

Protectyour loved ones from any financial crisis, even when you’re not there Pick-A-Term offers part or full financial coverage for your financial commitment if you pass away. All your debts and loans would be cleared off so you dear ones are not obligated to repay them on your behalf. This product gives you the freedom to choose the duration of your insurance term that can be anywhere between 10-40 years and your premiums will not increase over time.

Universal loan insurance

Repay your debts while you focus on recovery from a disability This is often the go-to insurance policy for many Canadians as it enables them to repay a part of the full amount of a loan/debt when the policyholder is disabled and can work for a living. The coverage is offered to tenants as well.

Get the best Insurance Quote from iA Insurance

Call 1 844-542-4678 to speak to our advisors.

A comparison between our Mortgage Insurance products

Pick-A-Term Universal loan insurance
Duration of Coverage 10 to 40 years 2 years, 5 years or up to age 65
Guaranteed renewal up to age 65
Option to convert to permanent life insurance .
Coverage offered to tenant

The advantages of Mortgage Insurance

You’ve just made one of the most important financial transactions in your life, you have bought a home. Once that’s done, you’ve also purchased home insurance and are ready to unpack and settle down. Not so fast though.

Apply for Mortgage Insurance first

Why you may be thinking? Well, think of it this way, what if you suddenly lose your job? What if are bedridden with a disability? What if you pass away? How will you or your family make the payments? They will have to carry the burden of your financial obligations, which would make them fall into a deep financial crisis. If you have Mortgage Insurance, the company will take care of everything and you and your dear ones can focus on more serious matters. This policy will ensure that your investment is protected against any surprise that life throws at you.

What are the benefits?

At first, you should know that you can purchase this policy either from a bank (when you sign your Mortgage) or from a financial institution. And here’s a list of the advantages you will have if you apply from a financial institution:

  • You can choose your own contract and beneficiaries:In contrast to purchasing the policy from a bank where they name themselves the beneficiary, with a financial institution, you can name the beneficiary for yourself. In your absence, your beneficiary can choose to repay the loan, pay their debts or use the benefits for something else.

  • Fixed premium with guarantees:The coverage amount for the policy will remain the same throughout the lifetime of the contract. For example, if your Mortgage amount is $300,000 then the coverage amount will be the same year after year with a financial institution. With a bank, however, it will decrease as your Mortgage balance decreases but the premium will remain the same.

  • Convert your policy when you need to: With an insurance company, you will have the option to convert your Mortgage Insurance to permanent life insurance for the lifetime of the loan. The premium will not increase if you do this and you will also not have to pass a medical exam. Thus, you will have insurance until your death.

  • All your insurance products in one place:You will be allowed to link all your creditor insurance contracts under one policy and by doing so, make only one payment for all your debts, loans and other investments such as recreational vehicle coverage. This can help you manage your finances more efficiently.

  • You won’t have to shop around:If you buy Mortgage Insurance from an insurance company, you will not have to worry about renegotiating your terms as you grow old. The premiums will remain the same throughout the duration of the contract. With a bank, you will have to do that and the premium amount may increase as you grow old. It will depend on your health as well.

For further details on Mortgage Insurance, you can visit our How can we help you? section at ia.ca or you can also contact one of our financial advisors.

Fixed or adjustable-rate Mortgage

Fixed-rate

The name is self-explanatory, in this type of policy, the interest rate is fixed for the lifetime of the contract which can be anywhere between one, two, there or five years. Generally, the interest rate is a bit on the higher side than a traditional Mortgage, fixed-rate Mortgages offer greater stability that can help you plan out your expenses.

A fixed-rate Mortgage is an ideal choice for you if you:

  • Prefer to have a steady cash inflow throughout your Mortgage term

  • If you’re not that flexible with your budget

  • If you’re stressed about the interest rate would increase in a short term and you want to protect yourself

Adjustable-rate Mortgage

In this type of Mortgage plan, the payment would depend on the fluctuations of the interest rate; it can vary in line with the financial institution’s prime rates that are tied to the key interest rate standards maintained by the Bank of Canada. You know what that means, it means that if the interest rate drops, you will enjoy low Mortgage payments, however, if it increases, you will have to rethink your monthly expenses (because you will be paying extra on our Mortgage). The interest rate for adjustable-rate Mortgages is lower than its counterpart, but you must have financial flexibility if there is an increase in Mortgage rates.

This type of policy is apt if you

  • Can tolerate unexpected market variations, (if the rates increase);

  • Are financially stable to make increased Mortgage payments if the interest rate increases;

  • Want to take advantage of the drop in the interest rate

How to choose a Mortgage plan

When you’re planning to apply for a Mortgage, you should consider your present financial situation and measure your risk tolerance so you can set your priorities. If you want financial stability, a fixed-rate Mortgage plan would be apt for you. The interest rate would stay the same for the contract period and you can plan your budget with ease. However, if you’re planning to make low payments for your Mortgage, then an adjustable-rate Mortgage plan is the way to go; but you should keep in mind that if the interest rate fluctuates and increases, you will have to pay the extra amount.

Why should you purchase disability credit insurance if you rent?

The financial crisis you may face if you lose your income

If you’ve been unfortunate to lose your income due to disability, not only will it affect your lifestyle, it would also prevent you from meeting your financial commitments. Mortgage repayments, loans and credit card repayments might come to a halt and you would have to make some adjustments to your monthly expenditure as well. You can do the latter but what you have to understand is, there would be due dates for Mortgage and loan repayments, and you would have to meet them. Unless you do that, you may face legal action. A loss of income has an impact on your retirement planning as well because you won’t be able to contribute to your savings account. And if you’re loss of income is due to any disability, you should remember that it can involve extra expenses. These would come in terms of medications, physiotherapy, hospital stay, osteopathy or psychology.

Disability credit insurance

If you’ve been diagnosed with an illness or been in an accident while working, disability credit insurance can cover your financial obligation and help you maintain your quality of life while you focus on recovery. All you have to do is provide proof of loan to claim the benefits of the policy and that’s it. Till you completely recover, you can manage all the extra payments with the help of insurance.

Let us help you do the math

You will have to add up all your monthly expenses, including

  • Your rent payments

  • Any car loans

  • Any student/education loans

  • Line of credit

You will have to consider if you can manage your daily expenses if you suddenly do not have any income for the next 6 months. If you apply for disability credit insurance, you can have complete financial security in difficult times.

Snowed last night? Consider clearing it off of your property

Excess snow can damage your property, and you will have to clear it off to prevent that. Here are some tips that can help you in clearing it off:

First, why do you need to clear off the snow?

If you have too much snow on the roof, then it can damage the structure and cause leaking. That is why it’s important that you should clear off the snow before it reaches over 60cms. You should clear it off before any ice storms or rain because these can weigh down the snow that’s already on your roof. Hire experts to do that job for you, they will have the equipment to take care of the entire matter without any hassle. However, if you want to do it yourself, use a telescopic rake and do the work from the ground. It’s also a good idea to leave 10cms of snow so you don’t damage the surface of your roof.

Check for Ice Damming

When a property has a lack of insulation in the attic, warm air rises and the temperature of the roof increases. This heat melts the snow on the roof and the water from the snow stays trapped there and turns into ice. This can result in ice damming and as the water does not drain, it can cause leaking. You can prevent this by removing the ice as soon as possible. Hiring a snow removal expert who can safely remove the ice is the ideal solution. You can talk with them to assess the situation and also do some work that can prevent ice damming in the future.

Clear all the snow; on the outside as well as the inside

If your balcony has excess snow, it can collapse and cause major damage to your home. That’s why you should clear it off every time it snows. Another reason why it’s so important to do that is, in case there is an emergency, your balcony can be your emergency exit. This goes for your basement windows as well, as they can also be used as emergency exits if there is a fire. If the basement windows are caked in snow, it can cause leaking as well. Also, clear off extra snow from your carport, as the ice can weigh down on the structure and fall to your damage your car. That’s why it’s very important to clear off all the snow from your carport so you don’t have to worry about car damages. Although snow can be fun, you should know about the consequences of too much snow on your home.You can follow these safety measures to prevent any type of snow damage to your property.

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