Getting mortgage insurance is good. Getting it through a broker is even better.
Mortgage insurance fully or partially covers the borrowed capital in case of death or serious illness of the insured. If the insured becomes disabled, it also covers the periodic payments.
However, many homebuyers overlook the benefits of such protection because, when acquiring a home, they are already juggling many tasks: inspection, notarial act, renovations, moving, transfer tax, etc. Young families also tend to think this option is more relevant for older individuals.
Yet, mortgage life insurance taken through a broker offers many advantages. First, it can be taken at any time, not just when acquiring the home. You can even add it in the middle of a term.
No Surprises
With a broker, mortgage life insurance is independent of the mortgage rate. So even if the rate increases (in the case of a variable mortgage), your premiums will remain stable. The coverage amount will also stay fixed for the entire insured period. This is not the case with the lender’s mortgage insurance, as the coverage amount decreases in line with the mortgage balance.
With a broker, you will also have multiple payment options, and you can change the beneficiary at any time, unlike with a bank’s mortgage insurance, where the lender automatically designates themselves as the beneficiary.
Additionally, the broker’s mortgage life insurance won’t be affected if you change financial institutions. In contrast, with a lender, you would need to requalify with the new lender.
Support and Advice
Another advantage is that a broker will thoroughly assess your financial situation to determine the best options for you. With their advice, you could even take the opportunity to set up an emergency fund or invest in your RRSP.
Want to know more about the benefits of mortgage life insurance or have any questions about it? Contact our specialists at 1-855-LUSSIER or fill out this form.
