Mortgage insurance, also known as mortgage default insurance, basically protects the lenders if the homeowners fail to give the remaining payments on their mortgages. Canada mortgage insurance is a crucial financial safeguard for homeowners.
This mortgage protection insurance protects people who are eager to buy a home in Alberta in case of unexpected events, making it a wise choice for Canadian homeowners to secure their investments and peace of mind.
Usually, mortgage lenders offer mortgage protection insurance to their buyers, which is also known as creditor insurance. This insurance policy will help you by paying your debts to your lender or bank.
There are several types of mortgage insurance, including,
Suppose the borrower becomes seriously ill or passes away. In that case, the mortgage protection insurance pays off the remaining mortgage balance or provides the family with a monthly income to complete the payment. Usually, mortgage lenders offer mortgage protection insurance, but you can also buy it from a life insurance company.
While applying for the insurance, you must give personal information regarding your health, age and lifestyle. In this way, the insurance company will decide the amount of premium you have to pay.
Though house buyers are required to purchase a mortgage insurance policy while buying the house, they still need to qualify for the policy. But if you don’t meet all the requirements, then you may be denied. The following requirements are,
If you want to buy a house and your lender requires mortgage protection insurance, contact us at Hope Insurance Broker in Alberta.
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