 What
is Mortgage Insurance?
Mortgage
Insurance is insurance which protects the lenders in case there is a default
in mortgage from the mortgagor. In Canada, lenders are willing to
make mortgage loans with down payments smaller than 20%, or in other words
you need to get mortgage insurance if you are is taking a loan of greater
than 80% of the property value. The fee is normally .05% to 3% of the mortgage
being insured, and is either added on to the mortgage payments or paid
in a lump sum.
In Canada
there are three companies offering this kind of insurance:
They all
have almost similar products and also offer unique products for self employed
people. |
