The term ‘Insurance” is thrown around a lot in this industry and it can become confusing to distinguish one from another. “Do I need insurance?” “What am I covered for?” “What are the costs?” are all great questions and something you should be familiar with. Below are the three components that relate to your home and the mortgage.

Mortgage Loan Insurance

Insurance for lenders when the purchase price is greater than 80% of the homes value. This is required when the downpayment is less than 20% and is typically added into the mortgage.

The Three Providers Include:

  • Canadian Housing & Mortgage Corp. (CMHC)
  • Genworth Financial
  • Canada Guaranty

Home Owners Insurance

Insurance for the physical property. This is required for homes that have a mortgage and must be in place at the time of purchase and continue for the duration of the mortgage.

Mortgage Protection Plan

Insurance for homeowners in the event of death, serious accident, or illness that leaves you unable to work. This is not required but recommended.

The Three Providers Include:

  • Manulife
  • Scotiabank
  • TD Bank