Mortgage Insurance

There are a number of different types of Mortgage Insurance. Here is a breakdown of the types:

  1. High Ratio Mortgage Insurance
  2. Mortgage Life Insurance (Creditor Life Insurance)
  3. Title Insurance
  4. Home Insurance

High Ratio Mortgage Insurance

For a large number of Canadian home buyers - especially first time home buyers - saving enough money for a down payment is the hardest part of becoming a home owner. Saving a down payment of 20% can be extremely difficult for a lot of people.

Mortgage loan insurance enables home buyers to purchase a home with 5% down payment. The amount of the insurance premium depends on the amount borrowed from the lender.

Mortgage loan insurance premiums can be paid in a lump sum or be added to your mortgage and included in your monthly mortgage payment. For more information, talk to your mortgage professional.

In mid September 2008 the federal Department of Finance issued the final set of parameters for the financial guarantee that applies to mortgage insurers.

Measures include:

  1. Maximum amortization of 35 years;
  2. Down payment required of 5%, although purchasers can borrow towards this amount;
  3. Minimum credit score of 600 an adjustment from the previously published 620;
  4. Previously announced limit of 45% for total debt servicing replaced with a 'principles' based approach;
  5. Enhanced documentation requirements including income verification and up to date appraisals;

These changes came into effect on October 15, 2008.

For further information on high ratio insurance, please click the following links:


Mortgage Life Insurance (Creditor Life Insurance)

Mortgage Life Insurance is designed to protect your family from the financial burden of paying off your mortgage in the event that something should happen to you.It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage is unable to make mortgage payments.

For more information on Mortgage Life Insurance watch this video.

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Title Insurance

When you buy a home, you are buying title to the property. Title insurance protects that property.  It is an insurance policy covering the condition of title or ownership of your property and is used to provide ownership protection against losses or damages suffered as a result of title problems.

Title Insurance provides the purchaser with coverage against title risks inherent in real estate transactions (including title fraud) for as long as you own your home.

For more information, click here: First Canadian Title

Home Insurance

This is the most commonly understood type of insurance for most people. In the case of residential homes, it covers the replacement cost in the event of a fire, etc., of your actual home. Condos, townhomes & other types of strata properties have this included in their strata fees. Lenders will require proof that you have this insurance in place. Content insurance is optional.

For more information, talk to your Mortgage Expert at Canadian Mortgage Experts.