|Mortgage Insurance in Canada
Mortgage insurance is a kind of insurance that was developed to compensate financial institutions or investors should a homeowner default on their loan. It is required for any mortgage where the downpayment is less than 20%. Whether the mortgage insurance is public or private will depend on the institution that lends the funds.
Where Can I Buy Mortgage Insurance
The Canada Mortgage and Housing Corporation
Genworth Financial Canada
The purpose of this loan can be any of the following debt consolidations, repay existing financing, or renovations. Portable mortgage default insurance is also offered and should only be used to either purchase or refinance a home. The majority of financial institutions give the option of
portable mortgage default insurance which allows borrows to transfer their already existing mortgage loan to a different property, saving the cost of setting up another mortgage loan and preserving the already existing low-interest rate.
The third company that provides mortgage insurance is The Canada Guaranty Mortgage Insurance Company, which provides an array of mortgage insurance policies, such as Purchase Advantage Plus, Refinance Advantage, Downpayment Advantage, and Lifestyle Advantage.
Although each of the three providers of mortgage insurance offers different programs, in general, it is important for homeowners to understand that they have the options of either paying the insurance premium in cash or adding it to the mortgage loan amount. However, if choosing to go with the second option, it should be noted that interest is added to that as well as the loan itself, increasing the overall cost.