A mortgage is the single most important debt on almost every Canadian. It is helpful in protecting the mortgage loan on insured, where the insurer promises to pay designated beneficiary a sum of money(coverage amount) in exchange for a premium, upon the death of the insured person.
Banks also provide mortgage insurance but there is a distinct advantage in our mortgage insurance compared to the one provided by the bank.
COMPARISON
| Parameters | Bank mortgage insurance | Our insurance to cover the mortgage |
|---|---|---|
| Policy ownership | Bank | You |
| Coverage amount | Mortgage balance | You can choose your coverage amount |
| Premium | Coverage amount goes on decreasing while the premium remains the same | Coverage amount and the premium remains the same for the term |
| Beneficiary | The bank is the beneficiary | You can choose your own beneficiary. |
| Time of Underwriting | At the time of claim | At the onset so no issues at the time of claim |
| Transferable | Not transferable if shifted to another lender | Transferable |
