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What Is Mortgage Loan Insurance?

What is Mortgage Loan Insurance?

There is a lot of confusion about what Mortgage Loan Insurance is and what it is for. So I wanted to spend a little bit of time trying to explain. The best way I think to do this is to start with what it is not:

Mortgage Loan Insurance is not life insurance.

Mortgage Loan Insurance is not house (fire) insurance.

Its purpose is to protect a bank’s interest in the event that they cannot collect the full amount owing to them for your mortgage. This insurance offsets the risks associated with lending large sums of monies with little to no equity. In turn, this makes home ownership possible for people who otherwise may not have had access.

The rate that is paid is determined by the amount used as a down payment, mortgage program, and property type ranging from 0.6% to 5.45% of the mortgage amount for amortization periods up to 25 years. These monies can be paid as a lump sum, but are more often tacked onto the mortgage balance at closing.

There are three insurers in Canada: Canadian Mortgage and Housing Corporation, GENWORTH Canada, and Canada Guaranty. Each of their programs varies slightly, and some offer incentives to home buyers for taking action to improve their homes!

If you are interested in finding out more about mortgage loan insurance, contact us and we would love to chat more with you.

1. The TeamClinton.ca “Fall Into Homeownership Giveaway” (the “Contest”) runs from 08:00:00 a.m. AST on September 6th, 2020 (the “Contest Starting Date”) to 5:00:00 p.m. AST on September 18th, 2020 (the “Contest Completion Date”). The Contest will have a series of prizes including:

  • One (1) daily prize draw for two (2) ticket vouchers for a future Halifax Wanders game (the “Daily Prize”) starting on September 8, 2020. The Daily Prize is valued at $65.00 CAD. There are no cash alternatives or substitutions.
  • Two (2) weekly prizes (the “Weekly Prize”) for a pair of season tickets with draws occurring on September 11, 2020, and September 18, 2020. Each Weekly Prize is valued at $450.
  • One (1) grand prize (the “Grand Prize'') that includes hotel accommodations, a restaurant gift card, and a Halifax Wanderers swag bag including two (2) game vouchers for a future Halifax Wanderers. The Grand Prize is valued at over $500.00 CAD. There are no cash alternatives or substitutions.

    2. Submitting this form implies consent to subscribe to our emails and mobile phone alerts. Subscribers may opt-out at any time. 

    3. SMS message and data rates may apply. Text HELP to 68411 for help, text STOP to 68411 to end. By opting in, I authorize the seller to deliver messages using an automatic telephone dialling system and I understand that I am not required to opt-in as a condition of entering the Contest.

    4. Participants will receive one (1) contest entry for signing up to email and/or mobile phone updates. This is limited to one entry per person through the online sign up form.

    5. Participants may have the opportunity to earn additional entries and any details will be announced from time to time if available.

    6. The Grand Prize is valued at $500.00 CAD. There are no cash alternatives or substitutions.

    7. Participants must be 18 years of age at the time of contest entry and reside in Nova Scotia, Canada.

    8. By entering this Contest, all entrants consent and agree to the use of their name, address, likeness and photo for any advertising, publicity and marketing purposes by the Sponsor, without compensation.

    9. By entering, all eligible participants agree to abide by the rules and conditions outlined above.

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Normally you can find this at retail stores across Halifax and Dartmouth, but we wanted to make it even easier for you to get a copy.

The entire guide is available online to view or download, and to make sure you’re staying safe at home, you can now request a print copy by mail, free of charge, anywhere in Nova Scotia!