The mortgage world is vast and full of a wide variety of terms to know. As brokers, we understand that grasping it in its entirety is unrealistic for those outside of our profession. Therefore, the CCF Mortgages team created our blog to help shed light on all of the important topics that may be of assistance to our clients who are simply trying to figure out which mortgage option is best for them.
When seeking a mortgage, most of our clients opt to get mortgage loan insurance – here’s everything you need to know on the subject:
What is Mortgage Loan Insurance?
Mortgage loan insurance is insurance that you can purchase that protects your lender in the case that you are unable to pay your mortgage down the road.
The Canada Mortgage and Housing Corporation (CMHC), provides mortgage loan insurance exclusively in our country to help protect lenders from those who default on their mortgages. While lenders pay the policy on your insurance, you pay the cost.
Why purchase it?
While it’s not necessary for every mortgage, lenders will typically oblige buyers to purchase mortgage loan insurance when the down payment they’re making on their home falls below 20%.
However, mortgage loan insurance is not offered to buyers of homes worth over $1 million.
The costs come into play when you examine your insurance premiums – which usually range between 1.80-3.60%. Fortunately, homebuyers have the choice to pay their premiums upfront or along with their scheduled mortgage payments.
How CCF Mortgages Can Help
Our brokers are dedicated to ensuring that every one of our clients home buying dreams are realized. If you’re looking into your options surrounding mortgage loan insurance, we will take the time to explain every detail of your choices to you, while additionally accompanying you every step of the way – until you’re standing in front of your new doorstep! Contact us today to learn more!