5 Interesting Facts Must-Know About Mortgage Insurance

1. 5 Interesting Facts Must-Know About Mortgage Insurance Mortgage Insurance or Mortgage Life Insurance is a familiar term. Various countries have their specific rules when it comes to Mortgage Insurance. But what is Mortgage Life Insurance Plan in Canadaand its role in Canada? Mortgage insurance is a type of insurance that protects the lender in the non-payment of the loan. Suppose the loan borrower loses their job, falls critically ill, passes away, or fails to comply with the mortgage contract. In that case, mortgage insurance helps pay off the remainder of the sum, protecting both the lender and the borrower to a great extent. The main concept behind the Mortgage Insurance Plan in Canada was to provide families, both Canadian and Immigrants, a sense of security of having a roof above their heads at an affordable cost. Some interesting facts about mortgage life insurance ontario, Canada, are as follows: 1.The agency that first introduced the concept of Mortgage Insurance was the Canadian Mortgage and Housing Corporation (CMHC). After World War II, the Canadian Government set up this agency to help the veterans returning after the war to find housing at an affordable budget. 2. In Ontario, Canada, Mortgage Insurance becomes mandatory for down payments of less than 20% of the sum induced in purchasing the property (If the property costs over 1 million CAD). Whereas for purchases of properties costing between 500,000–1,000,000 CAD, the down payment would be 5% on the first 500,000 CAD and 10% on the remainder. And the down payments for properties worth 500,000 CAD or lesser would be 5%. If the borrower cannot pay the down payment of the above percentages, they would require acquiring mortgage insurance. 3. Mortgage insurance has also proved to be a boon for hundreds and thousands of Canadians, as it brings their dreams of owning a house a reality. Taking an example: Normally, lenders would never lend 95% of the funds required with just a 5% down. But, considering the protection mortgage insurance gives to these lenders, it suddenly is possible for borrowers to acquire their homes with just a 5% down payment. 4. Mortgage Insurance has also helped thousands of immigrants to own a home in Canada. Even for people with zero income records and with no credit in the country. Mortgage insurance policy in canada provides an extremely high level of protection to lenders and borrowers, enabling fresh immigrants to be eligible for loans with just a 5% down payment. 5. In Canada, Mortgage Insurance plans also come as a combination of Life Insurances and Mortgage Insurances, also known as Mortgage Life Insurance. This kind of plan ensures that, even after the borrower passes away, the mortgage for the house is paid off without a hassle. It increases the financial security of families exponentially.

2. These interesting facts about Mortgage insurance are aligned with the benefits for the policyholders. To know more about term life insurance mortgage, contact CHES LIFE. CHES LIFE is the best insurance service provider in Canada, providing the best assistance to its customers and helping them make some vital decisions about their family’s income and assets.