What is Mortgage Insurance?

Simply put, mortgage insurance ensures your loved ones aren't burdened with your mortgage in the event of your death.

Your home is your biggest asset and your mortgage is lkely your biggest debt. If something were to happen to you your next of kin typically inherits both. With the right kind of mortgage insurance you can have the peace of mind of knowing your loved ones will be taken care of financially.

Why should I choose Brian A. Price & Associates for my mortgage insurance?

We specialise in mortgage insurance, we know the industry inside out, are licensed insurance brokers and can provide the most competitive rates by tailoring the policy to your specific circumstances. Our mortgage insurance coverage offers:

• Lowest Cost - we work with all the top insurance companies, each with dozens of policy options, to identify the best fitting / most competitive policy for you.
• Portable - When you move or renegotiate your mortgage your policy stays with you
• Your Loved Ones Benefit - If something happens to you your loved ones receive the money, not your bank
• Fixed Cost, Fixed Payout - Even though your mortgage gets smaller the amount of money your loved ones receive remains the same (see bank mortgage insurance). OR choose to reduce your premiums as your circumstances improve.
• There when you need it - You know you are eligible for a payout before you start paying. Our policies are underwritten from the beginning meaning there is more likelihood of a successful claim.
• Flexible - In addition to providing life insurance we can extend the cover to include disability insurance or critical illness cover.
• Tailor made - Because our policies are researched specifically for you and extensively underwritten from the outset. Your policy will be written around your specific circumstances obtaining the best deal regardless of age, smoking history, current health, family history etc.

CASE STUDY - Smart Windsorite saves $40,000

A woman living in the Windsor area recently renewed her mortgage with her bank. She has a $175,000 mortgage with 25 years left to pay. The mortgage insurance offered by the bank would have cost her $74.60 per month and mortgage payments of approximately $800 per month.

We were able to provide the same level of mortgage insurance coverage but for 55% less than she was quoted by the bank. The $41.18 she saved every month on her mortgage insurance is now added to her biweekly mortgage payments. Her monthly costs are the same as she had budgeted to pay the bank, however, she was able to make huge savings overall.

Conclusion

• Our client saved $40,000
• Will pay off her mortgage nearly 4 years sooner

My bank offered me mortgage insurance with their mortgage, should I just accept that?

You could but you would be taking a risk on one of the banks most expensive and most unscrupulous products. So unscrupulous in fact that CBC marketplace ran an episode explaining the shortcomings of bank mortgage insurance that most homeowners with conventional mortgages are completely unaware.

What CBC Marketplace has to say about Bank Mortgage Insurance

Here are some of the most relevant points:

• Expensive - The banks only offer one insurance company, themselves or their affiliate. They have no incentive to offer competitive rates.
• May not pay out - At the time you start paying mortgage insurance you have no way of knowing if you are eligible to claim. There is no medical examination or screening so the policy is not actually underwritten until you claim. Family or personal medical history or pre-existing conditions discovered at the time of the claim can result in the claim being denied and potentially your loved one's losing their house.
• Fixed Cost, Decreasing Value for Money - The premiums paid to the bank remain the same for the lifetime of the mortgage, however most people pay down their mortgage so less is paid out if the claim is made at the end of the policy than at the beginning.
• You Pay, The Bank Benefits - It's a peculiar quirk of the system, that if you take out mortgage insurance with your bank they or their insurance affiliate pay themselves the value of the mortgage that they loaned you in the event of your death.
• Inflexible - If you move or renew your mortgage your mortgage insurance also needs to be renewed, typically at a higher cost because you are older. Also mortgage life insurance only provides life coverage so adding disability or critical illness insurance is more expensive as you will need to take out separate policies.

Mortgage Insurance Explained