Mortgage Insurance
Coverage that clears the mortgage if you die or become seriously ill — owned by you, not the bank.
The mortgage life insurance a lender offers at closing is convenient, but it has three problems: the benefit falls as your balance falls while the premium does not, the bank is the beneficiary rather than your family, and the coverage ends if you switch lenders.
A personally owned term life policy sized to the mortgage fixes all three. The benefit stays level, so as the balance drops your family keeps the difference. You name the beneficiary, and they decide whether paying off the mortgage is the best use of the money. And the policy follows you to any lender. It is frequently cheaper too.
Who this is for
- New homeowners about to sign a lender’s creditor insurance form
- Existing homeowners paying for bank mortgage insurance today
- Anyone renewing or switching lenders
- Co-owners and co-signers sharing responsibility for a loan
What you get
Benefit stays level
Unlike creditor insurance, the payout does not shrink as you pay the mortgage down. Your family keeps the difference.
You choose the beneficiary
The money goes to your family, not directly to the lender. They decide whether clearing the mortgage is the right move.
Portable between lenders
The policy is yours. Switch banks, refinance or move house and the coverage continues unchanged.
Underwritten before you pay
Your health is assessed at application, not at claim time — so there is no nasty surprise for your family later.
Often cheaper than the bank
Individually underwritten term rates are frequently lower than the lender’s pooled creditor rate, particularly for non-smokers.
Add critical illness cover
Extend the same structure so a serious diagnosis, not only death, can clear the mortgage.
Questions we get asked
No. Creditor life insurance offered at closing is optional. CMHC mortgage default insurance, which protects the lender on a low down payment, is a different product and may be required.
Yes. Put a personal policy in force first, then cancel the creditor coverage. Never cancel before the replacement is approved and active.
The policy continues. That is the advantage of owning it yourself — it is not attached to the property or the lender.
Get a mortgage insurance quote
Tell us a little about who needs covering. We will compare the market and come back with two or three options worth considering, with the trade-offs spelled out.
- Advice and paperwork cost you nothing
- Available in English, Punjabi and Hindi
- Most quotes returned the same business day