Mortgage Insurance

Mortgage savings.

At Insurance Advantage, we know that insurance is not the easiest subject to understand. There are so many different insurance products and options that choosing the best mortgage life insurance on your own can be overwhelming. You want to make sure that your mortgage insurance adequately covers all the possible scenarios and that you get it at the best possible price.

We want you to get an insurance policy that makes sense financially in the long term – one that is affordable and one that will work to your advantage when the need arises. There is a lot of loop holes and fine print that can be found in some mortgage insurance offered in Toronto, ON by banks and other providers offering creditor insurance, and we’ll be more than happy to help you with that.

Take advantage of the experience and knowledge that Insurance Advantage has to offer, and let us answer your questions. We can guide you in finding a reputable and licensed insurance provider.

Common Pitfalls of Mortgage Insurance In Toronto

If you own a home and have a mortgage like most Canadians, you have probably been offered Mortgage Insurance from your bank. Most homeowners accept the offer and give it little or no thought again. The truth is there are better and more cost effective options to accomplish the same objective. There are a number of serious pitfalls that were brilliantly highlighted on CBC Marketplace in an episode called “In Denial”

To watch the episode on YouTube, just google ‘CBC Marketplace In Denial.’

Here are some points to consider when you are offered bank mortgage insurance from your local bank:

  • Coverage can be Denied: Bank’s mortgage insurance only starts investigating how you answered the medical questions after there is a death (post event underwriting) in an effort to see if they can find a reason not to pay-out the policy.
  • Premiums increase: Bank mortgage coverage steadily decreases as you pay off your mortgage while the premiums remain constant representing a slow increase of costs.
  • Forced to re-qualify: Bank mortgages are often renewed or renegotiated. Often people shop their mortgage for lower rates and find new lenders other than the original one. When this happens, new mortgage life insurance must be purchased at an older age and with fresh insurability requirements.
  • Not transferable: Bank coverage is not transferable nor convertible to a more permanent insurance should the need arise.
    Usually terminated at age 65-70.
  • Coverage is usually terminated at age 65-70.
  • Bank is the beneficiary not your spouse/estate: This removes choices like continuing to pay your mortgage monthly with the proceeds from your life insurance./li>

As mentioned in the CBC Marketplace Episode “In Denial” the best mortgage life insurance that you can get is your own personal insurance.