Mortgage insurance Brampton is an ideal option to safeguard you from penalty mortgage premium payments in-case if you are facing any financial problems and could pay the sum amount for some time. Generally, you apply for a mortgage loan when you need funds for buying a property or something important. In mortgages, you offer to keep your property as collateral and in-turn receive the loan amount. You pay it back with a monthly premium on interest. Mortgage insurance ensures that your monthly premiums are still deposited to the lenders account in-case you can’t pay it. It generally costs between 2.80%- 4.00% of the total mortgage cost.
- Personal mortgage insurance, where you are the policy owner and you can name a beneficiary. You get coverage guarantee with this type of mortgage and you can change the plan whenever you want to.
- Bank mortgage insurance which is more popular. Here the lender is the beneficiary and the bank takes ownership of the policy. The coverage decreases as time passes and once the mortgage ends so does the insurance. There’s a lower risk of plan repayment and if the insured dies before the mortgage is paid off, the bank will pay the balance amount. To find out more, you can get in touch with Rupinder Rai.
In the present real estate market, mortgage insurance Brampton can protect you and your family from a financial crisis. It also ensures that the lender receives the mortgage amount in full if the borrower is not able to pay off. Applying for mortgage insurance when you are buying a property it can lower your premium interest rate as well as it gives the lender confidence on repayment. Other benefits include:
- There are many payment options to choose from
- If the insures passes away, the insurance company will pay the mortgage amount
- You can choose to a low down payment amount when you are purchasing a property
Recently the Canadian government has made it mandatory that anyone paying less than 20% down payment for a new property will have to apply for mortgage insurance. The down payment can be anywhere between 5%-20%. If your property cost is in-between $500,000 – $999,999 then the minimum down payment should be 5% of the first $500,000 and 10% on the rest of the amount. Also, mortgage insurance is not available for properties that cost more than $1mn.