How Does Mortgage Insurance Work?

Harpreet Puri is best and trusting professional adviser. We have done all our insurance from her. She is very punctual in her profession. We like her job. We definitely recommend Harpreet Puri for all insurance need.

Mishaps do not come with a warning sign. If there’s a situation where you can’t pay your home mortgage because of sickness, unemployment or any other reason, mortgage insurance can help you get through these tough times. Get in touch with Punjab Insurance Inc to discuss your options. We are here to help.

Working Principle of Mortgage Insurance

When you are buying a property, if you are paying less than 20% of the down payment, then it is mandatory in Canada that you opt for mortgage insurance. It can save you from being a default for your mortgage payments for your home when you are going through a tough time such as an accident, a death in the family or some other unforeseen event.

Now, here’s how the whole process works. As mentioned before, suppose you could only pay less than 20% in a down payment when you are buying a home. In this case, if you have mortgage insurance, your insurance premiums will be calculated as a percentage of the remaining 85% value of your home. So, if you are going through a financial crisis rest assured, the premium for your home mortgage will be paid. That’s one less thing to worry about.

Generally, we calculate your mortgage premium on two factors:

  • The type of mortgage insurance that you are opting for
  • Your down payment for your home

We offer a completely tailored service. If you have any queries, feel free to call us. We will be glad to resolve them.

The many benefits of a mortgage insurance plan

Mortgage insurance plans are designed to protect the lender if he or she cannot make the monthly payments on their home mortgage. You will have access to better interest rates and you can also have a low down payment. It increases your chances of home ownership as well. The paperwork is fairly simple and you don’t need to go through a medical check like other insurance policies. All you need is an experienced and reliable mortgage broker and we have team members at Punjab Insurance Inc who are both. We can advise you on the best plan based on your requirements.