- Home insurance
- Title insurance
- Mortgage life insurance/creditor insurance
If you have a mortgage, the lender/bank would usually require you to buy home insurance
- Because the mortgage is secured to the home and if something happens to your home (eg. fire), the lenders want to ensure that they will be able to get their money back
- With home insurance, you are insuring your physical home and contents in the home
CMHC mortgage loan insurance is required when you put less than 20% downpayment on your property and is backed by the government.
- Sometimes this insurance is also provided by Genworth
- This insurance helps protect the lenders (not you) in case you default on your mortgage
This type of insurance is very different from the typical insurance that you are used to. It protects your deed or claim to the property, therefore allowing you to be able to use or sell the property.
- Prevents fraud against your deed
- Mandatory in most provinces and with most lenders
Mortgage Life/Disability Insurance
This is like any other life or disability insurance, except that it just covers your mortgage if something were to happen to you and you are unable to make the mortgage payments.
- Optional but when you are signing your mortgage documents, you have to either accept or waive
- Consider getting this insurance if you have dependents because if something happens to you, the mortgage payments would be covered
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