What is Mortgage Default Insurance?

Mortgage Default Insurance is a great way for home buyers to achieve the dream of home ownership without a large down payment.

Many people have a breif understanding of the 2 types of mortgages available and they are

  • Conventional mortgages which require a minimum 20% down payment and
  • High ratio mortgages which are designed for people who do not have the 20% down payment.

High ratio mortgages require mortgage default insurance. This insurance provides the lender with the flexibility to offer homebuyers the same competitive interest rates available to those with a larger down payment. This insurance should not be mistaken for Mortgage Life Insurance which protects the homeowner in the event of death, sickness, unemployment or disability.

Now that you know about the different types of mortgages, Did you know they are 2 organizations  that provide this type of insurance. The one probably everyone knows is CMHC we hear that name all the type within the media (Radio, Television and Newspapers). The Other Organization is Genworth Financial

Genworth Financial helps new home owners and existing homeowners with their dreams by providing mortgage insurance. Mortgage insurance helps people secure low down-payment loans to purchase their own homes – many for the first time.

You do have a choice and it’s always a good idea to do as much research as possible.

As a Realtor I see many Home Buyers search through hundreds of homes online and search with me for for several weeks for that ideal home in an ideal neighbourhood. You should also know that you can apply that same level of research on the financial side of your purchase. Now you know you have a choice for your Mortgage Default Insurance

Check out the links below

Genworth Financial

http://www.genworth.ca/content/genworth/ca/language.html

CMHC

http://www.cmhc-schl.gc.ca/en/index.cfm

 

Scott Roy

RE/MAX JAZZ

21 Drew Street, Oshawa ON

(905) 435-7355 Direct

(905) 728-1600 Office

scott@lifieindurham.com

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