For example, you may start out paying premiums for $500,000 worth of coverage, but over time, as you pay down your mortgage, you end up paying the same premium for less coverage. A broker can also recommend strategies to help save you money, better still, they can get you more comprehensive coverage.Īlmost all lender-sponsored mortgage life insurance policies have a declining pay-out. Just because you are required to hold mortgage life insurance does not mean you need to pay your lender for this coverage.Īnother, potentially cheaper option is to talk to an independent insurance broker-a professional that doesn’t work for any one particular company but represents your interests by shopping your requirements at a variety of insurance companies. Cancel it completely and you could be held in breach of contract and the lender could demand full repayment of the mortgage loan.īut short, quick answers don’t tell the whole story. As part of this contract, your lender requires you, your daughter and your wife to hold life insurance. The short, quick answer is: Yes.īecause you signed a contract-that bulk of mortgage documents you signed-you are now bound by the terms of the contract. Now, in relation to your question if the mortgage life insurance is mandatory. ![]() Plus, Hamilton, Ontario is a growing city and it appears poised for growth over the next decade. Getting into the housing market can be tough for younger adults and it’s nice to know that you were willing to help your daughter and her husband out. My question is whether or not this mortgage life insurance is mandatory or can I cancel it?Ĭompare life insurance quotes from some of Canada’s top providers*Ī: Masood, first, let me congratulate you and your family. This is in addition to the monthly mortgage payment of $1,485. We pay around $315 per month each, for a total monthly payment of $945. In order to get the mortgage, however, my wife, who is currently 64-years-old, my daughter and I had to agree to purchase mortgage life insurance. We opted to go with RBC and the mortgage was approved at a rate of 2.65%. Q: My daughter and her husband did not earn enough, so my wife and I decided that we would help them by putting her name on the mortgage for the purchase of a new-build condo in Hamilton, Ontario.
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