HawthorneVillager.com

What do people think about mortgage insurance? do you really think that this is necessary for an additional 100 bucks a month, especially of you have life insurance policies?

thanks for your input.

Nope - If you are worried about it, get term life insurance to cover the amount of the mortgage, or whole life if you want.

Mortgage insurance is an insurance that gives you less coverage as time goes on for the same money - a useless and scam type insurance.

What Deep said is correct, although calling it a scam is a little extreme. It isn't a scam, but at the same time, there are better insurance options. The problem with mortgage insurance is that your payments remain the same, yet the pay out you would receive is continually decreasing should you find yourself in the unfortunate situation where you have to make a claim. Not really a 'fair' situation for the person taking out the insurance for that reason alone. I would strongly recommend speaking to an insurance agent before taking out mortgage life insurance.

Your mortgage broker (or bank of course) makes money on this, so they may try to 'sell' it to you. Just be sure you speak to an insurance agent regarding other options before signing on the dotted line for mortgage insurance.

(mortgage life insurance is not to be confused with CMHC mortgage default insurance).

_________________
Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.ca
paulm@citycan.com
Lic#10532

Follow me on Twitter! http://www.twitter.com/paulmeredith

Well, it's a scam to me - If you get less coverage, your premium should decrease.

Term life would be at least half, if not 75% less. I pay $20 for $250,000 Term 10, plus I have a whole life policy for $65. Either is a better option...

yeah, the bank is asking 110 dollars for a 330 000 mortgage. sounds like a rip.

You should inquire about permanent (or term) insurance. Depending on your age, you'll likely get better coverage for A LOT cheaper. I have 250K worth of permanent insurance to act as coverage for my mortgage incase something happens to me.

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Jessica

http://www.cbc.ca/marketplace/in_denial/

This has been posted before...it gives you a pretty good insight in creditor life insurance.

mat

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Mathieu Fugere
Mortgage agent
Licence #M08005933
Office: 416.945.9123
Cell: 416.899.7847
Fax: 905.693.8657
mathieufugere@mortgageedge.ca
www.mortgageedge.ca