Business

The Guide to Buying Mortgage Insurance in canada

Written by admin

Many people are not aware of the need for mortgage insurance, until they take out a mortgage, then they are explained what this insurance is – a “security note” to the bank. In cases where the mortgage payments are stopped, the insurance company will take care of the regular payments. In short – this is compulsory insurance, but that does not mean you have to be suckers – you can save a lot of money on mortgage insurance – banks are often expensive …

The Guide to Buying Mortgage Insurance – Yes, when you get a mortgage you must take out insurance – mortgage insurance that actually includes two types of insurance – life insurance and building insurance. This is an expense that can reach NIS 100-200 per month (on an average mortgage), but it is possible to save a few dozen good shekels (and more) every month, and in total it is a saving of tens of thousands of shekels over the life of the mortgage – so here is the guide to buying mortgage insurance

Buying an apartment, needless to say, is not easy at all. Every once in a while an Otzmer minister comes and says so far! In my shift from the military the apartments will go down, but that’s not really happening (for now), maybe there are interruptions at times, but a drop? Definately not. To be sure, even if there is a calm in the rise in apartment prices, we will still take out mortgages like crazy – very simply – we have no money for an apartment without a mortgage. The vast majority of Israelis take out a mortgage for 20 years or more, and even in the coming years most Israelis will have to rely on a mortgage loan before this important purchase. When this happens, they are also required to take care of an appropriate mortgage insurance policy. How can it be purchased?

What is mortgage insurance?

Many Israelis are not aware that they have to purchase mortgage insurance, until the moment they apply to the bank for the actual mortgage loan. Then they are also explained about the essence of this policy: it is intended to constitute a “security deed” to the bank for cases in which the mortgage payments will be stopped for them, due to the reasons specified in the policy. In such a situation, it is the insurance company that will take care of the payments.
It is clear that it is not possible to purchase mortgage insurance without knowing its two main components. The first is life insurance, and it refers to the health condition of the borrower. When a case of death, God forbid, causes the payments to the bank to stop, it is the insurance company that will do it. Usually, this section can be extended to include cases of disability, loss of ability to work and more.

Building insurance is the second variable in the policy equation. It already concerns the residential property, or rather: cases of material damage to it. In such a situation, according to the characteristics of the insurance agreement, the insurance company will bear the subsequent payments to the bank, or even take on some of the compensation payments required to return it to a proper condition.
It is important to emphasize that in each case the price of insurance will be determined according to the characteristics of the buyer and the property. Thus, it is clear that life insurance will be cheaper for a young person who does not smoke, than an adult who smokes or suffers from various diseases. This is how the value of the property, its basic characteristics and so on are given importance.

It is important to emphasize that in each case the price of insurance will be determined according to the characteristics of the buyer and the property. Thus, it is clear that life insurance will be cheaper for a young person who does not smoke, than an adult who smokes or suffers from various diseases. This is how the value of the property, its basic characteristics and so on are given importance.

Next step: Choosing a company

When understanding the basic characteristics of mortgage insurance, it is much simpler to find affordable offers. It is already understood here that there are quite a few factors that offer such policies in Israel, as well as significant differences between policies. These differences apply to each aspect of the policy: whether the amount of coverage, the conditions for exercise, the amount of deductible required to operate the insurance or anything else.

It should be remembered that various financial institutions, headed by banks, usually work in cooperation with one or more insurance companies. They will be happy to direct their customer towards purchasing the policy through them, on the pretext of preferential terms. In some cases, but few (even very few) this is indeed the case, in most cases it is a real trap. It is advisable to carefully review the characteristics of these policies before choosing. Here you can read about – Mortgage insurance is not done at the bank – this is how you will make proper and cheap mortgage insurance.

The journey towards the ideal proposition

In Israel, the insurance field is considered the most competitive. The aspiration of the mortgage insurance purchaser should, of course, be for a policy as broad as possible, for which the amount of the premium is relatively low. Only recognition of the field, and clarification with more than one insurance company, will be able to ensure this. And this is exactly where we start talking about price comparison in the internet age.

The importance of price comparison

Over the years, more and more Israelis have realized that it is not possible to make purchases of a significant size, such as that of insurance, without a comprehensive price comparison survey. This way you can examine one by one the offers of the insurance companies, and ultimately choose the affordable policy. The problem, if you can call it that, is that these inquiries took a long time, at least until the Internet came into the picture.

Today, there are a number of sites in Israel that offer insurance price comparisons, including mortgage insurance. These websites, including Wobi, allow the surfer to define exactly his personal characteristics and the characteristics of the said property, and view the exact offers of the insurance companies. This type of test takes no more than a few minutes, and will allow the mortgage buyer to get, more easily, the best offer.

And how do you choose an insurance company? In the mortgage insurance calculator on our website, including any calculator available on the Internet – here is the Ministry of Finance’s mortgage insurance calculator (the most objective and reliable it can be). You can get an offer from several insurance companies and see how much you can save on your mortgage insurance. It is over NIS 100 per month, NIS 30,000 throughout the life of the mortgage! Do not be lazy, all you have to do is turn on the calculator, but a moment before it is important that you understand what you are paying for? How do you pay? And how can you save?

Mortgage insurance includes two components – life insurance along with apartment / building insurance. When you receive an offer from the insurance companies / insurance agencies, do not be satisfied with the monthly amount you pay in their first month, but demand (and insist on it) all costs





Leave a Comment

error: Content is protected !!