IT IS DEFAULT INSURANCE WHICH PROTECTS LENDERS IN CASE OF MORTGAGE DEFAULT OR BANKRUPTCY.
Mortgage Default insurance is typically required by lenders when homebuyers make a downpayment of less than 20% of the purchase price. Mortgage Default insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with little or no downpayment — with interest rates comparable to those with a 20% downpayment.
As with any insurance, there are insurance premiums to be paid. The amount of the premium varies and can range between 0.65% and 2.9% depending upon how much of the purchase price/home value is financed with a mortgage loan.
Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.
For more Info Contact-
SUKHPAL SINGH, Sales Rep
HomeLife Superstars Real Estate Ltd,Brokerage
Diriect:416-878-3212
Office: 905-792-7800
www.SUKHPAL.ca
