What the banks don’t want you to know about creditor mortgage insurance:

1) Creditor insurance programs do not contractually guarantee rates. The insurer may increase their rates or even cancel the policy with only 30 days notice, leaving you unprotected.

2) The amount of coverage you have decreases every time you make a mortgage payment meaning you pay the same premiums month to month but the amount you are covered for continuously decreases.

3) Coverage terminates when your mortgage is paid in full but you may still need coverage. You’ll be older and the insurance premiums will likely cost you more if you are still insurable.

4) Creditor mortgage coverage does not give you the option of taking the death benefit in a lump sum payment and continuing to pay the mortgage, which may be advantageous in a rate-increasing environment.

5) The underwriting for creditor insurance happens at the time of claim…. YES, AFTER IT’S TOO LATE! The big banks will tell you that creditor insurance is a good option to people who have been declined for other types of insurance but the truth is, they will almost always take your premiums but you won’t know if you are really covered until after its too late.

Insurance can be a confusing topic but it’s very worth your while to understand what you are getting into. CBC Market Place has ran an interesting investigation into Creditor Mortgage insurance here https://www.youtube.com/watch?v=MvtcfTrPJJE and here https://www.youtube.com/watch?v=CanwSISE1wk.

Insurance is a safety net for when the unexpected happens. Life insurance offers a way for your family to continue living comfortably and without worry in a difficult time. Call us today and we can help you get a protection plan in place!

So the time has come to renew your mortgage. Did you know you don’t have to stay with your current lender? Just like you shopped for the perfect mortgage when you bought your house, shopping for the perfect mortgage when your term is up is just as important!

Approximately 120 days before your mortgage is due for renewal you should start looking at your options. Most lenders will hold rates for that long, so you can get everything in line with plenty of time to secure your new rate. Some banks will call you around the 4 month mark to offer you an early renewal rate, and some will wait until just four weeks before your term is up with an offer, this leaves hardly enough time to explore your options. They know this and hope you’ll just sign back one of their offers.

Here is where it gets interesting. More often then not the rates offered on a renewal are not even remotely competitive, I’ve seen offers of 4.79% on a five year fixed on a renewal when everyone else is is offering 2.79%.  That’s a full 2% higher, they’re hoping you don’t notice. If you have a $500,000 mortgage, that’s a difference of $47,600 over five years!

Please do not automatically sign the friendly mortgage renewal form. At a minimum call a mortgage broker to get the best deal for you. Most mortgage brokers will do a free review of your offer to see if you’re getting the best deal and rest assured, if we do one for you and its best for you to stay with our current lender, we will tell you that 100% of the time. It will cost you nothing  and it could save you thousands!  Call a mortgage  broker your future net worth will be glad that you did.