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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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88% - Very Often

Mortgage Insurance


Synonyms:loan insurance coverage, loan payment insurance, loan payment insurance policy, mortgage coverage, supplemental mortgage insurance
Notes:CanEquity offers mortgage insurance.
Filed Under: estate-management, insurance, mortgages
Tags: insurance, life insurance, mortgage
 

Definition of mortgage insurance

mortgage insurance
1. An insurance policy taken out to protect a lender in case a homeowner defaults on his or her mortgage loan. In Canada, mortgage insurance is required on all mortgages with a loan-to-value ratio over 80%.
2. In Life insurance, a policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability. Also called "Mortgage Redemption Insurance."

Related Terms and Acronyms:

  • Canada Mortgage and Housing Corporation (CMHC)   The Canada Mortgage and Housing Corporation: this is a Federally run institution that provides banks and lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure CMHC assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "G.E. Capital."
      ➥  Insures Canadian mortgage lenders.
  • low-down mortgages   Mortgages with a low down payment, usually less than 10 percent.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • mortgage brokerage   An individual or group who brokers deals between their clients and lenders.
      ➥  CanEquity is a mortgage brokerage.
  • mortgage disability insurance   Insurance that covers mortgage payments if a policyholder becomes disabled.
  • mortgage life insurance   Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
  • needs approach   A way of determining how much life insurance an individual should purchase by examining the future obligations and needs of the beneficiaries.
  • no money down mortgage   Available in Canada as a true 100% mortgage financing product.
  • single interest insurance   Insurance that covers a single party when more than one party has a stake in a property.
  • zero down mortgage   A mortgage product that allows the borrower to financing 100% of their property.

More Related Terms and Acronyms

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