Mortgage Information

Should You Use A Mortgage Broker?

Mortgage brokers, banks and credit unions are after your business.

You should shop for a mortgage like shopping for any other consumer product. A good mortgage broker is where you can start to review a wide range of options available.

Mortgage brokers will submit your loan to multiple lenders, have access to many different types of loan programs, and are not limited to dealing with one or two mortgage providers. They specialize in shopping around for the best and most competitive mortgage rates and terms available, tailored to meet your particular needs. This means they can often find a better rate than you could get on your own.

A Mortgage Broker work's with you, to find the best mortgage to suit your personal needs. Do you think the Banks do?

The Best Mortgage Life Insurance

Your home is probably one of the largest single investments you will make in your lifetime. If you are like most Canadian homeowners, paying a mortgage will be a regular household expense that you will have to budget for; so taking extra steps to insure its value through loss by fire, for example will probably be one of your first concerns. But what happens to the family's home when you are no longer there to make the mortgage payments or pay the insurance premiums? It's a problem that most families do not consider until it's too late, and the consequences can be tragic.

Life insuring your mortgage should be your first priority, since the possibility of death is more than a thousand times greater than fire. Banks or trust companies have plans available called "Lenders Group Mortgage Insurance ", but your own personal policy can cover all your needs with a plan known as Individual Mortgage Insurance.

What's the difference? In the first case, the bank or trust company would have control over your plan, but with the Individual Mortgage Insurance control of the plan remains with you.

Bank Credit Union or Trust Company*

Individual Mortgage Policy

You are covered under a group policy owned by the bank.

You purchase an individual mortgage policy.

You have no control over the policy because the bank owns the policy.

You own the policy and have complete control over it.

Features and provisions of the group policy are the same for everyone insured under it, only the face amount will vary.

You may select the type of plan you wish, the features and provisions you require with an individual mortgage policy.

The face amount of your policy can only be for the face amount of your mortgage (no more no less).

You may purchase any amount of coverage you require.

Group coverage is always decreasing term insurance, declining as the mortgage declines.

You may purchase any kind of insurance either permanent or term insurance; level insurance or decreasing.

Group policy can be canceled by the bank or the issuing company at any time.

An individual mortgage policy cannot be canceled unless you wish to cancel it yourself.

Group coverage could terminate upon the happening of any of the following events:

mortgage is repaid

mortgage is assumed

house is sold

group policy terminates

Your individual mortgage policy may be continued as long as you wish. It is a portable plan that can be used to cover any mortgage anywhere. (Statistics Canada report the average Canadian family moves every 5 years.) This is a very important feature if you become uninsurable at any time.

Group mortgage insurance is not convertible.

An individual term policy can be converted, regardless of health, usually until age 65.

Group mortgage insurance does not allow you to make beneficiary designations or to select the settlement options. In the event of death the bank is repaid automatically.

An individual mortgage policy allows the owner to make beneficiary designations. The owner or beneficiary may select any of the several settlement options. In the event of death, your beneficiary will receive the proceeds from your policy. Your beneficiary can have the choice of repaying the mortgage or not, thus preventing hasty decisions. Proceeds are protected from creditors.

Group coverage whereby both insured's are covered only pays on the death of one of the insured - not both. Coverage on the survivor terminates and cannot be continued.

An individual mortgage policy insuring both husband and wife covers each of them for the same amount. The proceeds will be paid, on the death of either one. Should both the husband and wife die the proceeds are paid twice. Also, the coverage on the survivor may be continued.

Cash values don't accumulate with group coverage.

An individual mortgage policy can be designed to provide a return of your premiums over time and provide you with attractive cash values.

No other benefits or features may be added to your group policy by you.

There are a number of features and provisions which you may add to your policy. You may wish to add a waiver of premium to you policy which would pay your premiums for you if you were disabled. Another option would give you the right to increase your protection regardless of your health.

When insuring through the group policy offered by the bank your bank loans officer is not a licensed life insurance agent and may not be well informed on various types of coverage available.

You are buying from a licensed professional that can help you in making your decision. I can explain and offer you a great choice of plans. My service in the years to come can be invaluable

A 30 day grace period is allowed after premium non-payment during which our policy is still in force.

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