After you just spend months shopping for your dream home you finally make the decision to purchase the home you can imagine your future in it. In your mind you're already planning the changes you have to make so the house will become your home.
This is the time when for weeks you are shopping for the best mortgage rate. Your lender suggest taking out mortgage insurance to protect your prized assets. Your home is probably the biggest investment you'll ever make. When you arrange a mortgage with a financial institution they must ask you if you want to insure your mortgage through them.
When years ago we brought our first home and I didn't have much knowledge about how mortgage insurance works my broker looked at me and she said:
"Legally, in Canada Mortgage Brokers MUST to offer Mortgage Life Insurance with every mortgage they place. We are no insurance people, and even if we don't believe in the product, legally we are bound to offer it. I prefer to advice my clients to talk with a Financial Planner, who is an expert in the field, someone who will actually see that you are qualified AND covered in case the worst happens"
Then she looked at my 3 kids and said:" Make sure you have a personal term insurance, as you have 3 kids and can't take a chance". I was blessed with the right broker because at that time I would take whatever she would offer me, I didn't know better and I trusted her. Sometimes just because people are nice and we "feel" that we can trust them they may not always put your best in front of their commission.
On the surface it sounds like a good idea: protecting your loved ones against a serious illness or death seems like a prudent decision, so at the lender's suggestion you decide to take on the premium to your mortgage payment.
This scenario unfolds hundreds of times each week yet many consumers still do not realize that they may getting ripped off.
To find out why a mortgage insurance my not be your best alternative GO MortgageInsuranceSecrets/
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