We still haven’t gone through the pandemic, and times are tough for everyone. Among other consequences, most individuals and households are facing a big hit on their budgets. If you plan to buy a home, mortgage insurance can help make your down payment as low as possible.
The standard bank loan for buying a house might require you to pay 20% in advance. However, mortgage insurance can lower the risk for the lender. You’re the one who pays for it, but it’s a wise investment because you could qualify for a mortgage loan with a 5% down payment.
It’s an ace up your sleeve you can use whenever suitable. If you want to save the most money, it’s critical to find cheap mortgage insurance. Here are the steps to comparing prices and choosing the best deal!
Check out these advantages of using cheap mortgage insurance:
1. Get better loans – since these policies are a safety mechanism for the lender, they’ll agree to give you a smaller down payment.
2. Increases the odds of purchasing the desired property – you might find the house of your dreams but lack funds for a down payment. That’s where an improved loan deal can help.
3. Saving money – if you invest some time in finding the cheapest deal, you’ll save money in the process.
Now, let’s look at the three steps to identifying the best mortgage insurance for your needs!
Step 1: Know the Different Types of Mortgage Insurance
We already covered the basic mortgage insurance. The banks often require it for deals that include a down payment lower than 20%. You pay the premiums as the borrower, but this policy protects the lender. If you’re unable to pay your mortgage for any reason (late with payments, death, etc.), the lender activates the coverage.
You have two other mortgage insurance types available:
- Title insurance – if anything goes wrong during the selling process or you encounter a title issue, this coverage protects you.
- Life insurance – this type serves to take care of the mortgage if you receive permanent disability or pass away prematurely.
The initial step is to decide on suitable insurance for your requirements.
Step 2: Determine How Much Coverage You Need
If you are unsure about the required coverage sum, it’s time to grab a calculator. You start by calculating the mortgage. The actual amount required depends on the property’s price, preferred down payment, mortgage rates, and the amortization period. Once you have the sum ready, you can proceed to find offers.
Step 3: Find Offers and Compare Prices
It’s time to get quotes from the insurance company and compare them. The old-fashioned way is to call multiple agencies, write down the quotes and compare them. However, that takes a lot of time and effort. That’s why Insurance Direct Canada thought of an easier way for you.
All you need to do is to complete a simple form on our website. We’ll ask you to choose the desired insurance option and provide basic details. Our experts will gather free and affordable quotes and inform you about the available offers in the shortest possible timeframe. We work with the most reputable providers in Canada, making us a trustworthy asset in finding cheap mortgage insurance deals!