In 2018 a very common question, especially among our first time home buyers, was with regards to default insurance. I thought the best explanation out there is credit from our good friends at Genworth Financial: http://genworth.ca/en/homebuyers/index.aspx
What is Mortgage Default Insurance?
"Mortgage Default Insurance is a great way for homebuyers to achieve the dream of home ownership without a large down payment.
There are two types of mortgage options: conventional mortgages which require a minimum 20% down payment and high ratio mortgages which are designed for people who do not have the 20% down payment. High ratio mortgages require mortgage default insurance. This insurance provides the lender with the flexibility to offer homebuyers the same competitive interest rates available to those with a larger down payment. This insurance should not be mistaken for Mortgage Life Insurance which protects the homeowner in the event of death, sickness, unemployment or disability."
For more information on default insurance, how to qualify for a mortgage or information on rates and terms or products from our default insurer partners, please use our contact form or email, scott@thewestlaketeam.com