Understanding Insurance

Here are some terminology tips if you are a soon-to-be homeowner or just need a refresher:

MORTGAGE INSURANCE:  A form of coverage that allows a buyer to purchase a home with less than the recommended 20% down payment.  It protects the lender in case the borrower defaults on the loan payments.  There are 3 major insurers in Canada: CMHC (Canada Mortgage and Housing Corporation), Genworth Financial Canada, and Canada Guaranty.

MORTGAGE LIFE INSURANCE:  Insurance that pays off any outstanding mortgage debt in the event of the homeowner's death.

HOMEOWNER PROPERTY INSURANCE:  Protection for the home and possessions in the home, covering damages and/or loss in the event of theft, fire or other unforeseen disasters.