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.