Mortgage

A mortgage is a loan you get from a lender (like a bank) to buy a home.
   •    You borrow money to purchase a property.
   •    You agree to repay the loan over time (usually 15–30 years).
   •    You pay interest on the loan.
   •    The home is collateral—if you stop paying, the lender can take the property (foreclosure).

Common Types:
   •    Fixed-rate mortgage: Same interest rate for the term.
   •    Variable-rate mortgage: Interest rate changes based on the market.
   •    Open/Closed mortgage: Open allows early payment; closed has restrictions but lower rates.
 

What is Mortgage Insurance?

There are two kinds of mortgage-related insurance:

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A. Mortgage Loan Insurance

(Also known as CMHC insurance)
   •    Required if your down payment is less than 20%.
   •    Protects the lender (not you) in case you default.
   •    Offered by CMHC, Sagen, or Canada Guaranty.
   •    Helps you buy a home with a smaller down payment.
   •    Cost: 0.6% to 4% of your mortgage amount (added to the loan or paid upfront).

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B. Mortgage Life Insurance

(Offered by banks or insurance companies)
   •    Optional insurance that pays off your mortgage if you die, become critically ill, or are disabled.
   •    Protects your family/home, not the lender.
   •    Peace of mind that your loved ones won’t lose the home if something happens to you.