Mortgage Insurance the same as an "Insured Mortgage?"
No. Mortgage insurance on your
life is not the same as an "insured mortgage."
An insured mortgage protects the mortgage lender in
the case you do not make your mortgage payments. This
coverage is provided by CMHC - Canadian Mortgage and
Housing Corporation - and is required if you have
a "high-ratio" mortgage. (A mortgage is
high-ratio if the amount borrowed is more than 80%
of the purchase price or the appraised value of your
home, whichever is less.)
When you take out a
mortgage with your financial institution, you may
also purchase mortgage insurance, a term insurance
policy, so your debt is paid off in the event you
die. There are a number of factors to consider before
choosing between this form of group insurance and
an individual term policy.