Insurance Demystified

Mortgage Default Insurance

This is a federal insurance program which covers your lender in the event you fail to pay the mortgage debt. It is mandatory if you buy with less than 20% down, or in certain cases where the lender requests you have in place, i.e. higher risk property or borrower. Fees are paid up front or added to your mortgage balance. Your lender will make arrangements for this insurance on your behalf. Premiums are charged at a tiered percentage, and are directly related your loan to value ratio (how much you own vs. how much you’ve borrowed), and the purchase price of the house.

Title Insurance

This policy involves a one-time fee at the time of purchase to insure your right to the property you own. It protects you in the event of title fraud (there is a dispute of ownership), a lien put on the property by a previous owner, or any error that could otherwise impact your free and clear ownership of the property. The premium you pay is typically the same regardless of purchase price.

See this FSCO link for a more in-depth understanding of title insurance. http://www.fsco.gov.on.ca/english/pubs/consumerbrochures/undstitins.pdf

Fire Insurance

Property (fire) insurance is a requirement of all lenders. It protects you both in the event of a catastrophic fire. Theoretically, the mortgage is secured against the value of the house. If you have no house, the property therefore has no value. If your home were lost in a fire, your collateral is gone, you still owe the mortgage, and now you have to afford another means of shelter. It’s a legal requirement that also makes excellent sense. Fire insurance is paid by you, typically once a month. Premiums can be higher if you have unusual risk factors, or prior claims. Most homeowners turn to their automobile insurer for their home insurance.

Mortgage creditor insurance

Often confused with default insurance, creditor insurance protects you in the event of job loss, disability, or death. It is usually offered at the time you take obtain your financing, but can sometimes be purchased after your mortgage is in place. These programs are meant to cover your payments for an extended period of time, or pay out your mortgage in full in the event of certain illness, or death of a policyholder. Premiums are paid by you, usually at the same time as your mortgage payment. Premiums can increase with age or health status, much like typical life insurance policies.

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Areas of Service

My primary area of service is within the Halton and Wellington regions. As a Mortgage Agent I travel extensively and am able to service areas outside those mentioned. I'd love to hear from you, get in touch with me today!


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The AMP designation

AMP certification
The AMP or Accredited Mortgage Professional accreditation is the only designation in Canada that recognizes a proficiency standard for professionals in the mortgage industry. It is awarded by the Canadian association of accredited mortgage professionals (CAAMP), an association striving to achieve a standard of excellence for mortgage agents across the country.

AMP’s are committed to a high standard of professionalism, ethical conduct, and continuing education. The AMP is not mandatory at this time. It is an elective designation that I have chosen to earn. I hope this tells you a little about my commitment to excellence, and respect for my profession.