Mortgage Protection Insurance Ontario
Mortgage Protection: Help Keep Your Home in the Family.
Explore insurance strategies designed to help your loved ones manage mortgage obligations if the unexpected happens.
Why It Matters
Your Home Is More Than a Mortgage
For many Ontario families, the mortgage is the largest financial commitment they will ever make.
If you pass away, your family may still need to make mortgage payments. Coverage designed with your mortgage in mind can help your loved ones pay down or pay off the balance, so they have more choices about staying in the home.
Know the Difference
Three Things People Often Mix Up
- Mortgage default insurance (for example, CMHC insurance on a smaller down payment) protects the lender if a borrower defaults. It does not protect your family.
- Lender mortgage life insurance is optional creditor insurance offered by a lender, which typically pays the lender if you pass away.
- Personal life insurance is a policy you own, which pays your chosen beneficiaries, who decide how to use the money.
Compare
Lender Mortgage Insurance vs. Personal Life Insurance
Both can help, but they work differently. Features vary by product, so always read the specific terms.
| Lender mortgage insurance | Personal life insurance | |
|---|---|---|
| Who receives the benefit | Usually the lender, to pay down the mortgage | Your chosen beneficiaries |
| How the money can be used | Applied to the mortgage balance | However your beneficiaries decide |
| Coverage over time | Often decreases as the mortgage is paid down | Typically stays level for the term |
| If you change lenders | Coverage may end and need to be replaced | Coverage stays with you |
| When eligibility is reviewed | Some products review health details only at the time of a claim | Reviewed during the application, before coverage is approved |
This is general information. Product features differ between lenders and insurers.
Strategies
Ways to Protect Your Mortgage
Term life matched to your mortgage
A term length that lines up with your amortization or renewal plans.
Coverage for both partners
Options for couples who share a mortgage, either on individual or joint policies.
Additional protection
Some people also explore critical illness or disability coverage. Availability depends on the insurer and eligibility.
Questions
Mortgage Protection FAQs
Do I have to buy mortgage insurance from my bank?
No. Optional mortgage life insurance from a lender is a choice, not a requirement. You can compare it with personal life insurance before deciding.
Can I replace coverage I already have?
Possibly. Never cancel existing coverage until new coverage has been approved and is in force.
How much coverage should I consider?
Many people start with their mortgage balance and then consider other debts and family needs. We can walk through this together.
Free Consultation
Protect the Home You’ve Worked For.
Let’s review your mortgage and explore coverage options that fit your family and budget.
Coverage is subject to insurer underwriting, eligibility, policy terms and approval.