Insuring your mortgage: a long-term strategy

Despite economic challenges and market fluctuations, the dream of homeownership is still very much alive in the hearts of many Canadians. For most, owning a home is more than just an investment; it symbolizes stability, freedom and personal achievement.

Mortgage rates and the transformation of the real estate market

The real estate landscape in Canada has undergone a radical transformation since the COVID-19 pandemic. For some, that period—which saw mortgage rates plummet—was an opportunity to become homeowners. At the same time, lower mortgage rates prompted many homeowners to reevaluate their mortgage calculations and renegotiate their loans to take advantage of more favourable rates.

Today, the Canada Mortgage and Housing Corporation (CMHC) estimates that around 2.2 million mortgages will be up for renewal between 2024 and 2026. This means that many homeowners will have to renew their mortgages at higher interest rates than in 2020, which could result in higher mortgage payments on their properties. Given this context, it is understandable that many homeowners are concerned about how this renewal might affect their ability to repay their mortgage loans.

Why choose term life insurance for your mortgage?

Are you looking for home insurance? Consider insuring your mortgage too! When it comes time to take out your first mortgage or to renew it, shopping around for the best rate is crucial, but remember to factor in the cost of mortgage life insurance.

Did you know that you can switch your mortgage life insurance with a lender to term life insurance with an insurer?

This option offers greater flexibility but also allows you to save big. Unlike mortgage insurance from lenders, switching to term life insurance with an insurer allows you to maintain your coverage even if you change lenders for your mortgage, which is a major advantage for people comparing different mortgage rates and looking for the best rate.

Mortgage calculations: thinking about becoming a homeowner?

On the other hand, anyone who has been waiting for more favourable conditions to become a homeowner or renew their mortgage may see the Bank of Canada’s rate cuts as a great opportunity to enter the real estate market.

By combining savings strategies such as RRSPs, FHSAs and TFSAs, future buyers can build up a down payment and achieve homeownership more quickly. This means that many households that had put their home buying plans on hold can now move forward more confidently.

To help you get a clearer picture, a mortgage insurance calculator allows you to estimate the cost of coverage tailored to your specific situation. It only takes a few clicks and it’s a great starting point for comparing the options available and making an informed decision!

Three key benefits of switching to an insurer

Insuring your mortgage with term life insurance gives you peace of mind. Your overall financial situation and long-term vision will not be affected. The benefits include:

• Protecting your loved ones in case of the unexpected
• Preserving family assets
• Easing the financial burden on your beneficiaries

Other advantages to consider

Mortgage insurance purchased from an insurer also offers many strategic and financial advantages:

• You keep your mortgage insurance even if you change lenders when you renew your mortgage
• You own the policy and choose your beneficiaries
• There is no medical exam when you take out the initial policy, even if your health has deteriorated over the years
• The amount of your monthly premium is based on your personal profile, and will not fluctuate over time

Talk to the experts!

Ready to make an informed choice to protect your future? A financial security advisor will help you find solutions that are just right for you.

In an ever-changing market, buying a home is a leap of faith into the future. Term life insurance is a simple yet powerful tool to ensure your financial security and peace of mind for your loved ones. Protecting your mortgage also means safeguarding your family and long-term financial prospects. The right insurance gives you peace of mind, no matter what the future holds.

Learn more

The benefits of mortgage insurance.