Quote:
Originally Posted by Slava
You should hear the things clients tell me. Yesterday in fact a very good client told me his bank wouldn't give him the mortgage without buying an insurance policy. Could be that he misunderstood, and surely that would be the banks position, but its just wrong.
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I've had clients tell me the same thing on occasion and I tell them it's simply not true. But then again, I've also had dozens of clients that think that CMHC is life insurance, so I suspect that at least some of the time the client is confused about the requirement for an insured mortgage vs. the option of purchasing life insurance on a mortgage.
However it's happened enough times that I'm sure at least a couple of times that they were told life insurance is mandatory. The commissions on those policies can be huge. I've had quite a few clients get very annoyed upon being advised that the bank cannot require to to life insure your mortgage with them.