[Kristi Hyson]

Originally Posted by onetwo_threefour

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.

Mortgage insurance should never be offered as a condition to obtain a mortgage. If a customer is caught in a situation where mortgage insurance is a condition of obtaining the mortgage I would recommend escalating through the financial institutions escalation process. Mortgage insurance (not default insurance through CMHC) should never be a condition when dealing with a major financial institution.

Mortgage insurance is a valuable option to anyone who has a mortgage. There are various types of coverage such as loss of life, health crisis protection and disability. Purchasing a home is one of the biggest investments people will make and ensuring you are protected not only protects the mortgage holder in the event of something unfortunate it also provides security for the family.