Quote:
Originally Posted by Kristi Hyson
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.
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I'll partially agree here. Having protection for yourself in terms of life insurance, critical illness and disability is important. I wouldn't (for a number of very important reasons) suggest that buying insurance from the bank/mortgage issuer is anywhere near that efficacy though. It doesn't offer the same security and bluntly the party that receives the protection in those cases is the financial institution.
People should have coverage, but they should speak with a fully licensed advisor to get it.