If you think that your bank has your best interests at heart when they sell you mortgage insurance … think again!
This CBC Marketplace investigation is a MUST-SEE for every homeowner. The story was first published in 2008 but remains relevant today – another statement in its own right.
The full story can be seen at CBC Marketplace: http://www.cbc.ca/marketplace/episodes/2008/02/in-denial.html
Most homeowners are encouraged by their bank to buy an insurance policy on their home… under the guise that the policy will pay off the mortgage in full should the homeowner die, or become unable to pay off the mortgage.
In the event of unanticipated financial loss, the mortgage is paid off in full without further obligation of the homeowner.
As Erica Johnson reports, “The bank staffers selling mortgage insurance are unlicenced and rarely trained to explain the details and legalities of insurance products. The result is people who pay premiums and think they are covered, only to realize later that they are not.” (emphasis added)
If you currently have mortgage insurance with your bank (vs. a licenced insurance provider), you may be at risk!
If you are in the process of researching your options as a first-time homebuyer, you might benefit from using this online mortgage calculator.
Of course, nothing beats a personal consultation so (…shameless plug), remember Boys Financial if you have any questions about your mortgage.
At the very least, be sure to do your due diligence in all aspects of your personal finances and don’t assume that banking institutions have your best interests in mind when it comes to your home.
Remember, there’s never a foolish question when it comes to protecting the things that are important to you!..