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The Pitfalls of Using Banks, Credit Unions and Trust Companies for Insuring your Mortgage with Creditor Mortgage Insurance
It is important to have insurance to protect your mortgage obligation.
Most households require two incomes to qualify for a mortgage. And the banks know that if one spouse dies then it will be almost impossible for the surviving spouse to make payments. Or, if you suffer from disability and with the lost income and increased medical bills resulting from your illness you could lose your home because of your financial inability to pay the mortgage payments. If your home goes into foreclosure there will be accelerated interest payments, prepayment penalties, thousands of dollars lost to a 'forced sale' proceedings and untold stress. To protect your investment in your home and your sanity you must have insurance coverage.

Don't feel obligated to buy insurance from your bank.
Often when one goes to a bank for a mortgage you may feel obligated to purchase insurance coverage to cover their mortgage payments or loan due to a death or disability. The loans officer may promote creditor life or disability insurance that has many restrictions. Sometimes you may feel that if you don't buy creditor insurance coverage from the bank you may not get your loan. But, did you know that you are not obligated to buy insurance from the financial institution that gives you a mortgage? Did you know that it is against the law to tie the sale of insurance coverage with your loan? It is true. It is an unlawful practice and no financial institution should use such pressure. In fact, there are laws to protect your right to keep your insurance separate from the bank
It is better to buy insurance separate from the bank, trust company or credit union. There are 5 reasons why you should use separate insurance that we call the Mortgage Insurance Program:
Q. What are the main advantages of the Mortgage Insurance Program?
A. Here's the TOP FIVE list of advantages:
    1. Portability
    Coverage portable from one property to another or from one lender to another. This is unlike almost all other creditor insurance programs.
    2. Affordability
    · Versus other lender products - WE ROCK! We are extremely competitively priced (non-smoker rates are best in the market)
    · Versus other other term products - level term life premiums up to 2 ½ times as expensive over 25 year coverage period. And our premiums stay level for the duration of coverage unlike others where premiums increase every 5 or 10 years.
    3. Simplicity
    · Coverage is automatic on mortgages up to $200,000 and with answers of "no" to health questions on the application form
    4. Flexibility
    · Range of coverage options including Life with Disability and Critical Illness riders (Critical illness coverage not available from most lenders);
    · The Mortgage Insurance Program can insure up to four parties to the mortgage loan
    · Have option to obtain either coverage prior to mortgage closing date or free accidental death until the mortgage closing date
    · Lump sum coverage reductions available
    5. Reliability
    · Partnered with the largest Insurer in Canada - Great-West Life - client can have confidence in the insurer's brand.
    · Committed team of GWL representatives provide toll free customer service to both clients and brokers
    · Broker kept informed of application receipt and final decisions made, and communicated, to the client
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