Mortgage Protection Insurance

Insurance to help protect your mortgage and payments.

When purchasing a home, there are several types of insurance to consider, such as homeowners or property insurance, mortgage default insurance, title insurance and Mortgage Protection Insurance.

Mortgage protection insurance protects you against certain circumstances where you may be unable to finish paying out your mortgage. Different than default insurance (which protects the lender, not you) this type of insurance is a voluntary option for you, as a homeowner, to consider.

True North Mortgage doesn't sell mortgage protection insurance, but we inform clients who may want to purchase this type of protection — in fact, we're required to know about it and discuss the options available to you when you apply for a mortgage.

What is mortgage protection insurance?

A mortgage protection plan is an affordable, simple and convenient solution that allows you to protect your home investment right away, at the same time you arrange for your mortgage. It provides life and disability protection to cover your mortgage in event of unexpected illness or death (conditions will apply):

• 44% of Mortgage Protection Plan claims have been made in the first 2 years of a mortgage (Source: over 10 years of MPP claims data).
• 11.4% of working-age Canadians suffer from some form of disability, with 43% of those disabilities severe or very severe (Source: Statistics Canada: 89-579).
  
• With today’s high cost of living, taxes, and mortgage payments, it’s more difficult to save than ever before. With this plan, your mortgage will be paid out, in case of unexpected death or illness*
  
  *Agreement and alignment with Mortgage Protection Plan Provider's Terms and Conditions will apply.

We offer Mortgage Protection Insurance (MPP) from Manulife. Why?

• Competitive Premium Rates - Manulife competes with the major banks to offer a competitively-priced product, and their Disability product is one of the least-expensive ones in the industry.
• 60 Day Money Back Guarantee - You can choose MPP today and change your mind any time within the first 60 days, and it will cost you nothing.
• Fully Portable Product - You have future flexibility. This insurance plan can move from lender to lender and property to property. Premiums do not increase within the amortization period. If additional money is applied for, only the 'topped up' portion will be priced at your current age.
• Auto Approval - Mortgage amounts under $300,000 where health questions have been answered 'No' are auto-approved. You can have 'instant coverage,' if you so choose.
• No Post Claims Underwriting - A paramedical is required for mortgage amounts over $300,000 or in situations where 'Yes' has been answered to a health question, which protects YOU. At a cost to them, they get the 'medical skeletons' out of the closet upfront, so that claims are more easily paid down the road should the need arise.
• Extended Amortizations - Extended amortizations may be covered with no additional cost in premiums.
• Disability Stand Alone - Most banks require that you purchase Life Insurance in order to get Disability. Manulife offers Disability on its own, with or without Life Insurance protection.
• Disability Not Reportable or Taxable - You won't need to report your Disability claim to either Canada Pension Plan (CPP) or your Private Insurer, and it is NOT subject to income taxes (because they pay the lender, not you).
• Interim Mortgage Payments - In the event of death, this MPP will make the interim mortgage payments while the claim is being adjudicated.
• Underwritten by Manulife - A trusted name and industry leader.

Have more questions about this type of mortgage insurance? We're here for you, anywhere you are in Canada.

We really know mortgages, and you'll get great advice for your best mortgage solutions. Check out our Mortgage FAQs to read more, or give us a shout.