Mortgage Loan Insurance: The Best Way to Save

Mortgage Loan Insurance: The Best Way to Save

Buying a home is an important event in one’s life, but it can also represent a risky investment. Today, banks generally require future homeowners to be covered by loan insurance that protects their investment. the point.

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What is home loan insurance?

Home loan insurance is an insurance contract that protects you from the risk of non-payment if you are a borrower. If you are unable to make your monthly installments, the loan insurance will reimburse you for the capital owed.

It is generally included in the loan agreement, but can be subscribed separately. Home loan insurance can also be sold as optional insurance, at the borrower’s request. In addition, the guarantees offered by insurance vary according to each contract, hence using a mortgage insurance comparison such as allows you to choose the best formula.

How do I find the best mortgage loan insurance?

Mortgage insurance is a product that you should absolutely keep in mind when you go through a broker or banker to realize your real estate project. In fact, you should know that this insurance will allow you to compensate the banker if you do not pay off your loan. To find the best mortgage loan insurance, you must identify and know all the essential elements of your loan, in order to choose the most appropriate insurance for your situation, and thus save money.

To do this, using an insurance comparison will help you compare and find the most suitable insurance, according to the criteria that you would have previously entered into the online comparison. Know that using such tools is a great way to find the cheapest insurance, but also the most effective for your situation.

What is the role of home loan insurance?

The purpose of the home loan insurance is to compensate the banker in the event that the customer is unable to repay his loan. For a loan over 20 years old, it generally costs between 0.25% of the loan amount (if you are 25 years old) and 0.45% (if you are 45 years old), knowing that the lower the loan, the higher the insurance rate increases. In return, the borrower can enjoy many benefits such as the possibility to terminate his insurance in case of non-payment, among others.

What are the risks covered by home loan insurance?

Full and complete home loan insurance guarantee if payment is more than a month late.

More specifically, the main guarantees offered by mortgage loan insurance are:

• Non-payment of the loan.
• Loss of the client’s job.
• Inability of the borrower to work.
• Death of the credit holder.
• Death of a family member of the borrower.
• Inability of a family member to work.
• natural hazards (floods, storms, etc.);
• Etc.

Importance of Obtaining Mortgage Loan Insurance

Mortgage is an excellent solution for financing real estate projects. It allows you to finance the purchase of real estate or the repurchase of a mortgage, but also to acquire new business or finishing. A mortgage is also used to finance a rental investment. For all of this, you will need mortgage loan insurance to protect your loan and deal with any unforeseen events.

Thus, getting home loan insurance protects your assets. You can actually benefit from additional collateral such as risks related to job loss, death of a borrower, inability to work or natural hazards.

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