Why You Should Consider Mortgage Insurance

General Trevor Bumstead 21 Apr

Prior to becoming a licensed mortgage agent, I was in the same camp as most in asking, “Why do I need additional mortgage coverage?” Not only did I have great coverage through work, but my wife and I had also purchased a term insurance plan as secondary coverage when we got married. We were covered, right? Well guess what…live happens.

Here we are…10-Years later…2 kids…4 moves…job relocations and career changes…finally our dream house…and now, a global pandemic. Exactly how we
planned it out over a decade ago, right. Ok, so not quite.

Job changes triggered coverage gaps and our expanded family (and mortgage) meant we no longer had sufficient insurance.

As a member of your financial team, I have a responsibility to ensure that your largest single asset is protected for the future. Although you may have coverage through your workplace or privately, the above is a personal example of how mortgage protection can help fill the gaps to help protect you and your family in case the unexpected happens.

What are the two types of Mortgage Insurance?

  • Life Insurance – Pays off the mortgage if one of the mortgage holder passes
    • Most work insurance plans cover less than 2x salary
    • Work insurance acts as short-term Income Replacement vs. Mortgage Insurance which is long-term Debt Elimination
    • Immediate coverage is available
    • Mortgage payments are paid while claim is being settled (no delays)
    • 1-in-5 households would face immediate financial uncertainty if primary wage earner suddenly passed
  • Disability Insurance – If you suffer a serious injury or illness and are unable to work, mortgage payments (and property tax) will be covered
    • Disabilities can include both physical and mental health issues
    • More common than you might think as 1-in-3 Canadians will be disabled for 90 days or more before age 65
    • 56% of Canadians on disability leave returned to work early due to financial reasons
    • Includes Terminal Illness coverage which will pay your mortgage so you can focus on self care

Why choose coverage through your Mortgage Agent?

  1. The coverage I arrange for you moves with you whether you change properties or switch banks – this is unique as bank or solicitor offered coverage is tied to the mortgage only
  2. Coverage isn’t dependent on your place of employment or status (ex: layoffs, furlough, Covid disruptions)
  3. Work insurance is often not sufficient coverage – Mortgage Insurance is a great way to top-up existing coverage to protect your family
  4. No Risk Coverage – 60-Day money-back guarantee if you change your mind

No one enjoys talking about insurance but it is an important component of your overall financial plan. Make sure you have the right Life and Disability Insurance to cover your mortgage payments and help protect the people you love.

Give me a call or drop me an email for a no-obligation mortgage review – and if you have family or friends that could benefit from these services, I will welcome the introduction.

Be well and talk again soon,

Time for a Financial Health Check

General Trevor Bumstead 21 Apr

Whether you have grand plans for the upcoming year or are comfortable in your daily routine, it’s always a good idea to take a few moments throughout the year to take stock of your financial needs and goals. With the start of a new year there is no better time than now to do a quick financial health assessment.

As home ownership often represents your largest single asset, it is important to look at this investment as part of this process. Even if you have no intention of selling or are mortgage free, in today’s market of low interest rates and competitive mortgage products there is opportunity to leverage your hard-earned equity to improve your lifestyle, reduce financial stress, or focus on building long-term wealth.

With a booming real estate market we’ve seen the average home price go up significantly over the last 6+ months.  This is being driven by a shift in market timing due to Covid, a swing in supply vs. demand, as well as record low interest rates. Currently, there are quality mortgage products in the market going as low as 0.99%* for a purchase and 1.29%* on a refinance. What this means for you is smaller monthly payments and/or the ability to unlock more equity in your home.

I am a licensed mortgage professional that works for you – not the banks – and I will provide you with unbiased professional advice that is customized to fit your needs.

If you, or someone you know answers yes to any of the below questions – we should talk.

  1. Are you a First Time Home Buyer and not sure where to start?
  2. Are you thinking/planning on buying a new home this year?
  3. Is your current interest rate >2.49%?
  4. Would you like to improve your monthly cash flow?
  5. Are you struggling to manage your debt load?
  6. Do you have any major purchases coming up such as a renovation or vacation home?
  7. Is your mortgage up for renewal within the next 12 months?
  8. Do you have a bruised credit rating?

Give me a call or drop me an email for a no-obligation review – and if you have family or friends that could benefit from these services, I will welcome the introduction.

Be well and talk again soon.


*January – 2020 – For qualified buyers