It is undeniable, the purchase of a residential property represents the most important investment of a lifetime. This decision has its share of doubts and repercussions. It is therefore wise to inquire about the possibility of taking out loan insurance, because the question will certainly be asked when you meet your mortgage broker.
In addition to guiding you towards obtaining the best interest rate and the best terms for your mortgage, your Multi-Prêts broker will inform you on how to obtain a mortgage life insurance proposal, without obligation. from you. Beyond the investment, your home also represents part of your retirement fund and your inheritance, hence the importance of protecting it from the vagaries of life.
Loan insurance in the event of death
In the event of death, the surviving spouse may remain in the residence without having to assume an additional financial obligation relating to the mortgage loan contracted. Indeed, the balance of the loan will be reimbursed by the banking institution. Since the purchase of a house is often calculated in the light of the income of both spouses, such protection is advisable. When a person survives another, he must be able to qualify for a loan since it must be re-registered in the name of the survivor. If the couple’s income was essential for qualification, the surviving person would inherit the property but would not be able to repay the joint loan. Therefore, she should sell her property.
Loan insurance in the event of disability
This last observation is equally valid if one of the spouses suffers from a serious illness or becomes disabled. Loan insurance would then make it possible to repay the monthly mortgage payments during a period determined at the signing of the contract. The period may vary in months or even be up to a certain age.
Finally, do not let the complexity of such a transaction discourage you from your ambition to become a homeowner. Especially since certain tools, such as loan insurance, exist to take your weight off your shoulders! Learn more about our mortgage prequalification tool or consult our buying guide.
- Your home also represents part of your retirement fund and your inheritance, hence the importance of protecting it from the vagaries of life.
- Since the purchase of a house is often calculated in the light of the couple’s income, such protection is advisable in the event that one of the spouses becomes the sole owner.
- Several other protective measures are available to buyers, whether through your financial institution or the government.