Why choose creditor insurance for your mortgage?

Unfortunately, sometimes unexpected events can throw a wrench into even the best-laid plans. An accident, losing your job through no fault of your own, or a significant health issue can occur at any time.

Any of these events could affect your ability to keep up with your mortgage loan payments, and in turn, your ability to continue living in your home. Whether buying your first home or refinancing your existing property, it’s important to consider creditor insurance and understand how it can help prevent disruptions to your mortgage loan payments in case of unexpected events. Choosing the right insurance coverage can help protect the lifestyle you and your family enjoy — not only today, but in the future.

Mortgage creditor insurance pays down or pays off your mortgage balance or pays toward the principal and interest of your mortgage payment following an insured event. The benefit is paid to the bank.

Mortgage default insurance is required for a high-ratio mortgage. The borrower pays the premium, and the insurance repays the lender for its losses if the borrower defaults on the mortgage.

Home and property insurance covers fire and other risks to the property, and lenders requires that the borrower keep this insurance in place throughout the life of the mortgage. Both the lender and the borrower are covered if there is damage to the property.

Title insurance protects against certain defects in title to the property. A lender may purchase a lender’s policy to protect its interest in title to the mortgage, and a homeowner may purchase an owner’s policy to protect their interest in title to the property.

Applying for CIBC mortgage creditor insurance is simple and can be done alongside your mortgage application making it easy to get the protection you need.

CIBC offers 4 types of mortgage creditor insurance coverages: Life Insurance, Critical Illness Insurance, Disability Insurance, and Disability Insurance Plus for disability and job loss coverage. Job loss coverage is unique to certain types of creditor insurance, including mortgage creditor insurance — and now, in addition to regular and part-time employees, self-employed, independent contractor and seasonally employed clients are eligible to apply. You can select multiple coverages, but the right coverage for you depends on your personal situation. Premiums are calculated based on your age at the time of application and do not change for the life of your mortgage.