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What is meant by mortgage insurance premium?

April 26, 2017meant mortgage insurance Premium

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What is meant by mortgage insurance premium?

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A – The mortgage insurance premium or mortgage loan insurance as it is better known is provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and GE Capital Mortgage Insurance Company, an approved private corporation. New players such as AIG United Guarantee Insurance Corporation have just entered the market and as time goes on it is likely that we will see more options. Competition is always good, so this should assist in bringing these loan premiums further down as time goes by. In general, this insurance is required by law to ensure lenders against defaults on mortgages with a loan to value ratio of more than 75%. For an update of current insurance premiums that are being charged for each 5% increase in ones down payment between 100% and 75%, please click here and you will be taken the CMHC website. Keep in mind the Mortgage Loan Insurance is not the same as Mortgage Life Insurance.