Harpreet currently provides his services to all of Southern Ontario whether you are a first time homebuyer, sophisticated real estate investor, or any step in between.


(416) 795-1919

Search Mortgage Corp. 100-50 Village Centre Place Mississauga, Ontario, L4Z 1V9 License #: 12652



Homebuyers have access to four different categories of insurance relating to their new purchase. Each protects a different aspect of the purchase.

At a glance the four insurances are:

Mortgage Default Insurance
Mortgage Creditor Insurance
Title Insurance
Homeowners Insurance

Details are as follows:

Mortgage Default Insurance

Mortgage default insurance is required when a borrower has less than a 20% down payment (above 5%). Referred to as a “high ratio mortgage”, it is required to be insured against default from one of the three mortgage default insurers. The insurance allows homebuyers to purchase their home without having a significant down payment, considering the current regulations state that 20% is a minimum. By obtaining the insurance this regulation can be bypassed. The insurance in this case protects the lender in the event of default, thus the risk is transferred from the lender to the insurer. A certain percentage of the total mortgage value is calculated based on the amount of down payment provided. The borrower is expected to pay this amount if the mortgage is high-ratio. He/she has two options; the borrower can either pay the amount up front, or let the lender pay and the amount added to the total mortgage value (usually a small increase in the monthly payment is observed). Sometimes a lender may require mortgage default insurance regardless of the down payment, in which case the lender will pay the premium. The lender almost always arranges for mortgage default insurance via a direct link through their systems. In Canada, we have one regulated insurer and two private insurers, being the Canada Mortgage and Housing Corporation (CMHC), Canada Guaranty, and Genworth Financial respectively. An additional benefit of having a CMHC insured mortgage is that when renegotiating before the maturity date you will only have to pay 3 months interest penalty, rather than the interest rate differential which can be quiet expensive.
To have a look at the current premiums click here or to calculate how much your premium will be have a look at our CMHC Insurance Calculator.

Mortgage Creditor Insurance

Mortgage creditor insurance provides protection for the borrower in the event that he/she encounters unforeseen circumstances which make it financially impossible to meet the terms of the mortgage commitment. The insurance company pays the lender on behalf of the borrower in the event of a claim. There are four categories of mortgage creditor insurance as follows:

Mortgage creditor life insurance: will pay the outstanding mortgage amount in the event of death
Mortgage creditor disability insurance: will pay the regular payment in the event of disability
Mortgage creditor job loss insurance: will pay the regular payment in the event of job loss
Mortgage creditor critical illness insurance: will pay the outstanding mortgage amount in the event of serious illness

It is common for these insurances to be bundled with other products by life insurance companies. For a professional assessment of your situation in regards to mortgage creditor insurance and available options, we can refer you to one of our knowledgable insurance partners.

Title Insurance

Although title insurance is not always mandatory, it is highly recommended. Title insurance compensates the insured (both the lender and borrower) for actual losses resulting from the title not being as stated in the policy. Generally, it is an insurance policy that insures the good and marketable title of a property as of the date of closing. It also ensures that the ownership interest in the property is properly registered and that it is free of claims or liens. The premium is only paid once and it protects the insured for the life of the ownership. Access to the title insurer is usually through a lawyer. The major insurers in Canada are First Canadian Title, Stewart Title, and Law Pro. Policies and coverages sometimes vary between providers so it is best to inquire accordingly. Some general protection and coverages are for the following:
Invalidity of a mortgage on title
Defects in title
Survey errors
Construction liens or encumbrances
Unregistered easements
Another party claiming interest in the property
Fraud or forgery

Homeowners Insurance

Homeowners insurance is not a requirement by law, but lenders will require you to obtain it. Homeowners insurance provides protection against disasters. Policies generally insure the home itself, contents, and the owner & his/her family against any liability or legal responsibility for any injuries or property damage caused to other people. Homeowners insurance often includes the following features:
Property insurance: protects the property and structures from events such as fire, wind, lightening, hail, vandalism
Liability insurance: covers the owner & family (including pets) from lawsuits for injury or damage that they cause to other people on their property
Personal belongings insurance: covers personal belongings (up to a certain amount) against theft or damage by an insured event
Additional insurance may be required for events such as flooding, earthquakes, and hurricanes. For a professional assessment of your situation in regards to homeowners insurance and available options, we can refer you to one of our knowledgable insurance partners.
For a more in-depth and professional review of your individual and personalized situation please give Harpreet Singh The Mortgage King a call at (416) 795-1919.