Mortgage Tip: Mortgage Default Insurance

Why should I pay for Mortgage Default Insurance?

If your down payment is less than 20% of your purchase price, you must pay for mortgage default insurance.  The premiums vary from 0.60% to 3.35% of the borrowed amount.

Tip

The bigger your down payment, the lower your mortgage default insurance premium.  The premium can be added to your mortgage loan and included in your mortgage payments, however, you will pay interest on the TOTAL AMOUNT.

Article from: www. Canada.ca