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Can I get mortgage insurance if I’m on long-term disability?
– moneysense.ca
Q: I just went on long-term disability but I’m worried. I didn’t get mortgage insurance, can I still get this type of insurance?
— D. Evans, Ontario
Steve Garganis, mortgage broker and editor of CanadaMortgageNews.ca:
The answer is probably not. However, to be sure, check with your insurance provider.
Sadly, your situation is another person’s lesson. For those that are about to get a mortgage, here’s a tip: Take the mortgage insurance offered when their mortgage is arranged. It’s not the cheapest, but it’s easier to get approved. But don’t stop there. Next, speak to an insurance advisor to see if you qualify for cheaper coverage. Once you qualify for more cost-effective insurance coverage, cancel the mortgage provider’s insurance. Most insurance providers allow you to cancel and get your money back within 30 days.
The good news, if you discover during the course of applying for term life or disability insurance that you have a previously unknown condition, at least you will have coverage with your mortgage provider…
How to Save for a Home Down Payment by Investing
– ratesupermarket.ca
It’s something you have likely heard dozens of times before if you’re planning to buy a home: You must have enough saved up for a down payment! While it’s recommended you put down 20% of your new property’s value, you can technically go as low as 5% on the first $500,000 of the home price or 10% on any portion above that price. Homes prices over $1-million require a 20% down payment as a minimum.
But how are you supposed to come up with all that money? As a Millennial, it may seem like an impossible feat – especially if you’re trying to buy into a market like Toronto or Vancouver where the average home price is rising by hundreds of dollars each month. Fear not, there are ways to make your down payment, have your home and live in it too! And one of the best ways to come up with that cash is through investing.
Since any down payment less than 20% requires you to purchase mortgage default insurance, you want to try and put down as much as possible. You’ll have lower monthly mortgage payments and you’ll pay less in interest over time…
