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Insurance for Home Loans

Insurance comes in the following forms:

Mortgage Protection Insurance

• Insurance which protects the borrower for loss of income resulting from temporary or permanent physical disability.

Lender's Mortgage Insurance

• Insurance which protects the lender for loss resulting from proceeds from the sale of mortgaged property being insufficient to clear the debt in full.
• Lender's Mortgage Insurance is paid by the borrower and is generally payable when borrowing 80% or greater of the purchase price. Mortgage Insurance may be required below this amount by some lenders, or for some loan products. For more information see our page Mortgage Insurance.

Home Building Insurance

• Insurance covering damage or destruction of buildings.
• Building Insurance becomes the responsibility of the purchaser once Purchase Contract is signed.
• Insurance which protects the lender for loss resulting from damage or destruction of a Strata Title property should it be uninsured or underinsured by the body corporate.

Life Insurance

• Insurance with a specified amount to be paid upon the death of the insured.