Mortgage Insurance? What is it? Commonly it is thought that Mortgage Insurance protects the borrower. In most instances it does not! This insurance premium that you pay when you apply for the loan is to ensure the lender is protected from losses that may be incurred if you were to default on your loan agreement. Generally you will pay this premium if you are borrowing more than 80% of what your property is worth.
If you are looking at ways to protect yourself if you cannot for one reason or the other make your mortgage repayments, you should consider options such as Income Protection Insurance. Have a chat to the Team at Finance Know How today to discuss these options!

Tags: mortgage insurance finance