Mortgage life insurance: know your rights
Your right to information about mortgage life insurance
Mortgage life insurance is an optional product that lenders or third parties, like an insurance company, may offer you.
When a lender offers you an optional product or service, they must:
- inform you about charges that apply
- get your express consent before providing it to you
- give you the option to cancel the product or service
A bank may offer you an optional product or service. In that case, they must provide a separate disclosure statement to you to before you consent to it.
Mortgage life insurance is different from mortgage loan insurance, also known as mortgage default insurance. You must buy mortgage loan insurance if your down payment is less than 20% of your home’s purchase price.
Information banks will provide about mortgage life insurance
Banks that are members of the Canadian Bankers Association (CBA) have adopted a code of conduct for authorized insurance activities. This code requires them to provide disclosure that is clear, simple and not misleading. This applies to documents that relate to authorized insurance products, which includes mortgage life insurance.
Banks will make this code available:
- at each of their branches in Canada where they offer products or services and at each of their points of service
- on each of their websites through which they offer products and services
- in writing, upon request
When these rights apply to you
These rights apply when you’re dealing with a federally regulated financial institution like a bank or federal credit union.
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