If your bank offers this product, the answer should be a hard no.

Mortgage Insurance – If your bank offers this product, the answer should be a hard no.

Rob Carrick says you should buy mortgage insurance from an insurance company, not your bank! I took a deeper dive into this question, and I fully support Rob’s point of view, but thought I would add a bit more content to his editorial. Whether it’s better to buy mortgage insurance from a bank or an insurance company in Ontario depends on various factors, and there isn’t a one-size-fits-all answer. Here are some considerations to help you make an informed decision:

Coverage Options:

Banks: Banks often partner with insurance companies to offer coverage. The options may be limited, and customization might be less flexible.

Insurance Companies: Standalone insurance companies may offer a wider range of coverage options, allowing you to tailor your policy to better suit your needs.

Cost:

Banks: While banks may offer competitive rates, it’s essential to compare them with quotes from independent insurance providers.

Insurance Companies: Shopping around and obtaining quotes from various insurance companies can help you find the best rates.

Customer Service:

Banks: Some people prefer the convenience of bundling financial products with a single institution. However, customer service can vary.

Insurance Companies: Dedicated insurance companies may offer specialized customer service and claims support.

Policy Flexibility:

Banks: Policies from banks might be less flexible in terms of coverage and customization.

Insurance Companies: Independent insurance providers often offer more flexibility in tailoring policies to your specific needs.

Reviews and Reputation:

Banks: Check customer reviews and the reputation of the insurance products offered by the bank.

Insurance Companies: Research reviews and ratings for various insurance companies to gauge customer satisfaction.

Claims Process:

Banks: Understand the claims process offered by the bank and whether it meets your expectations.

Insurance Companies: Check the reputation of insurance companies in terms of how smoothly they handle claims.

Discounts and Bundling:

Banks: Consider any discounts or benefits offered when bundling mortgage insurance with other banking products.

Insurance Companies: Independent insurers may also offer discounts for bundling home and auto insurance or other policies.

Policy Exclusions and Inclusions:

Banks: Carefully review the policy to understand any exclusions or limitations.

Insurance Companies: Similarly, review policies from insurance companies for coverage details.

It’s advisable to shop around, obtain quotes from different sources, and carefully compare the coverage, terms, and costs before making a decision. Additionally, consider seeking advice from an insurance broker who can help you navigate the options available in the market.

Read in The Globe and Mail

Check out our article on Tax Challenges When Dealing With an Estate