Member Protection: Creditor’s Insurance, Mortgage Protection Insurance, Deposit Insurance | BCU Financial – Buduchnist Credit Union

Creditor’s Insurance

Mortgage default insurance is required for borrowers who put down less than 20% on a down payment for a home. If you put down less than 20% of the home’s selling price as a down payment, then you will have to qualify for a high ratio mortgage. In addition to your mortgage payment, the federal government requires all high ratio mortgage borrowers to take out mortgage default insurance. This insurance protects lenders, in the event a borrower stops making mortgage payments and defaults on their mortgage loan. Mortgage default insurance costs homebuyers between 2.80% – 4.00% of their total mortgage amount. This insurance fee is added to the borrower’s monthly mortgage payment resulting in higher overall mortgage repayment costs.

There are three main providers of mortgage default insurance for high ratio mortgages: Canada Mortgage and Housing Corporation (CMHC), Sagen Mortgage Insurance Company Canada and Canada Guaranty.

Mortgage Protection

Mortgage life insurance will protect you and your family in the event of a death or illness. This insurance will pay off the outstanding balance of your mortgage if you die, become critically ill, or disabled, and therefore unable to work. BCU Financial offers Mortgage Protection Insurance through BCU Insurance. Our BCU Insurance consultants will design a policy for your particular circumstances and give you peace of mind knowing that your mortgage will be paid off in the event of unexpected illness or death.

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FSRA

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Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).

At Buduchnist Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).

Eligible deposits in all registered accounts with Ontario Credit Unions have unlimited deposit insurance coverage through the Financial Services Regulatory Authority (FSRA).

Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).

At Buduchnist Credit Union, eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).

Eligible deposits (not in registered accounts) with Ontario Credit Unions are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).

For more information visit: https://www.fsrao.ca/consumers/credit-unions-and-deposit-insurance

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