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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At BCU Financial, your eligible deposits are insured by FSRA for up to $250,000.

Financial Services Regulatory Authority (FSRA) is an agency of the Province of Ontario that provides deposit insurance to protect eligible deposits in Ontario credit unions in the event a credit union is unable to repay its depositors. Credit unions insured by FSRA pay premiums to FSRA to cover the cost of insuring your deposits. In the event that a credit union is unable to repay all of its deposits, FSRA pays these up to the maximum prescribed limit of $250,000 for deposits held in each of the separate categories of FSRA deposit insurance coverage.

FSRA insures deposits up to $250,000. It calculates your insured savings by combining the amounts in:

» Savings and chequing accounts
» Term deposits and GICs
» Money orders, certified cheques, and drafts issued by Ontario credit unions (that are payable to you and not yet cashed)

FSRA does not insure any of the following:

Member shares and investment shares issued by the credit union
» Mutual Funds
» Stocks, bonds, and debentures
» Treasury Bills
» Foreign currency deposits
» Contents of safety deposit boxes
» Securities held for safekeeping

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

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