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), Genworth Financial Canada and Canada Guaranty.
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.
Effective June 8, 2019, the Financial Services Regulatory Authority (FSRA) has assumed the regulatory functions of the Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corporation of Ontario (DICO). FSRA is in the process of moving content from this website to www.fsrao.ca.
Visit www.fsrao.ca for updates
At BCU Financial, your eligible deposits are insured by DICO for up to $250,000.
Deposit Insurance Corporation of Ontario (DICO) 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 DICO pay premiums to DICO to cover the cost of insuring your deposits. In the event that a credit union is unable to repay all of its deposits, DICO pays these up to the maximum prescribed limit of $250,000 for deposits held in each of the separate categories of DICO deposit insurance coverage.
DICO 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)
DICO 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 www.dico.com