Getting or applying for a mortgage is only one step of the process, you also need mortgage protection, and for that, you’ve come to the right place.

At The Mortgage Architect, our mortgage planners will take care of all your mortgage needs, including mortgage protection. But first things first, you need to understand what mortgage protection is and why you need it.

What is Mortgage Protection and Why Do You Need It?

Mortgage protection is a type of insurance policy that covers your mortgage payment in the case of the death of a policyholder. Mortgage protection insurance serves a similar purpose as life insurance and medical insurance policies that are designed to give you peace of mind. It will run for the full term of your mortgage.

While technically it can be more of an insurance for the lender itself, mortgage protection will help you pay off your home loan in the case of any unforeseen circumstances without having to worry about losing your home.

When Do You Not Need Mortgage Protection?

If you are over 50 years old, you might not need to apply for mortgage protection, and your lender might agree to provide the home loan. The lender may also provide the mortgage if you can’t obtain the insurance for any other reason.

Additionally, if you are applying for a mortgage for an investment property or any other property other than your home or principal private residence, you don’t need mortgage protection

What are the Different Types of Mortgage Protection?

Serious Illness: Your basic mortgage protection only covers your mortgage payment in the case of your death. With serious illness cover, you can get your policy to cover the mortgage payment in case you contract any serious illness.

Level Term: Under this policy, the premium and the insured amount remain the same throughout the term of the policy. In case of your death, the policy will pay off any remaining mortgage amount, and the remaining balance after that can go to your estate. 

Does Mortgage Protection Cost the Same Across All Life Insurance Companies?

The cost of mortgage protection can be different for different companies and takes into account several factors, such as your age, medical history and more.