One of the most profitable products for the bank in the financial services market is a life insurance offer that the bank tries to fob on to its client at the slightest opportunity (when making a mortgage, opening credit lines or receiving credit cards). As a rule, it is often invested with a beautiful formulation of “creditor insurance” (Creditor Insurance). Due to the fact that bankers have “lowered” sales quotas of insurance policies, they often use tactics known as the “Assumption Method”. When using this method, the seller of services initially expects your potential consent to purchase goods and the option of refusing this service is not even considered. Instead of letting you know that your life insurance is NOT mandatory when you make a mortgage, you are simply confronted with the fact that, say, “the monthly payments for the house will be such and such, and the payment of life insurance will be such Sign here, and we will do the rest of the paper routine for you. ”That’s just so easy to do you didn’t pay attention to a little nuance and ultimately pay for insurance that will cost you much more and provide much less opportunity than exactly issued by an insurance agent. I do not deny the benefits of insurance, but I would strongly recommend to draw up a life insurance contract with agents specializing in the sale of various types of insurance, and not in banks or credit unions where you Rete money loan.
It is best to apply for a loan at a bank, already having such a contract in your hands. As a last resort, as a temporary measure, you can use insurance provided by the bank if the required specialist was not at hand. But try to get rid of this insurance imposed on you by the creditor as quickly as possible. Do not tighten, believe me, every day it will be harder to do. Lender insurance is the insurance of your debts. It can help you in the event of disability, death or illness: your debt is paid off, or in case of disability payments are made for you. It doesn’t sound bad, but in practice it’s not so serene.
Again, there are several different strategies that depend on your plans for real estate, but from experience I can say that I often advise you to take a mortgage for a period of 3 years, especially for new immigrants, especially if you paid 20% or more down. According to statistics, 78% of all mortgages in Canada are interrupted, for one reason or another, at 36-38 months. Well, for new immigrants by this time they already understand their financial situation much better and are more likely to be able to find a better use of their funds than simply saving 2.5–3% of interest with opportunities to receive from 6% to 30% return.