Do you buy mortgage insurance with every home loan that you take?
Is it worth buying?
Typically how much do you pay for the insurance?
Do you buy mortgage insurance with every home loan that you take?
Is it worth buying?
Typically how much do you pay for the insurance?
I did.Originally Posted by ccsee
The premium depends on the amount of insurance you take up, the length of time covered, your health status, whether you smoke etc.
It is worthwhile especially if you have young kids and you would like to be covered until they are financially independent.
We are in the process of getting one for peace of mind and also becos the loan amt is huge. Yr gender, age and health history matters. Yr application may even be rejected.Originally Posted by ccsee
Is it for investment or owner occupied units?Originally Posted by ccsee
2nd property for investment..and no children to worry about ..Originally Posted by DC33_2008
In this case, I won't bother about mortgage insurance at all.Originally Posted by ccsee
If the worse happens, the person who inherits your property can sell it if he can't service the loan.
Thks for answering it.Originally Posted by buttercarp
But wdnt it be better to get a MRTA which will pay off the outstanding loan? That means the person who inherits, wife or kids, can sell it off and keep the full amount of money of sale with them as the loan is paid off.Originally Posted by buttercarp
Also what if the property depreciates when you pass away.
Looking at MRTA yearly rates now, they are so much cheaper than what a property is valued at so why save a thousand a year for a property you got for a million.
1000 per year over 30 years. 30k (example... even if more , it pales in comparison to your property value.)
Full loan paid
Family can choose to stay or sell if it is additional property. Even rent out. All passive income.
Originally Posted by RaZr
you are right. everything boils down to what your future plan entails and more importantly, what is your present day-to-day cashflow now and in the future.
buttercarp is referring to the situation where one may already be fully or over leveraged, in which case, the mortgage insurance becomes less necessary.
another way of looking at this is that the 2nd property is already THE insurance, which one can liquidate (though takes time) when needed.