Abdullah Shafique

Based on a true story!
A lot of people prefer going straight to the bank.

Little do they know, there is no harm in contacting a mortgage broker also.

A mortgage broker will present you with many options, and you can still have the choice with either getting a mortgage through your bank or making use of the cheaper options available to you through the broker.

What is default insurance?

The minimum down payment on a property without the need for insurance is 20%. If you wish for your down payment to be less than 20% (minimum of 5%), mortgage default insurance is required by law.

Reason: Default insurance minimizes the lender's risk, which results in better offered interest rates.

The insurance premium can be either paid upfront, or it can be added to the total loan amount.

Putting down a 5% payment is ideal for investors who wish their upfront costs to be minimum while purchasing a property.

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