Mortgage Insurance :
Bank of Montréal
User our online calculator to compare Bank of Montréal's offer. Shopping for mortgage insurance has never been simpler!
Mortgage Insurance : Bank of Montréal
User our online calculator to compare Bank of Montréal's offer. Shopping for mortgage insurance has never been simpler!
If you decide to sign up for a mortgage with the Bank of Montreal, you can be sure that they will offer you mortgage insurance. But is it a good choice ?
What kind of mortgage insurance does the Bank of Montreal offer? It is a kind of group insurance, between the Bank of Montreal (which is not an insurer) and Sun Life of Canada, which you are the subject of. This type of contract is tailored to the mortgage provider, rather than the individual. Since this is group insurance, it is not flexible to suit your needs. In other words, you own your home, but rent your insurance policy, even if you pay premiums to the Bank of Montreal.
Since this is a form of group insurance, the insurance that BMO provides does not cover the people you choose if their names are not listed on the mortgage. For example, if you take out the mortgage in your own name, it will be impossible to insure your spouse, since their name is not on the mortgage.
Fortunately, there are other types of mortgage insurance available. Personal (individual) life mortgage insurance is offered by InfoPrimes, and although better and more flexible, is generally less expensive than the Bank of Montreal. 87.9% of the consumers who make a submission on our website can save with an individual-type insurance policy.
Since this is not group insurance sold by a Bank of Montreal loan agent, the application is completed by an insurance professional who has a license and liability insurance covering errors and omissions. They are also required by the Financial Markets Authority to take continuing education courses in order to better serve you and answer your questions.
A single insurance policy for a single mortgage
You should also make sure to check the eligibility requirements before you sign an insurance form with BMO. The insurance will not cover more than one loan at a time, and it will only cover a loan if it’s for the principal residence of the owner, his spouse, or the person who has guaranteed the loan. Duplexes, triplexes, and others do not qualify as a principal residence.
With InfoPrimes, not only can you cover multiple mortgages with a single contract, but you will also have no restrictions on the kind of property that you can have covered.
Individual insurance offered by InfoPrimes
Here is InfoPrimes’ offer: Complete flexibility, insurance that isn’t related to your lender (BMO), a personal contract from a major Canadian insurer, no changes to your insurance even if you leave or refinance your BMO loan, the ability to name your beneficiary of choice, and the guarantee that even if your health changes, you can keep your contract or convert to a permanent individual plan until you die.
Compare prices between BMO and several other companies
InfoPrimes, with its mortgage insurance calculator, lets you better understand the full cost of purchasing mortgage insurance and all of the related fees. You can compare your mortgage insurance premium with BMO to several other life insurance companies.
Price Comparison
| Bank of Montréal | Infoprimes | Savings After 25 Years | |
|---|---|---|---|
| Male, 45 years old, non-smoker Mortgage life insurance for a loan of $ 150 000. |
$ 22.32 | $ 47.12 | $ 10,648.00 |
| Husband and Wife, 30 years old, non-smokers Mortgage life and disability insurance. For a loan of $ 250 000. |
$ 78.21 | $ 41.45 | $ 10,923.00 |
| Husband and Wife, 53 years old, non-smokers Mortgage life and disability insurance for a loan of $ 200 000. |
$ 311.57 | $ 154.53 | $ 46,941.00 |
Is mortgage insurance mandatory ?
No. According to Article 439 of the Act respecting the distribution of financial products and services :
“A distributor may not require the entering into of a subordinate contractual obligation for the customer to enter into a contract of insurance with the specified insurer. He may not exercise undue pressure on the client or use fraudulent tactics to induce him to purchase a financial product or service.”
Note that, under certain circumstances, financial institutions may ask you to obtain mortgage life insurance before they approve a loan. However, they cannot force you to obtain that insurance from their financial institution. See Article 22.
If your loan is for commercial or rental property and you have written confirmation which confirms that this life insurance (not applicable to disability) is required for acceptance of the loan, your premiums will be tax deductible under certain conditions. See Article 20-1 E.2.
Understanding mortgage insurance with the Bank of Montreal
In this table, you will notice that several clauses can be more restrictive in a group insurance contract than the individual insurance contract with InfoPrimes. In case of death or disability, no benefits are payable if the death or disability was caused by a condition that existed six months before the signing of the contract. With InfoPrimes, the risk selection is made from the start of the contract. So, there is no grey area.
General – Applies to all insurance products
| Bank of Montréal | Infoprimes | |
|---|---|---|
| Who owns the contract ? | The Bank | The owner of your choice. |
| What type of insurance is available ? | Sun-Life Group - 51007-G part C | Individual |
| Will I receive a contract ? | No (You will only receive proof of a contract) | Yes |
| Preexisting conditions (Conditions for which you have consulted with or been treated by a doctor) | In the event of death or disability within six months of the beginning of the contract, which results from a preexisting condition, no benefits are payable. | The risk selection is made at the start of the contract. No exceptions to coverage.. |
| Eligibility | Only one mortgage at a time. Only the principal residence of the owner or his spouse or mortgage guarantor. A duplex, triplex, etc, does not qualify as a principal residence. | Any loan from a financial institution or recognized organization providing for a minimum payment over a fixed period of time. *Even if they are different and there is more than one. |
| Can I change my mortgage lender and keep my insurance ? | No | Yes |
| Who receives the benefit ? | The Bank | The beneficiary of your choice (spouse, children, etc.) |
| How much is insured ? | The total amount owed | Your Choice |
| Are premiums guaranteed ? | No | Yes |
| Is there a tax payable on the premium ? | A provincial tax is applied in Quebec (9%) and Ontario (8%). There are no taxes in any other provinces. | No. This is an insurance premium of individual persons, so the tax doesn’t apply. |
| Can term insurance be converted to permanent insurance ? | No | Yes |
| Do I pay my premiums with my mortgage payment ? | Yes | It’s up to you |
| If I don’t pay a mortgage rider, does this end my insurance ? | Yes, after three months due to insufficient funds in your account. Page 7. | No, because your insurance and your mortgage are not linked together |
| Can people who aren’t on the mortgage be insured ? | No | Yes |
| Is the pricing based on tobacco usage? | No | Yes |
Mortgage Life Insurance
| Bank of Montréal | Infoprimes | |
|---|---|---|
| What is the maximum age at which insurance can be purchased ? | 64, depending on your health. | 85, depending on your health. |
| At what age does the insurance end ? | 70 years | Your choice |
| What is the maximum amount of life insurance ? | $ 600 000 | Unlimited |
| What happens in the case of multiple insured parties who die simultaneously ? | The balance of the loan will be paid off | You receive the total amount that you chose at the beginning (eg, $ 200 000 per person). |
Mortgage Disability Insurance
| Bank of Montréal | Infoprimes | |
|---|---|---|
| Can I get disability insurance without buying life insurance ? | No | Yes |
| What is the maximum age at which insurance can be purchased? | 64 years, depending on your health. | 64 years |
| What is the maximum amount of disability insurance ? | $ 3 000 / month | $ 10 000 / month |
| Class of Occupation | Not available. | Depending on your occupation, generally better. |
| Can I choose the percentage of the payment that is protected ? | Yes. You can choose between 50% and 100%, at intervals of 10% | You get to choose, and can even add other loans. |
| How long do I have to be disabled in order to make a claim? | 60 days. No benefits are payable if total disability occurs within 6 months of the start of coverage as a result of a preexisting condition. | You choose between 30, 60, and 90 days. |
| What is the maximum disability time permissible ? | 24 months per event and a total of 48 months’ worth of monthly payments. | You choose: 24 months, 60 months, or until you reach age 65. |
| Own-occupation (which prevents the insured from engaging in all remunerative work)) | 24 months | Depending on your occupation, it may vary between 24 months, 60 months, or until you reach age 65. |
| What happens in the case of two insured persons simultaneously becoming disabled ? | Benefits are only paid in respect of one disability. | You choose |
Critical Illness Mortgage Insurance
| Bank of Montréal | Infoprimes | |
|---|---|---|
| What is the maximum age at which insurance can be purchased ? | Not available | 64 years |
| Can I get critical illness insurance without purchasing life insurance? | Not available | Yes |
| What is the maximum amount of insurance ? | Not available | You choose |
| What diseases are covered? | Not available | You choose between 3, 4 or 25 diseases. |
Can I change my mortgage insurance ?
Individual mortgage insurance, like all contracts offered by InfoPrimes, offers many advantages when compared with the group insurance products offered by most financial institutions. Not only will you have better protection, but the price of our insurance is often cheaper!
If you want to change your insurance to InfoPrimes, rest assured that you can cancel your mortgage insurance with The Bank of Montreal at any time without being penalized.
WARNING: It is important that you keep your current insurance in effect until your new policy is accepted, issued, and in force.
Compare and save !
To help you learn more, and, most importantly, help you plan your purchase, InfoPrimes offers a mortgage insurance calculator. With this handy tool, you can compare the major banks’ rates, such as those of the Bank of Montreal, with InfoPrimes. You will also be better informed about the protection offered, and the fees involved, to make a responsible, well-reasoned decision.
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