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Insuring your Mortgage

Closing the deal isn't a big step. It's actually nine small steps. Understanding each one will make sure you don't miss a thing.

View rates and new offers – plus, try our mortgage calculators.


Mortgage Balance Protection

Designed to pay off or reduce your mortgage balance in the event of death or a covered critical illness.

Life Insurance

Pays off or reduces your mortgage if the unexpected occurs, giving you and your family some security.

Eligibility

You can apply for Life Insurance when you first apply for a mortgage or anytime after if you are:

  • The borrower or co-borrower on a mortgage
  • A Canadian resident between 18 and 65 years

Benefits

Pays a percentage of your unpaid mortgage balance if you pass away. This insurance can cover 50% or 100% of the balance up to the maximum insurable limit of $600,000. Sun Life pays insurance claims directly to BMO.

Underwriting

You're automatically approved if you meet eligibility requirements and the amount of requested coverage is $50,000 or less. If you are applying for coverage greater than $50,000, you'll need to answer a health status question.

  • If you answer "No," you're approved
  • If you answer "Yes," Sun Life will do a confidential interview to see if you're eligible

Terms & Conditions

The complete terms and conditions, including exclusions and limitations of this coverage are outlined in the Certificate of Insurance that you will receive when you apply.

Premiums

Your insurance premium, plus any applicable provincial sales tax is charged in arrears and collected by BMO with your mortgage payment. Life Insurance premiums are based on your age when you apply and do not change for the duration of your coverage.

Try our Mortgage Protection Calculator

Cancellation

You can cancel your insurance at any time. If you cancel within the first thirty (30) days of being covered, any premiums you have paid will be refunded.

Critical Illness Insurance

Pays off or lowers your mortgage if you become very ill or need surgery covered by this plan.

Eligibility

You can apply for Critical Illness Insurance when you first apply for a mortgage or anytime after if you are:

  • The borrower or co-borrower on a Mortgage
  • A Canadian resident between 18 and 55 years old
  • Have also applied for Life Insurance

Benefits

Covers 50% or 100% of the mortgage balance up to $450,000. The amount of Critical Illness insurance coverage cannot exceed the amount of your life insurance coverage. The covered illnesses are:

  • Heart attack
  • Stroke
  • Cancer
  • Coronary artery bypass surgery

Sun Life will pay BMO 50% of the unpaid balance of your mortgage—if you select 50% coverage. Only one Critical Insurance benefit is paid per insured. For more details, see the Certificate of Insurance section "What Happens if a Balance Protection benefit doesn't fully pay out your Mortgage."

Underwriting

You're automatically approved if you meet eligibility requirements and the amount of requested coverage is $50,000 or less. If you are applying for coverage greater than $50,000 you'll need to answer one health status question.

  • If you answer "No," you're approved
  • If you answer "Yes," Sun Life will do a confidential interview to see if you're eligible

Terms & Conditions

The complete terms and conditions, including exclusions and limitations of this coverage are outlined in the Certificate of Insurance that you will receive when you apply.

Premiums

Your insurance premium, plus any applicable provincial sales tax is charged in arrears and collected by BMO with your mortgage payment. Critical Illness Insurance premiums are based on your age when you apply and do not change for the duration of your coverage.

Try our Mortgage Protection Calculator

Cancellation

You can cancel your insurance at any time. If you cancel within the first thirty (30) days of being covered, any premiums you have paid will be refunded.

Mortgage Payment Protection

Designed to pay or reduce your regular mortgage payments in the event of disability or job loss.

Disability Insurance

Pays or reduces your mortgage payment should you become disabled, so you can focus on recovery.

Eligibility

You can apply for Disability Insurance when you first apply for a mortgage or anytime after if you are:

  • The borrower or co-borrower on a Mortgage
  • A Canadian resident between 18 and 65 years
  • Actively working*

Benefits

Covers 50% or 100% of the monthly payment up to a maximum insurable limit of $3000. Disability benefits are paid for up to 24 months per disability. There is a 30–day qualifying period during which time no benefits will be paid.

Underwriting

You're automatically approved if you meet eligibility requirements and the amount of requested coverage is $50,000 or less. If you are applying for coverage greater than $50,000, you'll need to answer one health status question.

  • If you answer "No," you're approved
  • If you answer "Yes," Sun Life will conduct a confidential interview to determine eligibility

Terms & Conditions

The complete terms and conditions, including exclusions and limitations of this coverage are outlined in the Certificate of Insurance that you will receive when you apply.

Premiums

Your insurance premium, plus any applicable provincial sales tax is charged in arrears and collected by BMO with your mortgage payment. Life Insurance premiums are based on your age when you apply and do not change for the duration of your coverage.

Try our Mortgage Protection Calculator

Cancellation

You can cancel your insurance at any time. If you cancel within the first thirty (30) days of being covered, any premiums you have paid will be refunded.

Job Loss Insurance

Pays or reduces your mortgage payment should you become unemployed. Taking care of your biggest liability and safeguarding your credit rating will give you peace of mind while you job search.

Eligibility

You can apply for Job Loss Insurance when you first apply for a mortgage or anytime after if you:

  • Are the borrower or co-borrower on a Mortgage
  • Are a Canadian resident between 18 and 55 years old
  • Have applied for Disability Insurance
  • Have been continuously employed for 6 months with the same employer and are eligible to receive Employment Insurance benefits

You are not eligible to enroll if

  • You are self-employed, an independent contractor or working for a family business or a business in which you have a controlling interest
  • You have been advised of your pending unemployment

Benefits

Covers 50% or 100% of your monthly payment up to the maximum insurable limit of $3,000 per month. Sun Life pays insurance claims directly to BMO.

  • The amount of Job Loss coverage cannot exceed the amount of Disability Insurance coverage

You get Job Loss Benefits for the same period you receive Employment Insurance Benefits, up to a maximum of 6 months per job loss. There is a qualifying period of 60 days when you cannot receive benefits.

Underwriting

There are no health status questions to answer for Job Loss. You are automatically approved if you meet the eligibility criteria.

Terms & Conditions

The complete terms and conditions, including exclusions and limitations of this coverage are outlined in the Certificate of Insurance that you will receive when you apply.

Premiums

Your insurance premium, plus any applicable provincial sales tax is charged in arrears and collected by BMO with your mortgage payment. Job Loss Insurance premiums are based on your age when you apply and do not change for the duration of your coverage.

Try our Mortgage Protection Calculator

Cancellation

You can cancel your insurance at any time. If you cancel within the first thirty (30) days of being covered, any premiums you have paid will be refunded.

Mortgage Default Insurance

The Canadian government requires Mortgage Default Insurance when a buyer pays less than a 20% down payment.
This insurance is not available for mortgages with an amortization of greater than 25 years or a purchase price of a million dollars or more.

Who Provides Mortgage Default Insurance?

Mortgage default insurance is offered by a number of different insurers, such as Canada Mortgage and Housing Corporation (CMHC), Genworth Financial Canada (GE), Canada Guaranty Mortgage Insurance Company or another approved private insurer.


Who Pays?

You buy Mortgage Default Insurance at the same time a mortgage begins. The cost is a one-time charge that you can pay at that time or add to your mortgage balance. Applicable government sales taxes must be paid up front.


Who Is Covered?

It is important to understand that the Mortgage Default Insurance provides protection to only the mortgage lending institution and not to the homeowner.

How Is the Cost Determined?

The cost of mortgage default insurance is calculated by multiplying the amount of funds that are being borrowed by the mortgage default insurance premium, which typically varies between 0.6% and 6.5%. Premiums vary depending on your mortgage amount and the size of your down payment.

How do I know which premium to use?

The cost of Mortgage Default Insurance premiums comes from calculating your loan-to-value (LTV) ratio. Just divide the amount you're borrowing by the value of the property. Check out examples of mortgage default insurance premiums at Canada Mortgage and Housing Corporation (CMHC)

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*Actively working means you are regularly working a minimum of 25 hours per week and are able to perform the regular duties of your job. For seasonal workers, you must be capable of performing your regular duties.