Mortgage Insurance is essentially life insurance that decreases with the value of your mortgage.  When you sign for your mortgage, you are usually asked to few health questions to "qualify" for life insurance and sometimes a critical Illness and/or disability benefit.  In most cases, mortgage insurance is advisable at the time of purchase since it can be a very convenient way to insure yourself if you answered the questions properly and honestly.

The Bank of Canada has increased its prime rate by 0.75% since September, and the banks have followed with their mortgage rates. To my mind, the time has come to seriously consider locking in to a long-term mortgage. This is the first time I have made this statement since just before the mortgage rate 1994 spike -- foreshadowed as it was by eight weeks of free-falling Canada bond prices -- so this is not a recommendation I make lightly.

Many years of rate watching has made sophisticated borrowers aware that the prime rate ---which drives variable rate mortgages -- move independently of the bond market yields, which drive longer-term mortgage rates of different terms.

The recent upsurge in the Bank of Canada prime rate, to 3.25% after years at stable low levels in the 2% range indicates that justifiably concerned the economy may be overheating.

Bond yields and thus mortgage rates have stayed relatively low and stable over the past decade, as economic performance has been generally strong. However, the picture is distorted by the first signs of a rare interest rate phenomenon -- a flattening, and potentially inverted yield curve.

Canada Mortgage Rates

* Variable Rate Mortgage In Ontario

The Variable-Rate Mortgage is offered at the prime rate less 0.25%* and is adjusted in every months. That’s why one can enjoy a discount on the lowest possible rate on the market.

There are the two payment options are offered: fixed and variable payments.

* Fixed payment is based on the rate for the minimum 5-year term in effect when the loan is opened.

* Variable payment is adjusted monthly in relation to interest rate movements and in keeping with there maining amortization.

If you have further query please contact Canada Insurance Plan.