There are two parts to every mortgage payment – the principle and interest. Added upon that may be your Loan Default Insurance (or Loan Insurance) payments, plus a Lender Fee. As well, Creditor Life and Disability Insurance should be bundled in.

Mortgage Payment Terms:

Principal: The total amount owing.

Interest: Percentage owing to the lending institute for borrowing privileges.

Mortgage Loan (or Default) Insurance: Applied to all mortgage holders who are unable to provide at least a 20 per cent down payment.

Lender Fee: For high ratio mortgages that may not be covered by Mortgage Loan Insurance.

Property Taxes: Applied by municipalities, property taxes can be made a part of your regular mortgage payments. As property taxes can be a large yearly expense, often lenders place your property tax portion of your payments in a secondary account in order to remit payment on time and in full. This is a very good way to ensure your taxes are always paid without even thinking about it.

Creditor Insurance: This is a very good type of insurance that ensures families are taken care of should something happen to the borrower. If you don’t already have life insurance this is pivotal.

Average Mortgage Loan
Default Insurance Payments

Loan to Value (LTV)
90.1%-95% LTV
(borrowed down payment)

90.1%-95% LTV

85.1%-90% LTV

80.1%-85% LTV

Mortgage Loan Insurance Premium
3.85%
 

3.60%

2.40%

1.80%