Quote:
|
Originally Posted by Elli
My bank forced us to get mortgage insurance when we took the mortgage. It was mandatory.
|
That wouldn't be
Lender's Mortgage Insurance would it? Might have a different name elsewhere but here it's basically to ensure that the banks get paid out in full if you default on repayments. You are then still obligated to pay the insurance company the balance. It's mandatory if you're borrowing more than 80% of the value of the property and it's usually around 1-3% of the amount borrowed.
That's how it's typically done in Australia, it will probably vary in other parts of the world...