Key takeaways:

• Mortgage protection insurance, like Mortgage Life Insurance and Mortgage Critical Illness Insurance, are types of optional coverage you can purchase to help pay towards the outstanding balance of your mortgage in the case of unexpected covered events — like death or covered critical illness.
• Similarly, life and critical illness coverage is available to help protect your TD Home Equity FlexLine
• These two types of insurance are optional regardless of your down payment, while Canadian Mortgage and Housing Corporation (CMHC) mortgage loan default insurance is required by Canadian law if you have a down payment of less than 20% the price of your home

Congratulations on your new home! Your offer was accepted and you secured financing from your lender.

As you dream in technicolour paint swatches and furniture layouts, you might soon snap back to the real world once you start fielding questions like, "Have you considered mortgage protection insurance?"

You might be tempted to answer with yet another question: "What exactly is mortgage protection insurance?"

Here's the thing: the time between your offer being accepted and your closing date might feel even more overwhelming than the house hunting process itself. You're living among moving boxes, plotting what you need to do in your new place, and making some of the biggest financial decisions of your life – all at once.

One area to navigate is insurance, specifically optional forms of coverage like mortgage protection insurance.

Even if you're staying in your current home and renewing your mortgage, you might consider this type of coverage .

Here's how this type of insurance works.

What is mortgage protection insurance?

Mortgage protection insurance is an optional mortgage insurance coverage designed to help pay the outstanding balance of your mortgage should the unthinkable happen (e.g., you pass away or suffer a covered critical illness) during your coverage term. You typically apply for this type of coverage when opening or renewing a mortgage, however you can apply for it at any time throughout your mortgage provided that you meet the eligibility requirements.

At TD, Mortgage Life Insurance can pay up to $1 million towards:

• Your outstanding TD Mortgage balance (less any arrears, or any overdue payments) should you pass away or experience a covered terminal illness or covered terminal illness or accidental dismemberment
• Discharge fees
• Prepayment charges
• Any interest owing

Mortgage Critical Illness Insurance (available only with Mortgage Life Insurance) is another type of optional insurance that can help pay off your outstanding TD mortgage balance if you suffer a covered illness.

What type of coverage is available for TD Home Equity FlexLine (HELOC)?

If you have a TD Home Equity FlexLine and want to purchase optional life insurance for , you can consider TD Line of Credit Protection.

Like Mortgage Life Insurance, if you pass away or suffer a cover accidental dismemberment, TD Line of Credit Life Protection can pay up to $1 million towards:

• Your line of credit balance (less any arrears)
• Discharge fees
• Prepayment charges
• Any interest owing

You can also add Line of Credit Critical Illness Insurance, which can help if you suffer a covered illness or diagnosis.

What's the difference between mortgage protection insurance and CMHC mortgage loan default insurance?

Mortgage protection insurance products are completely optional, no matter the size of your down payment.

CMHC mortgage loan default insurance is required in Canada when you have a down payment of less than 20% of the purchase price of your home.

If you put less than 20% down, you will need to obtain what's known as a high-ratio mortgage. These types of mortgages require CMHC mortgage loan default insurance.

To pay for CMHC mortgage loan default insurance, you can either:

• Add the cost to your principal and pay it off over time with your regular mortgage payments
• Pay your premium (or the cost of the insurance) upfront

If you're currently saving for your first home with a mortgage, here's a quick reminder of the down payments needed in Canada

Where does home insurance fit in?

Home insurance is coverage you can buy to help protect your property and belongings from covered events, such as a fire, theft, or wind damage.

Home insurance isn't legally mandated in Canada. But if you're applying for a mortgage, your lender will likely make it a requirement for you to secure and maintain your loan.

Types of insurance you might encounter when buying a home:

Buying your first home, renewing your TD mortgage, or opening a TD Home Equity FlexLine can feel like… a lot, especially with all the decisions you have to make before you close.

But understanding the types of insurance you may encounter might help lessen the mental load.

With the right information, you can ask confident questions and make choices that feel right for you.

Speak to a TD Mortgage Specialist over the phone or make an appointment to visit your nearest branch for some face time. For complete terms and conditions, including eligibility requirements, benefits, features, limitations, and exclusions, refer to the respective Certificate of Insurance below.

TD Mortgage Protection

TD Line of Credit Protection for TD Home Equity FlexLines

Accidental dismemberment coverage is provided by TD Life Insurance Company (“TD Life”). All other coverages are provided by The Canada Life Assurance Company (“Canada Life”). TD Life is the authorized administrator for this insurance. All customer enquiries should be directed to 1-888-983-7070. TD Life is located at P.O. Box 1, TD Centre, Toronto, ON M5K 1A2. Canada Life is located at 330 University Avenue, Toronto ON M5G 1R8, toll-free number: 1-800-380-4572. For more details on insurers and/or administrator, as well as all benefits and restrictions, please refer to the Certificate of Insurance or for Quebec residents, the Product Summary, Fact Sheet, and Certificate of Insurance.