Mortgage

A mortgage is a method of using property (real or personal) as security for the payment of a debt. You should be careful when shopping for the best rate for a mortgage. If you have too many inquiries about your credit score then it will actually reduce your score. One method to eliminate this problem is to talk to a mortgage broker.

A mortgagor is one who owes money.

A mortgagee is the one who loans the money.

Many insurance companies will decline a risk if there is more then two mortgages. There are some companies that will write the policy with three mortgages - check with your agent or broker for what is available to you.

You will be required to provide the specific mortgage information when you apply for insurance. Your lawyer will usually be able to give this specific information to your agent or broker so that a binder is provided. With this confirmation of insurance then your title can be registered with land titles.

The mortgage company is considered to be an additional insured. If you had a claim where the home is destroyed then a cheque would be written in the name of the property holder and the mortgage company. If you do something that invalidates your claim then it does not necessarily stop payment from being made to the mortgage holder.