As in learning how to drive one needs to learn first how to
use the brake, in order to understand the meaning of ‘mortgage insurance’ it
should be mentioned first what it is not. It is not the insurance that a home
owner takes for the protection of house or any other damage. The Mortgage Insurance is actually NOT for
the homeowners, it IS for the lenders or the investors that provide the loan amount
beyond the 20% down payment that the buyer arranges at the time of buying the
house.
Why Mortgage Insurance?In Canada without the guaranty that it provides the buyers would always have to arrange that 20% as down payment. However, it is not the case here. Because of the assistance provided by the Canada Mortgage and Housing Corporation (CMHC) the consumers, the first-time buyers in particular, can become the owner of a house by putting a down payment of as low as 5%.
Insurance for Mortgage vs Mortgage Insurance
We have learnt about Mortgage Insurance. Now when we will
understand what Insurance for Mortgage is we will know the difference between
the two. The insurance for mortgage or mortgage life insurance is the insurance
policy that is purchased by the home owner to ensure that the mortgage payments
for the house (where his or her loved ones will continue to live) are secured in
case of death of the principal mortgage holder. 
