Credit protection insurance for mortgages will no longer be available in Yukon, according to a CBC News report.
Yukon’s government exercises responsibility for licensing insurance agents and brokers in the territory. However, the government discovered that it lacked regulations to license credit insurance products – an oversight that affects mortgage and credit card insurance sales.
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"We noticed that this class of insurance was not reflected in our regulations, which outline the types of insurance that we're allowed to licence for in Yukon," Nancy Meagher, Yukon's director of professional licensing and regulatory affairs, told CBC News. "Because of that we did not issue a licence for insurance companies to sell credit protection for this year."
While the territory’s government is working to resolve the issue, Meagher told CBC News that homebuyers should explore alternative insurance options with their brokers.
"There are other kinds of insurance that are available in the territory that may meet Yukoners' needs," said Meagher. "I would recommend people talk to a licensed insurance broker agent or salesperson in Yukon about their options."
Susan Zanders, senior mortgage broker at Verico Zanders and Associates Mortgage Brokers, told CBC News that she doesn't like to see anyone buy a home without mortgage insurance in place.
"For a family that's got a mortgage payment of $3,000 a month and somebody off on disability — that's a big payment to have to cover with one person the only one contributing to it," Zanders said. "The mortgage is one of the biggest credit expenses in a person's life. That's the biggest debt they're going to incur. It's where you live and where you call home. So, it's something you need to protect."