Mortgage indemnity
Do you know which part of your mortgage protection serves which purpose?
Understand the protection.
Get the timing right.
Life insurance, home insurance and mortgage indemnity address different questions within a property purchase. If a lender requires mortgage indemnity, ask who it protects, what it costs and how it differs from cover for your family or the building. We can help you make sense of the pieces.
A question for your situation
Could you explain what each insurance requirement is there to do?
Protection for the lender
Mortgage indemnity insurance protects the lender against the insured portion of its loss if you default on your mortgage. It can support lending above the amount the lender would normally advance against the property, which may reduce the deposit you need. It does not replace your responsibility to repay the mortgage.
How the insured portion works
For illustration, if a lender normally finances 75% of a property’s accepted value but agrees to lend 100%, the additional 25% shows the portion that may require mortgage indemnity. These are example figures, not a universal Central Bank lending limit or a promise of 100% financing. Your lender and Sagicor General confirm the insured amount and policy terms.
Building? Start cover when the mortgage begins
For a construction project, Sagicor General’s mortgage indemnity cover is arranged to begin after construction is complete and the bridging-finance phase converts to the mortgage. BIAI will coordinate the start date with your lender, including confirmation of the Certificate of Compliance and other conversion requirements. A Building Start certificate serves a different purpose at the construction stage.
Buying a completed home? Cover can begin in line with the confirmed mortgage commencement date. You can discuss a quotation beforehand; obtaining a quote does not start the policy.
Why the start date matters
The Sagicor General mortgage indemnity policy described here has a 10-year term. Starting it six months before the mortgage would use up six months of that term before the mortgage begins, leaving only nine years and six months alongside the mortgage. BIAI checks the dates so cover is aligned from the start; claims remain subject to the policy’s conditions and expiry date.
One payment, paid in full
The premium is a one-time payment. It must be paid in full and cannot be paid in instalments. BIAI will confirm the amount and payment timing with you before cover begins.
Buying now or nearing the end of construction? Tell us your lender’s expected mortgage start date so we can help you plan the right next step.
Ask BIAI about your mortgage indemnity →The right approach depends on your circumstances, existing arrangements and the provider’s current terms. We’ll help you understand the details in a consultation.
You have saved a deposit. What comes next?
The asking price and mortgage payment do not describe the whole move.