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Flow Insurance

Flow insurance is another name for mortgage default insurance. It’s a type of insurance that protects lenders and investors from borrowers who default.

The cost of flow insurance is typically paid for by the borrower.

Flow insurance differs from bulk (or portfolio) insurance, which is typically paid for by the lender and which applies only to low-ratio mortgages.

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Last modified: November 30, 2012

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.

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