✅Is it mandatory to buy insurance for a home loan? It is not mandatory to buy insurance for home loans. However, some lenders might insist you to buy one, to ensure repayment of home loans. Opting for home loan insurance is an individual choice, but is beneficial for both lenders and borrowers.
Similarly one may ask, can I cancel my mortgage insurance?
The short, quick answer is: Yes. Because you signed a contract—that bulk of mortgage documents you signed—you are now bound by the terms of the contract. As part of this contract, your lender requires you, your daughter and your wife to hold life insurance.
In this regard, do you legally need mortgage insurance?
If you buy a house with less than a 20% down payment, the lending institution requires you to get mortgage loan insurance to protect against the risk of default.
Is insurance compulsory for HDFC home loan?
Although it is essential to buy an insurance cover while taking a loan you are under no obligation to do so, not from any bank nor non-banking finance company. “It is not mandatory to purchase home loan protection plans.