Is your mortgage boosting your financial plan?

For many Canadians, their mortgage is often their largest debt and one of their greatest monthly expenses. Yet less than half seek the necessary advice to understand how it impacts their overall financial plan, according to a recent study conducted by IG Wealth Management, in partnership with Pollara Strategic Insights.

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Alana Riley, Head of Mortgage, Insurance and Banking at IG, says, “Too many Canadians are taking on this multi-hundred-thousand-dollar debt without discussing its impact on their overall financial plan with an advisor. A financial plan that integrates a mortgage can improve cash flow, help expedite paying off the loan and ultimately put you in a better position to reach your financial goals.”

Buying a home or renewing an existing mortgage comes with an extensive mortgage checklist for most owners. Should you select a fixed or variable rate? How long should the amortization be? How can you get the best interest rate?

While these questions are certainly important to ask, of equal significance is protecting your home in the case of illness or any unforeseen circumstances that may lead to defaulting on your mortgage payments.

“Protecting your mortgage should be part of your integrated plan and ought to be done hand-in-hand with a financial advisor,” says Alana.

Alana points specifically to the results of the study; more than three-quarters of Canadians believe home ownership is the most important part of their financial plan. However, only 44% sought guidance from a financial advisor before getting a mortgage, and just two-fifths have critical illness or disability insurance to protect their mortgage.

Unfortunately, Canadians don’t always receive robust advice about how they can protect themselves and their family’s future, and mortgage insurance is often neglected entirely.

“Think of mortgage insurance as a safety net for you and your family,” suggests Alana. “There are different types of creditor insurance options that provide a quick and easy way to make sure you have your mortgage covered for a period of time, when you’re not earning income due to illness or injury.”

She notes that this includes term insurance, which is cost effective. “Ultimately, whichever option you choose, the key is you must have the discussion with your financial advisor before finalizing your mortgage.”

“Since COVID-19, Canadians are placing a new emphasis on their health and well-being, as well as their finances. The pandemic really opened people’s eyes to whether they had the right protection in place in terms of critical illness, disability and life insurance. These are all crucial aspects of a financial plan that should be holistically integrated.”

The key, says Alana, is to seek out all the advice you need when planning for homeownership. “Take the time to choose an advisor that asks the right questions and will build a holistic financial plan that integrates both mortgage and insurance considerations — all under the same roof.”

Talk to your IG advisor to discuss which is the most suitable mortgage for you and how to best integrate it into your financial plan. If you don’t have an IG advisor, you can find one here.

Written and published by IG Wealth Management as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an IG Wealth Management Consultant.


Mortgages are offered by Investors Group Trust Co. Ltd., a federally regulated trust company, and brokered by nesto Inc. Licences: Mortgage Brokerage Ontario #13044, Saskatchewan #316917, New Brunswick #180045101, Nova Scotia #202507230; Mortgage Brokerage Firm Quebec #605058; British Columbia, Alberta, Manitoba, Newfoundland/Labrador, PEI, Yukon, Nunavut, Northwest Territories.


Mortgage advisors are licensed professionals and equivalent to the following titles per province: Sub Mortgage Broker/Mortgage Broker in British Columbia, Mortgage Associate/Mortgage Broker in Alberta, Associate/Mortgage Broker in Saskatchewan, Salesperson/Authorized Official in Manitoba, Mortgage Agent/Mortgage Broker in Ontario, Mortgage Broker in Quebec, Mortgage Associate/Mortgage Broker in New Brunswick, Associate Mortgage Broker/Mortgage Broker in Nova Scotia, or Mortgage Broker in Newfoundland & Labrador.

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