Mortgage repayment insurance can literally put a roof over your head in some situations. You will appreciate it when, for example, due to a long-term illness or loss of employment, you are unable to repay the loan, for a given period of time the insurance company will cover it for you.
Banks offer repayment insurance together with a home loan
Repayment capacity insurance is one type of mortgage insurance. Banks usually offer it along with the home loan and if you take it out, they will usually offer you a lower interest rate.

In which situation would you appreciate insurance?
- If you are unable to work for an extended period of time, the insurance company will make the payments for you for a certain period of time.
- The same may be true if you lose your job.
- If you become disabled as a result of illness or injury.
- In the event of death, the insurance company will pay the remainder of the mortgage for you.
What are the (dis)advantages of default insurance
- You can also take out insurance in case you lose your job
- You can get a lower interest rate on your loan, even by a few tenths of a percentage point.
- Arranging insurance is not difficult.
- The cost of insurance depends on the amount of the loan and the risks insured.
- The insurance lasts for the duration of the loan.
- No tax deduction can be claimed.