If your lender tries to sell you (optional!) life insurance with the mortgage think it through and don’t let the lenders pretty talk convince you. Even in the hardest of times, such as we have these days, do not always justify buying a life insurance from your mortgage broker. And there are some simple reasons for that. First of all, in most cases the insurance your lender will try to sell you will be a lot more expensive that the regular, old-fashioned term life insurance. Also, any other mortgage protection should be looked upon with caution as it may turn out that it will be cheaper just to save money and attempt to pay your mortgage back faster.
Although you will most probably be asked to buy a homeowners insurance, or mortgage insurance (even though you may already have life insurance) remember that you are free to choose how much insurance you need and feel free to shop around and find the best rates for you. Again, this way you may save a few hundreds.