Probably not! (see section on mortgage insurance). Bottom line, Mortgage Insurance is usually significantly more expensive and has far fewer features than regular term life insurance. Your mortgage provider has done you a terrible dis-service if they didn't explain this to you, and told you how to cover your mortgage with Life Insurance.
All is not lost! Although it of course depends on the situation, there are a variety of different lenders who lend to people in different situations. So just because your bank has turned you down doesn’t mean you can’t get a mortgage. As a mortgage agent, I can shop your mortgage around to a variety of lenders find the solution that is best for you.
I don’t like broker fee’s and you’re all but guaranteed that I won’t ever be charging you one! The only scenario where a broker fee might happen is if you didn’t qualify for an “A” lender, still didn’t qualify for a “B” lender, and we had to do a private mortgage. If that is the case however, it might not be in your best financial interests to be getting a mortgage and I’d talk to you about other alternatives.
No way! The banks would like you to believe that no doubt. But it’s totally false. As a mortgage agent, I have access to many “A” lenders including many of the big banks for which I can place business. Lenders including the big banks, have to offer better rates in the broker channel because of the competition (unlike if you walk into a branch yourself). So while it is true that I can help many people a bank would turn down, I can most certainly also help people the bank would approve too!