Mortgage insurance explained: what is required and what is optional
Property insurance, bridging insurance, low-contribution insurance, life insurance – which ones you must have and which ones you can refuse.
Kready · 2026-08-30
Insurance is a frequent source of confusion. Here's what each type means.
Property insurance – required
The flat must be insured against fire and other random events, and the policy is assigned to the bank. You can usually buy it from any insurer, not only through the bank.
Bridging insurance / higher margin until entry – temporary
Until the mortgage is entered into the land and mortgage register (this can take several weeks or months), banks often charge a higher margin or a bridging insurance fee. It ends automatically after the entry.
Low-contribution insurance – when below 20%
If your own contribution is below 20%, banks either add a margin or require insurance of the missing part. It ends once the loan falls below 80% of the property value.
Life insurance – often optional
Many banks offer lower margins if you buy life insurance through them. Compare the total cost: a lower margin with expensive insurance can be worse than a slightly higher margin without it.
How to compare
Look at the APR (RRSO) and the total cost of the loan, not just the interest rate. The calculator shows both for each offer.