December 19 2022
On August 4th, 2021, a Toronto-based startup Homewise that helps homebuyers secure their best mortgage from 30+ lenders through its online platform, has partnered with Finaeo, Canada’s largest life insurance marketplace.
Jesse Abrams, CEO/Co-Founder at Homewise, believes that integrating more products and services along the customer's journey will enable a better experience and drive more value to consumers.
“Our vision at Homewise has always been to create a fully integrated experience for clients along their homebuying journey. Buying a home is one of the most critical decisions you will ever make and we want to help you through the whole process, including areas such as insurance, closing, and fulfillment to reduce friction, save time, and, ultimately, a lot of money.”
One key step in the buying journey is to complete a series of administrative functions around the mortgage fulfillment process, one of which is the decision on how to “protect your newly acquired debt. Lenders require borrowers to either obtain credit protection or sufficient life insurance to cover the debt as a condition of fulfillment.
In general, having life insurance instead of credit protection is a much sounder decision for the consumer since the insurance coverage goes well beyond simply covering the debt you’ve absorbed and can be used by your surviving family through the assigning of a beneficiary. In addition, credit protection is generally 30-40% but can be up to 70%, more expensive than traditional term insurance, resulting in unnecessary expenses for households.
“It’s expensive enough to buy a home, the last thing we want for Canadian families to spend more than they need, especially if we can help set them up for future success,” - says Abrams.
The partnership with Finaeo will allow consumers to receive individual and personalized advice through a hybrid approach. The experience blends digital onboarding and conversations with licensed insurance specialists to answer questions and complete the application together. Consumers will have access to products from 17 insurance companies, including all leading insurers such as Manulife, Canada Life, Sun Life, Empire Life, and more to find the best product to meet their individual needs.
“We’re excited to be partnering with Homewise on their journey to deliver an unmatched customer experience for Canadians. Ultimately, we just want to help ensure that families are getting the best advice possible and are excited to play the role of a bridge between the process,” - says Aly Dhalla, CEO/Co-Founder at Finaeo.
For Homewise, this is another major step in their journey towards delivering an end-to-end experience that is automated and simple, but ensuring that the needs of consumers are put first and foremost.
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