Canadian Mortgage News

Shopping for Your Insurance Policies Online

Posted on May 2, 2012 by Mortgages Canada

You can find just about anything you need on the Internet. And your insurance policy is no different. But knowing where to search and what to look for is something you need to keep in mind.

Know what you are looking for

First things first, you need to know exactly what cover you need. Make a list of everything you need to inquire about, and if possible, any specific things you want in an insurance policy. If you aren’t sure what you should be looking for, ask family members and friends and do some research online. Once you start reading through different policies, you’ll soon form an opinion as to the type of insurance you think best suits you.

Here’s an example; if you have an old used car, you probably don’t want to purchase the maximum cover possible.

Check out comparison websites

Comparison websites are a great place to start when searching for your insurance policies online. They help you compare the offerings of different insurance providers covering everything from home and contents insurance to health insurance. It’s a helpful, quick way to compare the offerings and prices of different companies.

Always keep the variables the same

It’s really important that when you are looking for insurance of any kind, you keep the variables the same. For example, you may get a quote that’s cheaper than the first but that’s only because the coverage is slightly different. Make sure you are always inputting the same data to get a genuine quote and read the policies carefully to really compare if one is cheaper than the other.

Look for a one stop shop

It’s so much easier and simpler if you can combine all of your insurance policies with the one provider. It means that everything is in the one place, and you can inquire about all of your insurance needs at the one time. This will also make it easier when you need to make changes for any reason.

Don’t rush it

Many people don’t bother to read through their policy in detail because, let’s face it; it’s not the most fascinating thing to read. But it really is a must. If you have any questions, make an inquiry. Because you are looking for the right insurance online, you have the luxury of taking your time in a no pressure environment to ensure the policy you are looking at is right for you.

Buying your insurance online is easy and can even save you money. Just make sure that you carefully read the policy before signing up for anything, it always pays to be cautious.

Finding the right home insurance and car insurance isn’t something that should be rushed, but the good news is you can organise everything from the comfort of your own home without the need to spend time on the phone or in queues having to fill out loads of paperwork!

Buying a Foreclosed Home? Things to Know

Posted on May 1, 2012 by Mortgages Canada

Simply put, foreclosure occurs when a debtor is unable to make payments to the lender and so in an attempt to recover the remaining loans the borrower has to sell the asset as collateral for the loan. Buying a foreclosed home is similar to buying a regular resale however few complications may vary. Some people are often skeptical when it comes to buying a foreclosed home, however there is often little to fear. Most experts have deemed it safe to buy a foreclosed home if it has title insurance on it.

Banks who own these foreclosed homes are often desperate to sell of these homes as soon as possible and therefore will accept much lower than the market rate. What you need to know is how to locate a foreclosed home. The most useful tool in locating a foreclosed home is definitely the internet. Websites such as Redfin.com help you find foreclosed homes in your vicinity. Once you know about the foreclosed homes in your locality then you can start looking at prospective homes.

Buying a foreclosed home directly from the bank or at an auction are bad ideas. A far greater idea is to buy through a broker as most banks acquire the services of brokers to sell their homes. Look for an agent who specializes in foreclosed homes so you can rely on his or her services.

Be careful about how much repairs the house will need. Bank owned houses are often the subject of neglect when it comes to care taking and therefore may need extensive repairs which will add to the overall cost of the house. Carry out a thorough inspection of the house to see if it is in livable conditions or if repairs are needed how much will they cost. Only then should you make the decision on whether or not to buy the house. If a house is priced at a price much lower than the market price then it might need a lot of repairs, so do not let low costs convince you to make a decision in haste. How long a house has been empty for is also a factor that may signify the extent of the repairs that the house may need. Houses that have been empty for more than three months often need more repairs than houses that have just been vacated.

As with other homes, do not buy the house without taking a look at the neighborhood and vicinity of the home. Look for the crime rate in the area to see if you are buying into a promising neighborhood or not. If an area has low house prices due to foreclosures all over the locality, then you may have difficulty in redeeming the cost of your house later on. Keep all these factors in consideration and carry out a thorough check of the area that the house is in.

When you have gone over all these details including the price, locality, repairs, etc only then should you arrive on a decision as to whether or not you should buy a particular foreclosed home. Do not make a hasty decision that you will regret later on. Make sure you visit the house and the neighborhood and can trust the agent through whom you are making the purchase. Before you buy a home, be sure to know take a look at the overlooked home ownership costs to make sure you can continue to afford it later on. Once you do the research you are all set to buy a foreclosed home by using all the information that you have.

Posted in Articles | Tagged bank owned houses, buying a foreclosed home, debtor, foreclosed homes, Income Properties, mortgage, Posts, title insurance | Comments Off

What is a Reverse Mortgage?

Posted on May 1, 2012 by Mortgages Canada

You have worked all your life to pay for your house, raise a family, send the kids to college and retire comfortably. In an ideal world, you would be set until you leave this one. You own your house outright. You are living off of your RRSP, savings, pension, and investments. You don’t owe the bank anymore.

So, naturally, the bank finds a way to get back into your back pocket: Reverse Mortgages.

Reverse mortgages at a first-glance are very appealing. They have been on an upward trend in recent years, leading many more to consider it as an option later in their retirement years. While a good option for some, it really should be viewed as a last resort for most seniors. A reverse mortgage is basically a loan against your home equity, and it is primarily used by seniors and retirees who have paid off their home in full. The ‘loan’ is then paid back in full, plus interest, when the house is sold, or when the owner dies (in which case the bank sells the house for you). The difference between a normal mortgage and a reverse mortgage is that there are no monthly payments on a reverse mortgage. You receive a lump sum of money, up to 40% of your home’s value, and then the bank just adds interest each month until it comes time to pay.

For the banks it is a win-win. There is no chance you will default on the loan, as you already own your own home. The longer you stay in the house, the more you owe them. In essence, (although not legally) you are in fact giving your house back to the bank, and living off the cash you already used to pay for it the last 20 years.

A few positive things reverse mortgages might be used for are home renovations, investment opportunities, medical bills, or paying back other high interest debt. If the income or advantages gained from a reverse mortgage outweigh the value you will be losing in your home, it may be worth looking into.

For those taking out a reverse mortgage to go on vacations, buy a fancy car, a boat, or squander your money away, it would not be a wise decision. Of course, it is completely within your right to do that; they are your golden years after all, and you deserve to enjoy them. If you are set on doing that, you would be better off looking into Home Equity Line of Credit, or just selling your house outright, downsizing to a condo or a less expensive home, and taking the extra cash to do what you wish. Remember your kids and grandkids as well, as it’s nice to pass on your success to your descendants.

Another thing not often mentioned is that you never know how old you may be when you pass away. If you retire at 65, take out a reverse mortgage at 75, and stay healthy until you are 90, you will have likely lost the majority of the value of your home back to the bank in compounding interest the last 15 years. At that point, you would probably be near the end of your savings, your home equity would be dwindling, and you may continue to live up to 95 or even 100.

Always remember to plan for the long term, even in the latest years of your life. It is better to have too much, than to find yourself just scraping by the last few years of your life. A reverse mortgage should really be a short term solution. Keep your reverse mortgage a maximum of five years. Don’t forget, there are always hidden costs as well, such as bank fees, lawyer fees, and taxes.

Staz Johnson has been passionately blogging about personal finance, affording the right amount of mortgage, debt repayment and financial management. Check out her website or become a Facebook fan!

Posted in Articles | Tagged debt, equity, fancy car, first glance, home, house, Loan, mortgage, Posts, reverse mortgages, rrsp savings, what is a reverse mortgage | Comments Off

Transport and Logistics ? Connecting Canada to the Global Economy

Posted on April 30, 2012 by Bank of Canada - News

Deputy Governor Tim Lane discusses the global economic outlook and the integral ? and historic ? role of transport and logistics in building Canada’s prosperity.