What Insurance Makes More Sense? Mortgage or Life?

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Many times people that are in the process of buying a home end up considering a mortgage insurance policy to protect them in case of a sudden change of circumstances leading to the inability to pay on their home. Did you know that even through closing, the mortgage is your obligation and regardless of unforeseen circumstances the note must be paid? That is why one of the things many buyers do is to secure insurance on the mortgage in the interim.

However, there is a viable alternative in the form of life or term insurance. While both seem to be yielding the same result there are some very noteworthy differences that will change how you decide to use each. Here is a look at some of those differences:

In Case of Mortgage Holder’s Death

The most important aspect of a mortgage insurance premium is that your mortgage is secured. The bank will automatically be paid in case of one or more mortgage holder’s death. With a life insurance or term policy however, the beneficiary will receive a tax-free payment in cash and is free to decide how to disburse the funds.

Policy Ownership and Control

This is a matter of controlling the policy not only from an ownership standpoint but also in terms of rate plans and effective dates. With mortgage insurance the underwriter has the right to change rates or even cancel the policy at any time. Life and term policies allow the policyholder much more autonomy.

Financial Considerations

Once again, life or term policies allow more flexibility in that the premiums are established at the start, are usually low in cost and can be adjusted to your needs. Mortgage insurance policies, while start out lower in cost, tend to add up and end up being the most expensive option.

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Though nothing surpasses the professional advice and counsel you will receive from a certified accountant or financial planner, we believe that a life or term policy is a better choice. Of course depending on timing, you may want to temporarily institute a mortgage policy while waiting for the life insurance or term policy approval so that you are protected in the interim.

As always, please feel free to call or visit us at any time for more information on this or anything else you may need. We look forward to serving your needs! 

If you have any questions about mortgage insurance or life insurance, please click on the link below and we will have a specialist contact you.
 https://bt114.infusionsoft.com/app/page/603636ab97843a7c1300d16496396ecf

Tips for Pre-Sale Preparedness

 

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If you have made the decision to sell your home and will be listing it soon you want your home to sell as quickly as possible and for the most amount of money.  By following these tips, you are sure to be successful in your home-selling endeavour and most likely with an edge over other sellers who may not have taken the time to prepare their property for sale. 

Curb Appeal
 

Curb appeal is a very important aspect of attracting serious buyers.  Beginning with what they see as they drive up, to what their experience is walking up to the front door – as a seller, your greatest opportunity to grab their interest lies in those very first moments. 

In the summer, pay attention to overgrown shrubs, trees, flowerbeds and hedges.  In the winter, make sure you have shovelled the driveway and walkways and kept clear of ice. Also make sure the storm door is in good shape and the doorbell works.

When the outside of a home looks unkempt it can give off a false impression of the rest of the home too.  You want your prospective buyers to see the home and fall in love at first sight – and that begins from the exterior.

Tip:  Make sure grass is watered, fresh and green. Clean up your lawn and driveway area.  Trim overgrown trees and vegetation, add some mulch or decorative rocks and flower pots for some color.  Decks should be stained.

Stage Your Home To Appeal To The Masses

Everyone who owns a home decorates it for their own personal preference. Staging helps you decorate your home to appeal to the greatest number of buyers.

Paint should be neutral colours. Make sure you paint your baseboards to freshen them up.

Regardless of whether you are still living in the space or the house is vacant, it’s important to have the house cleaned and devoid of all marks and blemishes. 

Windows and glass should be clean and smudge-free. Caulking around windows should be cleaned/replaced if necessary.  Walls should be without any scuffmarks, moving dents or other signs of wear and tear. 

Declutter your home. It is difficult for a buyer to picture their furniture in your home if it is cluttered. Remove personal photos, clean the counters and take everything off the fridge and other appliances. You can rent a storage locker for your excess belongings until your home is sold.
 
Tip:  Hire a cleaner to clean the house, the bathrooms, fixtures, kitchen, appliances, floors, walls and windows -- patch up dents in the wall and apply a fresh coat of paint throughout the home.

Address Aged Aspects of the Home

If you have some areas with older appliances, tiles with loose grout or any other things that need some updating, try to do so before putting up the house for sale.  Without taking on too large an expense, do make an effort to make the home presentable.

Tip:  Clean grout on older tiles, have loose tiles re-grouted, and freshen up shower stalls and bathtubs with new caulking.

The Home Should Be Warm and Inviting

Depending on where you are located, keep the temperate of the home at a comfortable level.  If it is too hot or cold, buyers will leave too quickly without getting ample time to walk through, see all the features and visualize themselves in the home.  If the home is still occupied, cook a pot of apples and cinnamon on the stove a few hours before the showing, so there is an inviting aroma throughout the house.

Tip:  In the summers, keep the air conditioning on at a comfortable 68 to 70 degrees.  In winters, leave the heating on at about 73 or 74 degrees.

 
Get a Second Opinion

Since you are used to the environment in the house, you may have turned a blind eye to some aspects of the home without even realizing it.  If you can ask your agent or someone else to walk through the home and make a note of any issues that may be visible then before the showing you can get an additional perspective on how the house presents.  Heed that person’s advice as much as possible and repair or address the issues that are brought up.

Tip:  Request a close friend, family member or your listing agent to walk through the home once you have prepared it for showing and provide a list of any issues or concerns that need addressing.

Have Professional Photos Taken

Since most buyers are looking on the internet before deciding to visit a home, having professional photos can entice more buyers into viewing your property. Make sure your agent has a professional photographer available to take photos and virtual tours before your home is listed.

Make Sure Your Home Is Accessible For Showings

The most important part of selling your home is allowing the highest number of potential buyers access to your home. If an agent or prospective buyer is from out of town and your home is not available to show, they may move on to the next house without returning to yours.

If you are listing with a real estate agent, they will no doubt ask you to leave when the house is being shown. Why? Because sellers being home make a buyer nervous – they don’t feel comfortable viewing the house when they feel like they are intruding.

If you own pets, try to remove them during showings. Nothing deters buyers like a large, barking dog. Also, many buyers are fearful of animals and may not give your home the attention it deserves if they know an animal is present.

To view and download our checklist, Click Here >>

 

Market Update - October 2012

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Have you been wondering whether our real estate market is on the cusp of a crash? Do today’s media reports have you confused about the current state of our marketplace? With our recent changes to Canadian mortgages set forth by the government this past summer, the outlook for borrowers has changed significantly with the cost of homeownership being much higher for buyers. These changes took place after the Canadian Finance Ministry reviewed high prices and the high debt-to-income ratio of citizens.

Some Areas Experiencing Decline in Home Prices 
One of the recent trends of declining sales as we approach the winter season has raised question as to whether the housing industry is set to suffer a major crash with decreasing home values. This may be true in some areas such as in the Durham Region however it does not apply in the Greater Toronto Area. The main concern has been one of slightly declining sales prices that dipped an average of about $3,000 from the month of August to September this year in the Durham Region.
 
Months of Inventory (MOI) Redirecting Market to Stable Level 
Considering the basic principle of supply and demand, keep in mind that the greater the number of properties the less likelihood for higher prices. Similarly, fewer homes on the market will generate increased buyer interest. The way we measure this phenomenon in the real estate industry is to use a measurement of Months of Inventory (MOI). Calculated using the number of active listings divided by the sales, anything under 3 months of inventory indicates a sellers’ market while anything within 3-6 months of inventory is a balanced market. An inventory level of 6 months or more is considered a buyers’ market since buyers have control in that scenario.

The chart below shows the trends we have been experiencing with four consecutive months in the middle of the year when the MOI was less than 2 months – resulting in artificially inflated prices coming from heightened interest and multiple offers. Looking at the MOI for the Durham Region in September 2012 as compared to the same time the previous year, the number has come down slightly from 2.63 to 2.57 months. However considering the transition from July through September, we are heading toward a stable market with MOI numbers hovering at 3-4 months.

For further information and detailed statistics as published by the Toronto Real Estate Board, click here to access the GTA Realtors Release report.
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As they say, real estate is local so to get an accurate picture of your own neighborhood I invite you to contact me today for more information as it relates to your marketplace. I can be reached at 905.428.8100 or via email at shawn@shawnlepp.com and look forward to hearing from you today!