Wednesday, June 30, 2010

Professional Spotlight: Jane Hauck, Sun Life Financial

I’ve known Jane for about a year now. She works for Sun Life and provides a wide range of financial products and services including insurance (life, disability, critical illness etc) and investment products. She is very dedicated and knowledgeable and I try to refer my clients her way if they have investment or insurance needs.
With Jane’s permission, I’m reprinting a brochure she’s given me regarding life insurance for your mortgage. In the article she compares regular creditor life insurance (usually offered by your mortgage lender) versus individual, separate life insurance purchased through an institution such as Sun Life. There are some really good points here and valid food-for-thought.
If you have any questions for Jane, please contact her directly. She’d be very happy to answer your questions and complete a free review of your current insurance products!

Insuring your biggest investment- your home
Your home in probably the biggest investment you’ll ever make. When arranging your mortgage, your mortgage company may offer you mortgage insurance. Have you considered the advantages of personal life insurance to cover your mortgage? Consider the differences:
Mortgage Insurance:
-most companies offer decreasing term insurance. Even though the death benefit if decreasing, the cost remains level. The coverage expires without allowing you the opportunity to purchase other insurance or provide you with cash values.
-The proceeds are payable to the mortgage company. In the event of dearth, the mortgage is automatically repaid.
-In most cases, if you take your mortgage to another company, you lose your protection. To obtain mortgage insurance with the new company you must submit new satisfactory evidence of health and are subject to the current rate charged by the new company.
-The face amount can only be the exact amount of your mortgage (no more, no less).
-You may not be able to insure both you and your spouse if the mortgage is registered in only one spouse’s name.
Individual Life Insurance:
-You can choose term coverage and match the term length to your amortization period. A term policy may be converted, regardless of health, until age 65.
-Or you can choose permanent coverage immediately. At some point in the future, the cash value of a permanent policy may be sufficient to pay off the balance of the mortgage.
-You appoint a beneficiary who can use the proceeds in whatever manner he/she wishes (ie. To invest rather than pay off a low interest mortgage.
-Your policy is portable. If you transfer your mortgage to another company, your insurance remains in force. You don’t need to re-apply and prove your insurability. You’re protected from the danger of losing your insurance because of a change in your health.
-You may select an insurance amount sufficient to cover your mortgage and other outstanding debts and term length to match your amortization.
-You can insure both you and your spouse even if the mortgage is registered in one spouse’s name.
©Sun Life Assurance Company of Canada, 2007.

Jane Hauck, Advisor, Sun Life Canada
Phone: 780-443-1919
Fax: 780-481—0356
Cell: 780-991-4954

Tuesday, June 29, 2010

You can now find me on facebook!

Natalie Wellings, Mortgage Associate | Promote your Page too

The Benefits of Portability

Many mortgage holders forego certain mortgage features in favour of a lower interest rate. If this is your strategy, and if you’re planning on moving before your mortgage term is up, you may want to make sure portability isn’t one of the features you’re giving up.

A portable mortgage is one that allows you to transfer your existing mortgage with all its terms and conditions to a new property. So if interest rates are going up, you can keep your existing rate on your new home. If the new property costs more than the first, the extra value would be mortgaged at the current rate. Instead of paying two mortgages at two different rates, the lender would likely just blend, or average, the two rates.

Without mortgage portability, you would have to pay a fee to get out of your current mortgage and then sign a new one at the current (and likely higher) rate. So, while a lower rate may be appealing right now, it may be worth it to pay a few tenths of a percentage more for the added flexibility associated with portability.

-courtesy of Axiom Mortgage Partners

Wednesday, June 23, 2010

Think your place is too small?

Are you considering a move because you feel that you have outgrown your space?
Check out this video! You'll be absolutely amazed at one man's incredible ability to make the best use of a small space. I've never seen anything like it! It really does make me realize how much space Canadians have and that our idea of a home being “too small” really is just a matter of perspective.


Monday, June 21, 2010

If Canada's five chartered banks were the only institutions allowed to lend money in the form of mortgages in this country, rates would be sky-high, and the selection of mortgage products would be rather slim. Thankfully, we have non-bank lenders to keep the Big Banks on their toes.

While these lenders may not invest the same number of dollars in fancy advertising campaigns, they're nevertheless an excellent option for savvy consumers who are looking for a good mortgage deal.

Because non-bank lenders don't have to support the overhead costs of brick-and-mortar branches, and instead opt to go through the mortgage broker channel, they're able to offer better rates. In addition, because they're seeking to steal market share from the dominating big banks, they're much more likely to offer unique mortgage features - such as better prepayment options, flexible payment frequencies, and unique products such as cash-back mortgages - while at the same time offering a little more flexibility when it comes to clients with lower credit scores, or those that are self-employed or commission-based.

While non-bank lenders aren't considered "banks" in the traditional sense, they're still required to follow all the same regulations and underwriting guidelines as their bank counterparts. They also have access to the same default insurance options as the big banks - whether that's through CMHC, Genworth, or United Guaranty.

Not all non-bank lenders are "sub-prime" (in fact, there are very few of these lenders left in Canada), and while it's true that many of them are foreign-owned, there are many homegrown institutions here as well. Their models have seen success across the globe, and continue to thrive here in Canada.

If you're in the market for a new mortgage or a renewal, I invite you to head into your local bank branch to see what type of deal it can offer you. Then pop by my office and I'll scour the rest of the country's lenders - and likely save you a few percentage points off your mortgage.

Tuesday, June 1, 2010

Bank of Canada rate increase

The Bank of Canada increased its prime lending rate earlier today. This is the first time they have done so in over 2 years. The bank’s Governor, Mark Carney, announced earlier today that the prime lending rate would be increased by 0.25%. This announcement marks the first interest rate increase by any of the G8 countries. The prime lending rate affects those with variable rate mortgages and lines of credit.
The bank's next interest rate announcement is expected on July 20 where many experts predict a further rate increase of 0.25%. However, the Bank of Canada announced that this may not be the case. Much of the decision to raise interest rates is based on the health of the domestic economy as well as global factors such as the financial crisis in Europe.
Please feel free to contact me should you have any questions, concerns or require a pre-approval or mortgage assistance!

Please click HERE to read CBC's story on the interest rate hike.