Windsor Real Estate Blog

You have bought a house, bank financed, they immediately ask you if you want “mortgage insurance”. Reluctant to leave an unpaid debt when you die, you say yes. Within minutes, your application is approved and the cost is added to your mortgage payments. This product is sold by bank personnel who have limited training, and who would be unlikely to identify possible underwriting concerns. If you say no they make you sign a waiver form agreeing not to hold the lender responsible if something happens to you. For lenders, life insurance is an easy sell. They suggest it at a time when you most vulnerable and when you cannot do any comparison shopping. Most people don’t realize that the life insurance issued by mortgage lenders is different than life insurance purchased and from life insurance agents and brokers.

What is mortgage life insurance?
Mortgage life insurance, also known as mortgage insurance or creditor insurance, is offered by most banks and lending institutions. It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage dies. The original application will be underwritten and reviewed to prove the applicant qualifies for insurance when a claim is made.

What is Broker/Agent issued life insurance?
Real Life insurance policies are issued by broker/agents. They have a level death benefit and level premiums for a pre-determined period of time. All of these policies are underwritten at the time of application and hard copies of polices are issued directly to the insured from the insurance companies. Most term life insurance policies provide an opportunity to convert to a permanent plan without providing medical evidence of insurability.

How much life insurance does a person actually need?
Life insurance should be purchased to replace the financial value of the person who died. It should be related to income and not just debt. There is no correct answer. Everyone has their own assessment of needs and objectives.

I Would like to highlight six key areas which I feel make life insurance sold by agents far superior to mortgage insurance offered by traditional financial institutions.

1.Underwriting – Insurance applications issued through life insurance agents are reviewed (or underwritten) at inception. Conversely mortgage insurance is only reviewed at the time of a potential claim (post claim underwriting of medical evidence).
2.Rate classes – Mortgage insurance is a one size-fits all product based on age alone. For example smokers and non smokers are lumped into one single category. Typically individual term life insurance policy premiums will be cheaper for a majority of people compared to mortgage insurance.
3.Level premiums and level death benefits- Both forms of insurance have level costs for a predetermined period of time. Individual life insurance policies have level death benefits for the term of the policy whereas mortgage insurance benefits decease over time as your mortgage balance decreases.
4.Portability – Individual life insurance polices are issued directly to the applicant from the insurance company. Mortgage insurance is offered through the financial institution providing the mortgage. Clients may have to reapply and qualify medically when they decide to change financial institutions at renewal.
5.Expiry – Mortgage insurance polices end when your mortgage is fully discharged. Term life insurance can be converted to a permanent plan without providing additional proof of insurability.
6.Beneficiaries – With an individual insurance policy you name the beneficiary. The financial institution is automatically the beneficiary with mortgage insurance. Individual life insurance policies provide flexibility as your loved ones can decide what to do with the proceeds of a life insurance policy.

These topics are reiterated in a professional video from CBC marketplace. Marketplace aired a piece on the difference between fully underwritten life insurance and mortgage insurance which highlights the six points above.

You can see the article and video at:
www.cbc.ca/marketplace/2008/02/06/in_denial/

My company makes the insurance experience easy and convenient for customers. Canadian Term Insurance (CTI) has created an online web portal which provides resources for individuals to:

1.Complete a needs analysis which assists them in determining their specific insurance needs.
2.Explore product offerings and research terms with an extensive insurance glossary.
3.Download a copy of a fact finder which will guides people through a process of data gathering and assists them in organizing information.
4.Review the 13 insurance companies that we represent ensuring an unbiased opinion by CTI.
5.Most importantly they can run an online quote which analyses 35+ insurance companies in Canada based upon particular client parameters entered and returns the results in a report based upon price.

Canadian Term Insurance can be found at: www.canadianterm.com

Article courtesy of Jeffrey B. Comiskey, MBA

#128 – 4500 Blakie Road
London, ON N6L 1G5
Tel: 519-473-4549
Fax: 519-652-1627
Toll Free: 1-866-943-4549
Email: jeffcomiskey@canadianterm.com
www.canadianterm.com

When an individual decides to sell a property, the key to getting fair market value for that property is exposure. When individuals try to “go it alone”, they may restrict the potential market to a very select group of people (friends, neighbors and direct contacts); to only those who may see their sign; those who see an ad, depending on where and how often it’s advertised, to those people who happen to see it on the Internet – if in fact it’s put on an Internet site and so long as the public knows about the site.

However, if that same individual lists with a REALTOR® on MLS®, he or she is pledge maximum exposure of the property because of the Multiple Listing Service® itself. It’s posted on Canada’s premier real estate web site at www.realtor.ca which is a number one starting point for many Canadians in their search for a new home. Access is anytime of day, seven days a week, world wide!

During the first half of 2009, according to Comscore, an independent internet auditing company, there has been an average of 2.66 million unique visitors for January of 2009 and 2.71 million for February 2009. The average pages per visitor for January and February was 55.

REALTOR.CA features easy ways to look for properties, including interactive mapping by Microsoft Virtual Earth to help customize your search areas. Just select the neighbourhood or region you want, and you’ll see all the MLS® properties available there. When you sell or list a property on www.windsorrealestate.com your property is getting maximum marketing exposure to over 94,000 REALTORS® across Canada. In spite of the many do-it-yourself marketing programs available to today’s savvy consumer, the best chance to sell, the best chance to buy and the best chance to find and research an a property, is still the Multiple Listing Service® (MLS®).

For more information or to find out how to put the power of the Multiple Listing Service® (MLS®) to work for you please contact me at (519) 817-5588 or e-mail to chris@prudentialselect.ca

Article coutresy of The Windsor-Essex County Real Estate Board, a proud member of The Canadian Real Estate Association (CREA).

There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following five tips to place your home on the fast track to sale:

Price It Right

The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects.  In many ways price has surpassed location as the primary consideration in a home purchase and as such this bodes very well for Windsor and Essex County as one of the most affordable places to live in all of Canada.

 Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. From your analysis, you may want to price your home conservatively to give it a competitive edge.

 Make Your Home Irresistible

Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.

 Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.

 Create Traffic

If you want buyers to see your home, you must first find the buyers. Work with your real estate professional to design a marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, direct mail, open houses and so on.

 Go with a Professional

Selling a home is more than just putting a sign in your yard and having a listing on the Internet. And in a competitive market, you don’t really want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer worthy advice on pricing and staging your home based on their vast experience.

 Plus, there’s the added value of the peer-to-peer networking among real estate professionals, which can bring buyers and sellers together – sometimes even before the property goes on the market.   

Offer Incentives

Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs.

Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.

For more helpful tips and hints visit windsor real estate