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Do I need mortgage insurance???

schmidt — Fri, 23 Oct 2009 00:20:30 +0000

Mortgage insurance protects both you and the lender in the event you can’t make the mortgage payments. Lenders are aware that lives can change significantly over the typical 25-year mortgage term. Ours lives are unpredictable. Sometimes we are thrown curve ball, like an illness or injury that you may not recover from or are unable to return to work. The right insurance or combination of insurance offers you peace of mind that your expenses, like a mortgage, are covered if you experience such a challenge.

This differs from the insurance a lender typically requires you to purchase, if you down payment is less than 20% of the properties purchase price. Most commonly this is purchased through Canadian Mortgage and Home Company (CMHC). The purpose of this insurance is to protect the lender (not you!) if you are unable to make your mortgage payments.

When you’re buying insurance for your mortgage consider the following choices, and keep in mind you may need more than one policy to meet your needs:
1.     Lender provided Life Insurance through (CMHC) which has the lender as the beneficiary;
2.     Personal Disability Insurance which is a form of income replacement for the wage earners; or
3.     Personal Life Insurance on the wage earners, which names their spouse and/or family as the beneficiary.

Each of these options provides lender mortgage protection in its own way. Personal insurance options are customized to suite your particular needs. If you already have insurance and you are unsure that you have enough to cover your mortgage, a qualified life insurance professional can help. They are trained to review what you have and advise you as to if you need more coverage and suggest the best option for you and your circumstances. The choice of whom you consult with and what product you choose is completely up to you. It’s always wise to shop around and get good value for your money.

Submitted by Warren Turner B.Sc., B.Ed. TurnerKEY FINANCIAL Services Phone: 780.885.4572

Important Information for Edmonton Renters and Landlords

schmidt — Thu, 12 Mar 2009 13:00:50 +0000

Condsidering becoming a landlord? Wondering what your rights are as a tenant? The Residential Tenancies Act is a resource you can’t do without. Everything from giving Notice to Vacate, to Security Deposits and resolving Disputes – it’s all here and it’s the law. Visit the Queen’s Printer online to read this document.

If you are a property owner you’ll be interested to learn that the City of Edmonton is relaxing their suite regulations. Read this previous post for more info.

City of Edmonton Allows More Secondary Suites

schmidt — Tue, 24 Feb 2009 04:58:11 +0000

We are frequently asked what is permitted in terms of suites in Edmonton. While many suites in the city are not “city approved”, some have existed for years, especially near the university, community colleges and NAIT. Thanks to a new initiative from the City of Edmonton, property owners can apply for funds to upgrade illegal suites to meet current building and fire code. Homeowners wishing to add a suite to an existing home or to create a suite in a home under construction can also apply for funding. The Secondary Suites Grant Program is intended to improve the availability of affordable housing in Edmonton. The result will be a significant increase in the number of homes where secondary suites, including garage suites, would be allowed. Details are available in a helpful brochure put out by the city. For more information on secondary suites in Edmonton, visit the city’s website on secondary suites.

Contributed by Broker Owner of Schmidt Realty Group, Kathy Schmidt