Mortgage Insurance: Canada Offers You an Option
The Canadian housing finance system has made it possible for you to buy a home in Canada even if you are not able to save enough for the money down. Better yet, it allows purchasers to acquire a mortgage with a 5% down payment, but will be able to get an interest rate as if you made a 20% down payment. How can this be? This is made possible by acquiring mortgage insurance for the amount borrowed on the loan. This reduces risk from the mortgage for the mortgage company and enables you to buy a home without having to front the entire down payment.
What are the Requirements?
To get mortgage insurance, there are requirements to qualify, so some purchasers will not be able to get it. To qualify, the home, of course, must be in Canada. Furthermore, at least 5% on single-family and two-unit homes and 10% on three- or four-unit homes must be paid up front. The down payment must come from your own recourses, but a contribution from an immediate relative is acceptable. Also, the total monthly housing costs that include principle, interest, property taxes, heat, the yearly site lease in case of household tenure, and 50% of applicable condominium fees should not represent more than 32% of your gross household income. An additional qualifier for mortgage insurance is your liability load should not be more than 40% of your gross household earnings. The amount of closing costs and fees can also determine if you qualify for mortgage insurance.
Will this cost much?
The broker pays the insurance premium to obtain loan insurance. Yes, the mortgage company is the one who pays the premium, but believe me; they will pass the expense on to you. So, how much is loan insurance? It depends on who you talk to. The amount of the mortgage is directly connected with the price of the insurance. The less you are lended, the less your insurance will be. This helps buyers who pay more for a down payment. Lenders even give you options on how to pay the insurance premium. The premium can be paid in a lump sum or can be added into your loan payments and be paid monthly. You are not safe just because you purchased loan insurance if your loan is defaulted. Insurance for the borrowed loan reduces risk for the lender. On the bright side, you got to buy a residence with little money down and a good interest rate. See us at www.infoprimes.com to see how you can save on mortgage insurance rates. Summary: For those who want to buy a residence but cannot afford the down payment have no need to worry. The Canadian housing finance system has come up with a way to enable people to purchase a home by introducing loan insurance.
Mortgage Insurance: Canada Offers You a Choice
The Canadian housing finance system has made it possible for you to buy a property in Canada even if you are not able to save enough for the down payment. You are able to get a loan with a 5% down payment on your residence, but will be able to get a 20% interest rate. What makes this possible? This is made possible by acquiring mortgage insurance for the amount borrowed on the loan. While you are able to get a home without paying the entire down payment, the broker is able to reduce the risk of a default loan.
Who Qualifies?
However, not everyone will be able to get loan insurance; there are some requirements to qualify. The home must be in Canada to meet the first requirement. The buyer must make a down payment of at least 5% on single-family and two-unit residences and 10% on three- or four-unit residences. You need to provide the down payment from either your own resources or a contribution from an close family member. The mortgage principle, interest on the loan, property taxes, heat bill, the annual site lease in case of household tenure, and 50% of applicable condominium fees should make up only 32% of your gross household income as an additional qualifier. An additional qualifier for mortgage insurance is your debt load should not be more than 40% of your gross household earnings. The amount of closing expenses and fees can also play a roll in deciding your eligibility for loan insurance.
So, whats the cost?
The broker pays the insurance premium to obtain loan insurance. Yes, the lender is the one who pays the premium, but believe me; they will pass the expense on to you. Does loan insurance cost a lot? It depends on who you talk to. There is a direct connection between the amount borrowed and the price of loan insurance. The more you borrow, the higher insurance will be. This helps buyers who save more for a down payment. They even give you options on how to pay the insurance premium. The premium can be paid in a lump sum or can be added into your loan expenses and be paid monthly. Purchasing loan insurance does not mean you are safe if you fail to pay on a loan. Insurance for the borrowed loan reduces risk for the broker. The good news for you is that you were able to buy a property you probably could not have purchased. Visit www.infoprimes.com and save on mortgage insurance.
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Life Insurance in Canada and the Choices Available
Choosing a life insurance plan for many Canadians is not apparent or understandable. What is life insurance for anyway? We want to care for our loved ones. Right?
It is perceived that life insurance is for those with big debt loads, young families, and young careers who want to protect their families. They are being intelligent and protecting their family incase of a tragedy.
Is it just for younger buyers, or will those who are older benefit from having life insurance long after the children are gone and the debt load is smaller? Thinking they are making a financially sound choice, many people stop buying life insurance. A little money might have been saved, but they have put their family at risk.
If you assume life insurance is expensive, it may not be what you think. Life insurance is much more affordable than it was ten years ago. In fact, there are over ten million Canadians in their forties and fifties who can purchase very affordable life insurance.
The older you get, you can take advantage of the different policies to protect your family and your wallet. For the near future, a term life policy may be smarter, safer, and cheaper. However, to prepare for long term, you have the option of permanent life insurance where you can get from traditional whole life, universal, and variable whole life insurance.
To help your future, these options will help you save money and secure your familys future.
You are offered the most guarantees with traditional whole life insurance. The yearly premium is guaranteed and as well as minimum guaranteed cash values and death benefits. Most of the whole life policies can use the surplus they earn to increase cash value or death benefits.
If you favor premium flexibility early in the insurance plan, universal life insurance is for you. Universal life has maximum guaranteed premiums and minimum guaranteed cash value and death benefits. As an alternative to dividends, universal life policies earn interest at a set rate every year.
For the more well-informed risk taker, there is variable life. Variable life has the fewest guarantees and because of that, it offers the most potential for cash value increases. There are obligatory guaranteed annual premiums and guaranteed death benefits.
It can be very beneficial for you familys future to purchase life insurance regardless of how complicated it can be. Visit www.infoprimes.com to get great deals and expert advice on life insurance.
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Mortgage Protection Lead Success
Mortgage protection leads are important to any insurance agent who wants to do well in the business and who wants to offer good service to their clients.
Not all leads are good however and an agent some times has to work much harder to secure a closing than anticipated. This occurs because people change their decisions as their circumstances vary..
Most agents know that the insurance business is a hard sell and that prospects have the concept that they can get this vital piece of resource at a later date.
It is when they are caught in awkward situations such as losing a job, becoming permanently disabled or dying do they or other family members realize how important it is to get protection.
An agent who does not use mortgage protection leads likely has to do a good deal of cold-calling. After appointments are set agents use their personal autos, often travelling long miles to the prospect’s home only to find that they’ve forgotten the appointment and isn’t there.
If the client is home then the agent can educate and instruct him, yet that does not guarantee closing as a prospect must be ready to accept and decide to be protected.
Other Issues Arise
Current circumstances of the prospect are another factor. The agent can actually use that situation to help the prospect to see the real need for insurance. With the current economy people tensed to with draw and become risk-averse in their decision making.
An agent’s task is to use the situation so a prospect can visualize the importance or insurance, and the likely outcome if they did not.
Having mortgage protection leads affords the agent more flexibility and confidence in handling a prospect. An individual would likely have enough information to realize the importance of insurance.
Instruct Your Prospects
An agent can make the decision to provide information to the prospect without any sales aggression or coercion. When a prospect is reluctant initially, it does not mean you must give up on closing a sale. The prospect may need some time to think things over. There may be a spouse involved so the agent needs to make sure that the spouse will be home when the appointment is set. Both parties have to mutually agree before the agent can complete the sale.
The mortgage protection leads allow the agent to deal with prospects that are more willing to work with and are also willing to trust the expertise of the agent. If the agent seems to have the best interest of the prospect at heart, the prospect will give the agent the opportunity to prove that.
People like to know that an insurance agent is not a shady individual. If the agent provides all the information including the advantageous and disadvantageous aspect of having insurance, the prospect gains reassurance and confidence in making the appropriate decision.
If you want to know how to make six figures in the insurance industry check on EQUITA’s mortgage insurance leads. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.
