Perhaps the largest purchase decision most of us will ever make is the purchase of our home. Throughout this process, we’re faced with many decisions along the way. You finally find the home you’ve been looking for and as we approach the finish line, our anxiety increases as everything has been building up. Now we have to get the home inspected, set appointments with the lawyer, real estate and mortgage agents. Then we take a look at the amortization table, and nearly throw up when we see the total cost of borrowing!
Now, with all the stress and excitement of buying a home the mortgage agent from the bank tells you to initial a long questionnaire that entitles you to “mortgage insurance.” “It’s only $20 - $40 per month and if anything ever happens to you or your significant other the mortgage is looked after!” Is it really looked after? Well, unfortunately it’s not always the case.
Click here to watch a video from CBC MarketPlace. Anyone who owns a home has to watch this! It’s absolutely frightening. If you are in these shoes, don’t worry. There is an easy and cost effective solution.
Why not own your own individual term life and critical illness policy? Unlike the bank insurance, you own the policy. Did you know that when you pay your insurance premium through the bank that the payment stays level throughout the amortization of your mortgage? However, if there is a claim (and it is actually approved) the death benifit only pays out based on the remaining balance of your mortgage, not its initial principle which your premiums were originally based on?
Scary stuff.
For more information: scott.wain@investorsgroup.com
Tuesday, October 21, 2008
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