Taking out a mortgage on a home is one of the most stressful financial decisions a person or couple will have to make. Like a “Dooms Day Prepper”, one has to plan for all scenarios.
Do your homework on Mortgage Life and Term Insurance before you consider purchasing a home. Many insurance companies are now changing how they assess you for insurance by having the policy “underwritten” upfront. This could be because Marketplace a Canadian T.V. series aired an episode five years ago on Mortgage Life Insurance. Apparently, you are only being approved to make insurance premium payments. It is not until the event of a death that the policy is “underwritten” and scrutinized to the point that it may be denied. All the insurance premium payments you have made will be refunded. This is great for the insurance companies because most people outlive the policy.
Real estate prices have risen dramatically across Canada since 2004 by 100%. If you were not a previous homeowner getting into the housing market now is very expensive. I can only imagine the stress young couples must feel trying to buy their first home.
My advise would be to start small, increase the value of your home by doing some renovating, and if necessary purchase a home with rental potential, for example a legal basement suite. Check with your City Hall for zoning bylaws, etc. and never act on hearsay, as the information may not be accurate.
The more fact finding you do will help concrete your home ownership plans and make the experience less stressful and rewarding.
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