Mortgage Insurance: What are your options?

.[caption id="attachment_2043" align="alignright" width="300" caption="Credit to Feathered Tar photostream on flickr"][/caption]Buying a new home is an exciting experience because it represents your hopes and plans for the future. For most Canadians, it also means having a mortgage and making regular mortgage payments. Often the financial institution you have your mortgage with will offer you mortgage insurance. Is it the right thing to do? Does it offer the protection you need?

What is mortgage insurance?

Mortgage insurance pays off the amount left owing on your mortgage if you pass away. Here are some facts you should know before deciding on how best to ensure that your mortgage is paid off in the event of your death:-        The amount covered by mortgage insurance decreases as the amount owing on your mortgage decreases. However, premiums DO NOT decrease, they remain the same.-        The insurance proceeds are paid directly to the financial institution.-        You may not be able to take your insurance with you if you move your mortgage to a new mortgage company. This means having to provide current medical and health evidence to become insured.-        You may not be able to insure both you and your spouse if the mortgage is registered in only one person’s name.

What is the alternative?

Having your own individual life insurance policy offers you the protection of covering your family’s financial needs including your mortgage in the event of your death. You also have the flexibility of naming a beneficiary of your choice. Your family may decide to use the benefit to pay down a low interest mortgage and invest the rest. Or they may need the finds to cover other expenses. The choice is theirs.Also, it’s important to remember that since you have an independent life insurance policy from your mortgage, you can transfer your mortgage from one lender to another without affecting your coverage. You can also choose between temporary insurance and permanent insurance which can be a part of your long term financial plan. You are able to insure both spouse for whatever amount you’d like so that you can cover other debt or financial needs as well.The choice is yours but having a discussion with someone that is well versed in both options is important.

To discuss your best options for Mortgage Insurance, please call me anytime.

How to spend a wintery day in downtown Winnipeg

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[caption id="attachment_1924" align="alignright" width="300" caption="Credit to Agent Magenta photostream on flickr"][/caption]

With the weather getting chillier, it’s tempting to stay indoors as much as possible. But you don’t necessarily need to stay at home when you have the joys of downtown Winnipeg at your fingertips! If you’re feeling restless sitting on the couch but you’re reluctant to expose yourself to the freezing temperatures, explore downtown Winnipeg to see what indoor activities the city has to offer.

Here’s how you can spend an entire day in downtown Winnipeg in the winter:

For breakfast, visit Deseo, the new restaurant at the Royal Albert Arms. Rather than focusing on traditional fare, this tastefully-decorated, glass-walled bistro features Spanish-inspired meals such as scrambled eggs with chorizo and cornbread.

After lingering over breakfast, take a wander to downtown Winnipeg’s Red River Book Shop. It boasts an impressive collection of second-hand books from which you can find some real gems. Music lovers can walk down a block from the bookstore to check out Into the Music – not only does it have a number of great records, but the store also has information about upcoming shows and you can buy tickets right there to see bands play at local venues (many of which are right there in downtown Winnipeg).

Art is a hidden delight in downtown Winnipeg. There are artists and art shows at many of the historical buildings that you walk past as you wander through the streets of the Exchange District. The Cre8ery has a wide variety of different styles of art to satisfy all tastes.

Take a lunch break at Mondragon or The Fyxx; from sandwiches to soups to curry, there are plenty of options. Many of the dishes are made with local ingredients and everything at Mondragon is vegan.

Browse Toad Hall Toys in the afternoon for some creative, fun ideas for Christmas presents. This downtown Winnipeg toy store is famous across Canada and adults will find the products supplied here to be just as entertaining as children will.

If your idea of shopping involves clothes, walk into any of the boutique outlets all within a few blocks of each other on McDermot Avenue in downtown Winnipeg. There are stylish New York designs, vintage options and clothes made by local designers to choose from.

Stop at BluFish for an excellent sushi dining experience; afterward, see a theatre performance at Manitoba Theatre Centre (either the main stage or the Warehouse theatre down the street) or at the Prairie Theatre Exchange at Portage Place. People interested more in cinema than theatre will enjoy the unique Cinematheque, which often showcases work by local filmmakers. Towne 8, IMAX and the Globe Cinema are other great movie theatres in downtown Winnipeg.

To complete your day, go for a drink at The Lo Pub, Yellow Dog Tavern or King’s Head Pub to rehash the theatre or film performance that you just saw. If you’re still feeling lively, extend your visit to downtown Winnipeg by putting on your dancing shoes and going out to one of several clubs in the area.

Head home at the end of your day knowing that you have put a cold, wintery day to good use: downtown Winnipeg is brimming with indoor culture for you to enjoy all winter long.

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Land Titles Transfer Tax:  A financial 'kick in the 'nads'

. [caption id="attachment_1890" align="alignright" width="300" caption="Credit to Robert Galloway photostream on Flickr"][/caption] A few weeks ago, I wrote about Winnipeg Land Titles office, and the reason why there is usually a 3 to 4 week delay between the date-of-possession for a home, and the date-of-receiving money for the sale.  A couple of days ago, I sat down with a nice couple who were writing an offer on a house, and the conversation turned to the 'Closing Costs' of the purchase.  The conversation went something like this:

Mr. Buyer: So aside from the lawyers fees (which we had already discussed), what other costs will I need to budget for? Bo: Well, there will be home insurance.  Good news is that you won't have to pay any property taxes, because we're doing this in January.  But of course you have to budget for the Land Titles Transfer Tax. Mr Buyer:  A tax?  Just for changing the title of the house?  How much is THAT going to cost?

I did a quick mental calculation, and gave him the cost, and then watched as his face went thru the classical 5 stages of grief, from Denial ("This Can't Be Right), to Anger ((F*#@ing Govm't), Bargaining (Isn't there a way around this), Depression (Oh, Man.....that's alot of dough) to finally  Acceptance (Well,  It IS a nice house and there is NO WAY around it, short of leaving our province).  So just how much is the government raking in with this tax?

Land Titles Transfer Tax calculation:

While Manitoba is not the only province to impose this tax, it is by far the most aggressive and onerous.  Thru a set of formulas, we arrive at a figure of $1720 for a $200,000-house or condo.  With Winnipeg's average house price hovering around the $230,000 mark, we can see that our Provincial Government is collecting approx. $2000 in taxes, EVERY TIME the title of a house is transferred.  But wait, you say....  didn't Bo just tell us that it costs $1720 for a $200K home? Yes, but I haven't told you the worst part:  ABOVE the $200K price, this tax adds an additional 2% on EVERY DOLLAR. So, a $300,000 home will cost you $3720   (calculated by adding the $1720 base, plus 2% on the additional $100,000 price = $3720) While the Land Titles Transfer Tax is especially difficult for young, first-time home buyers, even people 'with money' find an added tax of 4 grand or more to be a financial 'hit'.  For that reason, Winnipeg REALTORS® have been lobbying to change this regressive tax.  Let's bring it more in line with other western provinces.  Ideally, inline with Alberta, where a $200K home costs $75 in Land Titles Transfer Tax and a $300K home costs $95.  But heck, let's not even look at those numbers, lets instead compare to my wife's home province of Saska-Bush ....  where it costs just $1200 to transfer the title of a $400,000 home.   Manitoba's fee for transferring the Title of a $400,000 home:  $5,720 For a look at more comparisons and for a more in-depth article on the Land Titles Transfer Tax, go to the Winnipeg REALTORS® website at http://2muchltt.com There is even a link to contact your local MLA...remember, next year's election is only about 10 months away.

Let's do something about this Land Titles Transfer Tax.

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