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20 Jun

Keeping your economic future on the right path

General

Posted by: Steven Brouwer

 

 

 

 

Most working Canadians have an income range in the middle class.
This income class includes teachers, firefighters, plumbers, engineers, nurses, construction managers and chefs – workers from across the economic spectrum. They provide and consume the bulk of services that keep society afloat, driving economic growth and investment with every purchase.

The middle class also has great challenges. Wages have been stagnant and the cost of housing and everyday goods puts a squeeze on the average budget, leaving six out of 10 Canadians living paycheque-to-paycheque with most accumulating debt.

In part, this has to do with everyday life and the growing demands on our set of unique challenges. However, we need to “control the controllable” and be smart and strategic to get ahead.

Here are some tips to keep your economic future on the right path:

 1. Spend within your means.
Most people keep a balance at months end on their credit cards and lines of credit – some out of necessity, but some by choice because they want to keep up with the Jones’s or fill an emotional void. If you are trying to get ahead financially, ask yourself what your plan is to get rid of that debt? It should not be something that is with you to carry over a balance. It’s time to assess your lifestyle and how you are using your home equity and the market to your advantage if you own a home. Holding the debt is a costly mistake- most debts outside a mortgage range from more than five per cent to 19 per cent. Credit is an important part of life and you need it. The biggest life hack is to pay it in full every month with an auto setup payment – this one strategy saves costs, debt and stress.

2. Emergency fund is a must.
Ask yourself this, what would happen right now if your car broke down, your house need a new roof, or you lost your job? Most Canadians would have to go to credit cards or lines of credit.
You need six months of expenses put aside, period. If you don’t have this you will begin a cycle of debt. There are ways to do this automatic withdrawal into an account from your paycheque or when your mortgage renewal is up.

3. Giving your retirement a raise and start in high school.
Consider how long wages have felt stagnant while the cost of everything goes up. When you are young and your wages go up, increase your retirement contribution. Get compound interest working for you. Time is your friend. By saving a percentage automatically by paying yourself first, your investment grows your options. There are tax free savings accounts and RRSP’s that will begin the foundation of your financial future. It should start from the moment you get your first job, then when you fast forward through your 20s to 50s, your investment doesn’t have to be as large. Life will throw you enough challenges at that time to deal with, and you already have time and compound interest working for you, and you are in front of it, not chasing to catch up.

4. Relying on RRSP’s, OAS and CPP.
Contributing to tax advantaged products are one component of investing, but they have restrictions. Also, government future income plans are always going to be changing. Having a proactive mortgage and finance plan will allow you to get your assets working for you, so you can have multiple streams of income. Being self-sufficient is empowering, then if and when the other options are still available and advantageous, they are a bonus and you are in control based on your proactive abilities.
5. Spending too much on depreciating assets.
The average Canadian spends $570 a month on a new car payment. This can go up to as much as $1,400 per month- that’s just for the car, not insurance, gas, or maintenance. The problem is that it’s a depreciating asset. To put it into perspective, that range in payment takes away qualification for a whopping $150,000 to $400,000 in mortgage amount qualification. So for someone in the middle class who intends to buy a home, which is an appreciating asset, the car payment should be the absolute lowest priority, and should be avoided whenever possible. Think of the power you could have saving that kind of money or having it in an income-generating asset.

6. Having a will and keeping it current.
Your will should include your up-to-date investments, insurance policies, real estate and family gems. With life happening so quickly, it’s easy to have a few stages fly by, but then things can get messy. You don’t want your hard earned money in the hands of anyone but whom it’s intended for.

It’s never a bad idea to speak to a Dominion Lending Center mortgage specialist if you have a question.

13 Jun

Industry initials explained

General

Posted by: Steven Brouwer

Many of us will remember the television show, Mork and Mindy.

Imagine that you have just moved to Canada and you overhear a conversation, “ I was watching NBC and they said that the FBI arrested a criminal at IGA.”

You probably wouldn’t understand what they said because we all use acronyms. We often replace the long descriptions for many organizations, institutions and government bodies with the initials or short forms in conversations. The show was based on Mork, an alien, misunderstanding terms, expressions and common traditions that we have in our society. It made for a funny show but it’s not so funny if you are new to Canada or want to make the largest purchase in your life.

Imagine this same person speaking to a realtor or a mortgage broker when they started using abbreviations for words used in their industry. As a public service to any of you who may have recently arrived from a foreign county or another planet, I am going to define a few expressions that we all take for granted.

 

AMORTIZATION – How long you have to pay off the mortgage on a home. Typically in Canada you have 25 years. In Japan it can be 99 years. Payments are spread out equally over the specified time period . If they were not, you would have huge payments in the first few years and very small ones in the last 6 months of your mortgage term.

DOWN –  short for down payment. A deposit of 5% minimum is required for a home purchase.

FLEX DOWN – a borrowed down payment program, where the repayment of the loan is included in the debt calculations.

PULL – “He pulled my credit before the loan approval “ – a pull is a credit bureau report inquiry.

TRADE LINES –  a trade line is a credit card or cellphone  account, a loan or mortgage that appears on your credit report.

DEROGS – short for derogatory , referring to late payments on your credit report.

20/20 – refer to your ability to repay 20% of the mortgage balance or increase your payment by 20% without incurring a penalty.

MIC – short for a Mortgage Investment Corporation – a group of investors who will lend you the money for a mortgage if a traditional lender will not due to unusual circumstances.

TERM – although mortgages have 25 year amortizations, Canadians traditionally take terms of 1- 5 years and then renegotiate their mortgages. 1-5 years is the TERM.

DEFAULT – failing to pay your mortgage on time puts your mortgage into DEFAULT

FORECLOSESURE – If your mortgage is in default you can make your payments up or the lender will put your home in FORECLOSEURE and you will lose your home.

OPEN MORTGAGE – a mortgage where you can pay out the mortgage at any time during the term.

CLOSED MORTGAGE –a mortgage where you have agreed to pay the lender for a specified period of time . If you wish to terminate the mortgage, a penalty will have to be paid.

PIT – principal, interest and taxes – an amount  used to calculate how much  you  can afford to pay monthly on your home.  Often heat is also included in this calculation (PITH) .

High Ratio – a mortgage where the buyer has less than 20% for the down payment and needs to pay CMHC fees to insure it.

CONVENTIONAL – a mortgage where the buyer has 20% or more down payment or equity in their home.

While I have not covered all the terms you may encounter I hope that I have covered most of them.

If you find yourself talking to a mortgage broker who is using business expressions you should feel free to remind them that you are not in the industry and would like to the terms explained. Any broker worth their salt will be very happy to explain these terms to you. There are many Dominion Lending Centres mortgage professionals who are more than happy to answer your questions.

5 Jun

Purchase Plus Improvements – You just found your dream home… sort of.

General

Posted by: Steven Brouwer

In a competitive real estate market or a market that is suffering from a lack of available listings, the Purchase Plus Improvements mortgage could be your saving grace. Regardless of whether you’ve just started your search for a new home or if you’ve been hunting for months, this is something that you should be thinking about each time you walk into a potential house.

Of all the homes that you’ve looked at so far, you have likely walked into at least one home by this point and said to yourself: “Well this house looks great, but if it wasn’t for that incredibly dated _______”. You fill in the blank here… Kitchen, bathroom, flooring, basement, etc. If you have passed up the opportunity to purchase that potentially perfect property because of the costs of required improvements, it’s important that you know there is a solution to your problem. Enter, the Purchase Plus Improvement Mortgage.

In a nutshell, a purchase plus improvements mortgage allows you (the home buyer) to roll the costs of improvements into your mortgage. The new mortgage allows you the ability to finance those much-needed repairs and get you into that home of your dreams! The mortgage comes with a great interest rate and one simple mortgage payment. Had you chosen to purchase the home and not include the renovation costs into the mortgage, then you might end up financing the improvements on a higher interest rate unsecured debt which also give you a second payment to make each month.

The first step to take is a conversation with your Dominion Lending Centres mortgage broker about specifically how that Purchase Plus Improvements Mortgage would apply to your application and specific situation. Understanding the types of improvements that can be included in the financing will help you better understand which potential houses might work great for you.

Working with your Realtor, the mortgage broker will help guide you through the final approval process. The main difference between a Mortgage vs. a Purchase Plus Improvements Mortgage is the need for quotes. As part of the verification process, your mortgage broker and the lender will need to see a quote for the work that is planned for the improvements. The quotes will provide us with the cost and plan details required to secure the final approval. Getting you into a house of your dreams!

If you have questions about how a Purchase Plus Improvements Mortgage could work for you, take the time to connect with our team anytime!!

29 May

This Vs That 8: Renew or switch lenders

General

Posted by: Steven Brouwer

Renew (the mortgage industry meaning): to remain with the current lender by simply signing the renewal letter that comes in the (e)mail.

Switch (again, the mortgage industry meaning): to move from the existing lender to a different lender without leveraging any additional funds/equity; the outstanding balance remains the same.

Is renewing your mortgage with the current lender the best option, or should you consider switching to a new lender? The answer is provided with some simple math. As mortgage consumers, we want to save as much money as possible, plain and simple.

Seventy percent of borrowers that currently hold a mortgage simply sign the renewal letter they get. Most of the time they are leaving 20 – 40 basis points or 0.20% – 0.40% on the table. This puts millions of dollars back into the pockets of the lenders and their shareholders.

There are times when the current lender does not offer the best market rate or product for your situation. How will you know you are getting the best rate for your scenario? By contacting Dominion Lending Centres Mortgage Professional who works for you… not the lender.

So first things first: contact your DLC Mortgage Broker four months before the term matures to discuss the next term’s strategy. What do the next two, three or even five years look like? This will then lead to an interest-rate discussion. Can there be some money saved?

I have been working with a client over the past couple of weeks as her current mortgage is coming to maturity. Had she just signed at the bottom of the renewal letter she would have been overpaying by 30 basis points.

Current lender offered 2.84% for a 5-year Fixed term (Renew)

New lender offered 2.54% for a 5-year Fixed term (Switch)

Here’s what that looks like. Note the mortgage balance used was $330,000 (25-year amortization). This just happens to be the average mortgage amount in British Columbia.

Monthly Payment
Annual Payment
Payments Over 5 Yrs
O/S Balance After 5 Yrs

Interest Paid
2.84%
$1,534.74
$18,416.88
$92,084.40
$281,194.12
$43,278.52
2.54%
$1,484.87
$17,818.44
$89,092.20
$279,529.82
$38,622.02

Total Savings
$49.87
$598.44
$2,992.20
$1,664.30
$4,656.50

The biggest saving is in the total interest saved over 5 years. At the end of the day this borrower saved $4,656.50. Guess what she decided to do? Yes, SWITCH lenders.

In this scenario, it will cost the borrower $0 to make a switch. Would you put four 1000-dollar bills, six 100-hundred-dollar bills, one 50-dollar bill, one five-dollar bill, one loonie and two quarters in the fire? No, you would not.
Bottom line, make sure you have a discussion with your independent Mortgage Broker before (potentially) burning thousands of dollars.

24 May

Down Payment Verification – 5 Key Points

General

Posted by: Steven Brouwer

One of the essential aspects of every mortgage application is the discussion pertaining to your down payment. Home purchases in Canada require a minimum down payment of your own funds to be put towards the deal. Your stake in the purchase. It is important that during the discussions with your Mortgage Broker that all the cards are on the table pertaining to your down payment. Be upfront about your down payment and where it is coming from. Doing so can save you time and stress later on in the process.

Most home buyers are aware that they will require a certain amount of money for a down payment. What many do not realize is that lenders are required to verify the source of the funds to ensure that they are coming from an acceptable source. Here are a few facts to keep in mind:

1. Lenders require a 90-day bank account history for the bank account holding the down payment funds. The statements must include your name, account number and statement dates.

2. A common hesitation that we often hear from clients is that their bank statements include a lot of personal details. As professionals, we completely understand our clients concerns pertaining to your personal information and we always ensure that information is protected. Statements provided with blacked out names, account numbers or any other details are not acceptable. Unaltered documents are a requirement of confirming the down payment funds.

3. All large or unusual deposits need to be verified to ensure the source of those large deposits can be confirmed and can be used towards the down payment.

• Received a gift from an immediate family member? Easy, Gift Letter signed.
• Sold a vehicle? Easy, provide receipt of sale.
• CRA Tax Return? Easy, Notice of Assessment confirming the return amount.
• Transfer of funds from your TFSA? Easy provide the 90-day history for the TFSA showing the withdrawal.
• Friend lent you money for the house purchase…. Deal Breaker.
• A large deposit into your account that you cannot provide confirmation for…. Deal Breaker!

4. You were told that your minimum down payment was 5%, great! However, did you know that you are also required to show that you have an additional 1.5% of the purchase price saved to cover closing costs like legal fees?

5. Ensure that the funds for the down payment and closing costs stay in your bank account once you’ve provided confirmation. Those funds should only leave your account when they are provided to your lawyer to complete the purchase. Lenders have the right to request updated statements closer to closing to ensure that the down payment is still there. If money is moved around, spent or if there are more large deposits into your account, those will all have to be confirmed.

The last thing that anyone wants when purchasing a property is added stress or for something to go wrong late in the process. Be open with you Mortgage Broker, we are here to help and to guide you through the process. Not sure about something pertaining to your down payment funds? Ask us. We are here to work you through the buying process by making sure you know exactly what you need to do.

Thinking about buying a home, rental or vacation property? Talk to a dedicated Dominion Lending Centres Mortgage Professional in your area to find out about what your down payment requirements will be.

12 May

Determining the Best Mortgage…For YOU!

General

Posted by: Steven Brouwer

So you have saved, and saved and you are finally ready to start house hunting…but before you do, there are a few things that you should be looking into BEFORE you start buying. Namely, your mortgage options. Did you know that there are various mortgage products? Or that each mortgage product has it own personality? They all do, and there is a mortgage product that is just right for you…we just have to find it first!

1. Understand your Expenses.

a. Do you know what you spend in a month? Do you have a monthly budget? With buying your new home, there are several associated costs that you should consider. These include the down payment, closing expenses, ongoing maintenance, taxes and utilities. If you have a budget, revamp it to maximize your saving. If you don’t have one, it is a simple thing to do! Track your spending by listing your household income and your expenses. This will give you what you spend in a month, how much you can save, and a guideline to follow.

2. Knowing your Job Stability

a. This is key to understanding and finding the right mortgage. You need to if you are in an in-demand occupation, or if your position maybe obsolete in a few years. You should also consider the length and term of your position—how long have you been there and how long are you planning to be there?

3. Consider your Limits

a. You and your Dominion Lending Centres broker need to understand what your payment and price limits are. This will determine if a fixed or variable rate mortgage is better for you.

b. You also need to know your amortization. This is the length of time that it will take for you to pay off your mortgage, based on the factors we previously discussed.

4. Know what you want in your home

a. To ensure that your home will grow with you consider these 4 questions:

i. Location: Are you close to the amenities you desire?

ii. Size: Can you comfortably accommodate your family and daily activities?

iii. Special Features: What do you want for added comfort & convenience in your home

iv. Lifestyle: Are you planning on adding to your family, or moving away soon?

Finally, and this is CRITICAL! Get PRE-APPROVED before you begin shopping for your new home. Know your financing, and what is available for you—this way you can shop stress free and you can negotiate for the home of your dreams!

10 May

Reading This Could Save You Thousands of Dollars!! (AKA How to renew your mortgage in 5 easy steps)

General

Posted by: Steven Brouwer

What is a mortgage renewal you ask?

Each mortgage has a set term which can vary from 1-10 years. Just before the end of your term you will receive an offer from your current lender and you have 3 options:

1. Sign and send back as is.

2. Check the market to make sure you are getting the best rate and renegotiate with your current lender

3. Move the mortgage to a new lender.

Option 1 is not a very good idea in my opinion. The onus is on you to make sure you are being offered the best rate. Banks are a business like any other and they are seeking to make the highest profits they are able as to keep their shareholders happy. There is nothing wrong with that. That does mean however that you as a savvy consumer should take a few minutes to ensure you are being offered the best possible rate you can get.

Think of it as the sticker price on a vehicle at a dealership. The rate you are being offered is a starting point for discussion, not the final price. Let’s look at an example:

– Mortgage of $300,000 with an amortization of 25 years.

– Your offer is for 3.19% for a 5 year fixed = $1449.14/month and you will owe $257,353.34 at the end of the term

– Best rate is 2.59% for a 5 year fixed = $1357.38/month and you will owe $254,372.59 at the end of the term

You would pay $91.76 less each month or $5505.60 over all 60 months and still owe $2,980.75 less.

So you need to ask yourself if you are OK handing that money over to the mortgage provider or if you would prefer to keep it yourself and I am pretty sure I know what your answer will be.

So here are the steps I mentioned to save yourself all that money.
Receive the offer from the mortgage lender and actually look at ASAP so that you have enough time to make an informed decision.

Research via the internet and phone calls to find out what the best rate even is. Phone your current lender and negotiate! OK, you are going to have to get downright assertive and that may be uncomfortable but when you compare your comfort to the thousands of dollars you could save, you will see that it’s worth it.

If said lender will not offer you the rate then move the mortgage. You will have to provide paperwork and complete the application but if you keep in mind the example from above then I repeat, it’s worth it.

Take a look at your budget and see if you can increase the payments to decrease the mortgage and save yourself even more as the overall interest costs decrease.

Keep in mind when that renewal notice arrives that you literally have the power to save yourself money and you are not obligated to accept the first offer which is presented to you and I truly hope you do not. If you need some more information, please do not hesitate to contact your Dominion Lending Centres mortgage professional.

9 May

Spousal Buyout Mortgage?

General

Posted by: Steven Brouwer

If you happen to be going through, or considering a divorce or separation, you might not be aware that there are mortgage products designed to allow you to refinance your property in order to buyout your ex-spouse.

For most couples, their property is their largest asset and where the majority of their equity has been saved. In the case of a separation, it is possible to structure a new mortgage that allows you to purchase the property from your ex-spouse for up to 95% of the property’s value. Alternatively, if your ex-spouse wants to keep the property, they can buy you out using the same program.

Here are some common questions about the spousal buyout program:

– Is a finalized separation agreement required?

Yes. In order to qualify, you will be required to provide the lender with a copy of the signed separation agreement. The details of asset allocation must be clearly outlined.

– Can the net proceeds be used for home renovations or to pay out loans? 

No. The net proceeds can only be used to buy out the other owner’s share of equity and/or to pay off joint debt as explicitly agreed upon in the finalized separation agreement.

– What is the maximum amount that can be withdrawn?

The maximum equity that can be withdrawn is the amount agreed upon in the separation agreement to buy out the other owner’s share of property and/or to retire joint debts (if any), not to exceed 95% loan to value (LTV).

– What is the maximum permitted LTV?

Max. LTV is the lesser of 95% or Remaining Mortgage + Equity required to buy out other owner and/or pay off joint debt (which, in some cases, can total < 95% LTV). The property must be the primary owner occupied residence. - Do all parties have to be on title? Yes. All parties to the transaction have to be current registered owners on title. Solicitor is required to do a search of title to confirm. - Do the parties have to be a married or common law couple? No. The current owners can be friends or siblings. This is considered on exception with insurer approval. In this case, as there won’t be a separation agreement, there is a standard clause that can be included in the purchase contract that outlines the buyout. - Is a full appraisal required? Yes. When considering this type of a mortgage, it is similar to a private sale and a physical appraisal of the property is necessary. If you have any questions about how a spousal buyout mortgage works, please contact your local Dominion Lending Centres mortgage professional. Be assured that our communication will be held in the strictest of confidence.

5 May

Emotional Homebuyers Can Lose Out On the Best Deals

General

Posted by: Steven Brouwer

Buying a home is financial decision, but also an emotional experience.
Before we’ve explored every room, we often start imagining our new lives there. Where our furniture will go. The parties we’ll host in the open-concept living-dining space. The mornings we’ll spend at the breakfast bar overlooking the garden or skyline… When a home speaks to us emotionally, the fear of missing out on it can set in fast.

That’s especially true in a real estate market where multiple offers and bidding wars are common, where a financing condition can put you at a disadvantage, and where prices are at all-time highs.

According to the 2017 Genworth Canada Homeownership Study, 60% of first-time buyers were worried they might miss out on the “perfect” house. That can lead emotional homebuyers to act against their own best interests by, for example, forgoing important conditions, or paying more than they had budgeted.

There’s no need to lose the dream — you will host those parties — but you’ve got to take emotion out of the deal, and these strategies will help.

Assemble your entire team before looking at any property.

That means: interview experienced real estate agents with expertise on your desired neighbourhoods; consult a financial advisor to help determine how homeownership fits into your other goals (a wedding, saving for a child’s education, retirement planning, etc.) and establish a budget including “what-if” scenarios, such as a layoff or maternity leave; find a DLC mortgage broker to help you secure a pre-approval, explain your options, and answer your questions here. You may be able to achieve homeownership sooner than you think. Find out how.

Get the names of 3 home inspectors.

Call and introduce yourself now. Many emotional homebuyers forego the inspection process in an effort to make their bid more competitive. That’s a risk. With 3 recommended inspectors on speed dial, you should be able to get a qualified professional to visit a property the day you want to make an offer. Your real estate agent is one source of referrals, or check with the Canadian Association of Home and Property Inspectors.

Don’t visit properties outside your price range.

Best-case scenario, you’ll walk away deflated. Worst-case scenario? You’ll bid on something you can’t comfortably afford. Stick to your homeowner budget (likely to be higher than renting, since it includes property taxes/maintenance fees, utilities, etc.) and practice living on it for a few months before you decide to make a purchase.

Focus on the things you can’t see.

The efficiency of the heating and cooling systems, the age of the roof, the state of the electrical… these matter most when it comes to deciding if a home is a good financial deal. Hardwood floors, quartz counter tops, and stainless steel appliances can be seductive, but they shouldn’t be a priority.

Surprise repairs and upgrades to fundamentals — like a furnace on its last legs, plumbing that isn’t to code, or uninsurable knob-and-tube wiring — could sink your budget. And if problems have been covered up, you might just have to rip out those magazine-worthy finishes and details.

There is no disputing that buying a home is a massive financial decision as well as an emotional experience. But minimizing emotions throughout your homebuying experience is a heads-up move that will ultimately benefit you.
For more tips on what you should know before you purchase a home visit www.homeownership.ca.

1 May

What Does It Actually Mean To Co-sign For a Mortgage?

General

Posted by: Steven Brouwer

There seems to be some confusion about what it actually means to co-sign on a mortgage and you know that where there is confusion, your trusted mortgage professional seeks to offer clarity. Let’s take a quick look at why you may be asked to co-sign and what you need to know before, during, and after the co-signing process.

So why are you being asked? Last year there were two sets of changes made to the mortgage world which can likely explain why you are receiving this request in the first place.

The first occurred early in 2016 whereby the overall lending standards were increased in regards to an individual’s management of their credit and the resulting responsibility of Canada’s financial institutions to ensure they are lending prudently. We have seen an increase in requests for co-borrowers to help strengthen applications when credit or job stability is an issue.

The second happened just in October. A new ‘stress test’ rate applies which has especially impacted borrowers with less than 20% down. They must qualify at a rate of 4.64% though their actual interest rate is much lower. This has decreased affordability for many which means they could be looking for a co-borrower to increase how much home they can qualify for.

If it was me, I would ask questions as to exactly why the applicant needs a co-borrower. If it is a credit issue then you need to assess if that an acceptable risk. If it is a matter of not enough income, you need to assess that instead. What is the exit strategy for you all from this joint mortgage?
What can you expect? You will be required to complete an application and have your credit pulled. As you are now a borrower the banks will ask you for all the documentation that the main applicant has already provided. This can include but will not be limited to:

– Letter of employment
– Paystubs
– 2 years Notice of Assessments, Financial Statements and complete T1 Generals
– Mortgage statements on all properties you own
– Bank statements if helping with the down payment
– Property tax bills
– Lease agreements
– Divorce/separation agreement

So you get the idea. You are now a full applicant and will be asked for a whole bunch of paperwork. It is not just a matter of saying yes. Once the application is complete and all conditions have been met with the mortgage, you will have to meet with the lawyer as well.

What do you need to be aware of?

1. This is now a monthly liability according to the world. You will have to disclose this debt on all your own applications going forward. It can affect your ability to borrow in the future.

2. Each lender is different in their policy as to how soon you can come off the mortgage. Familiarize yourself with this. Are you committing to this indefinitely or only for a couple of years?

3. Mortgages report on the credit bureaus so you could be adversely affected if there are late payments

4. If the main applicant cannot make the payment for whatever reason, you are saying that you will. Make sure your budget can handle that for a few months.

A few things you may want to consider if you do agree to co-sign:

– Ask for an annual statement to be sent to you as well on both the mortgage and the property taxes.

– Consider a joint account for mortgage payments so that you can check in every so often to ensure all payments are being made on time

– Talk about life insurance! If the worst occurs, then at least have enough of a policy in effect, with yourself as the beneficiary, to cover a year of mortgage, taxes and bills so that you are not hit with an unexpected series of expenses until the property sells.

So though you just want to help your loved one into their dream home, you are all better served if you know exactly what you are getting into and are prepared for the contingencies. We here at Dominion Lending Centres are ready to help!