Archive for December, 2010:
How to Save While Getting a Great Mortgage
Since a Canadian mortgage is a long term investment, saving a little each month, or even each year, can make a great difference in the future. By doing comparison shopping, with a little work and a little comparison shopping when obtaining your mortgage quotes, there are ways to save on your mortgage.
Closing costs
Closing costs can add up to thousands when your mortgage is initially taken. Appraisal fees, title insurance, attorney fees and banks fees can really add up. If you are refinancing a mortgage to take advantage of the new lower interest rates, shop around and learn the closing costs of each mortgage. If an appraisal was performed less than 2 years ago, is another needed? Can the title insurance just be updated rather than a new policy issued? Will the bank waive other fees? Learning these things up front can save plenty.
Mortgage Insurance, Is It Needed?
Mortgage insurance protects the lender if you default on the mortgage. It is required for high ratio loans, those with less than a 20% down payment, mortgage insurance is required. It is sold by 3 entities in Canada, including the Canada Mortgage and Housing Corporation (CMHC). A mortgage insurance premium can vary between 2.75% and 5% and is added as a closing cost, though usually financed. 5% of a $200,000 mortgage is $10,000 so mortgage insurance isn’t cheap. If you can come up with enough of a down payment, or go down on the price of the home you intend to purchase, saving on mortgage insurance can be a wise investment.
Shopping Around
Comparing Canadian mortgage rates has never been easier, since the web and mortgage broker business can provide you with cheap mortgage quotes from all over Canada. Even a single percentage point savings on your interest rate will translate into thousands during the mortgage term. Your mortgage broker will have dozens of quotes on hand for you or you can obtain quotes on your own. Be sure to learn the exact terms of each mortgage quote you receive so you can put pen to paper and perform an analysis. Add all factors, including rate, closing costs, insurance, prepayment penalties and the possibility of rate increases into you equation and pick the scenario that is best for you.
How to Determine the Best Car Insurance Company
It is important to get your car insurance policy with an insurance company that is reputable, reliable and would be able to provide you with coverage and assistance that you need in the event that you need it. Because of the large number of insurance companies today, however, looking for the best one might not be the easiest thing to do. To help you out, here are some steps that you can follow to determine which would be the best car insurance company for you.
The first step would be to search online. The internet would be the best way to look for insurance companies who would be able to provide you with a good policy. As you search online, visit their websites to learn more about the background of each company. Read about the types of policies they are offering as well as their rates to determine which ones have the insurance policies you need at prices you can afford.
It would also be good to research about the companies you are considering. You can visit review websites as well as forums that are related to car insurance to hear about the experience of other policy holders with their insurance companies. This would also allow you to interact with them and ask specific questions that only existing policy holders can answer.
You can also consult with an insurance broker or an agent to provide you with a list of some of the best car insurance companies in the market, based on your budget and the coverage you are looking for.
Lastly, you can ask your trusted friends, relatives and colleagues for recommendations on a good car insurance company. They would be the best people to ask for good suggestions on companies where you can get a policy from. They might even be able to give you some tips on what you can do to get the best rate from the car insurance company that they have their policies with.