If there are two things that Canadians like to complain about, they are hidden fees on any type of service and insurance companies. No one likes going through months of searching through Ajax homes for sale and then finding out at the end that it's going to cost thousands of dollars more to make the transaction. And of course everyone hates the idea of dealing with an insurance company; high premiums and low rates of return are common complaints toward the home, auto, and personal insurance companies.
Add the federal government to the list, and you seem to have a recipe for complaint soup. However, this does not seem to be the case when it comes to mortgage insurance, which involves all three of the most hated measures in Canada. Half the time someone pays for Kingston Ont homes or Windsor Ontario homes, they have to pay mortgage insurance. And yet, according to consumer watch dog groups, not a lot of people complain about this fact.
Most people in the reporting business feel that this is not because Canadians are happy about this product, but rather because they are unaware of what it means in some aspect. What we are going to do here is spell out the realities of mortgage insurance and what they mean - and cost - to a home owner.
First, let's be clear: almost half of all purchasers of Canadian real estate, whether they are looking at Markham homes for sale or condos in Vancouver, will pay mortgage insurance. It is a requirement for anyone putting less than 25 percent down on a home they are buying, and that is almost 45% of home buyers in the market today. In fact, it is kind of hard to believe that more than half of the population can put 25% down on a home!
Be that as it may, mortgage insurance is probably a hidden fee that you paid. The fees are essentially handled by one company, Genworth, with about a quarter going to the federal government. People don't realize they are paying many times because the fees are often built into their mortgage rate. Toronto clients may go through the whole cycle of home ownership without realizing that they are paying out thousands in mortgage insurance!
Another major misunderstanding occurs among people who do know that they have mortgage insurance. They believe that it will cover the costs in the chance they default on their payments on real estate in Toronto. This is not the case. Rather, insurance covers the difference between what is owed on the house and what it will actually sell for. Essentially, it makes a customer a zero risk prospect for a lending institution.
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