Chris Grimes

It truly is becoming a buyer's market. Housing prices have begun to drop with the downturn in the economy and fewer and fewer people are looking to make the change in properties; upsizing may be a thing of the past. People are looking for smaller and more affordable homes, especially as market and job volatility are on the rise.

According to Desjardins Group, their index of Canadian Housing Affordability is returning to historic norms, from recent years where cities were seeing double digit increases. This past year has seen the opposite. Canada's housing prices are down 12.6% across the board in Canada (however Ottawa has continued to buck the trend with another year of increase).

Not only will buyers benefit from the lower housing prices but there is also added relief from the banks as they lower their posted rates. The Bank of Canada has also suggested it may lower the posted rate another ¼ to ½ point in December.

Very few times in our history have Canadian buyers been in a position to be able to buyer cheaper houses and receive great mortgage rates. If you are considering buying, it may be a good time to call your REALTOR®.

The Real Estate market in Ottawa and all across the country has moved from a heavily favoured Seller's market to a Buyer's market. More and more homes are becoming available for sale so how do you separate yourself from the rest and make your sale first?

Experts are suggesting that you update your home from small touch-ups to full renovation projects. Start with the kitchen; change the wooden cabinetry or simply change the cabinet handles can bring your home up-to-date. Add a fresh coat of paint and perhaps change the backsplash.

Up next transform your bathrooms, with new faucets, paint and matching towel racks. Try to use neutral tones for your wall, to brighten your space. A great low-cost reno that can modernize the space is to replace your old light fixtures. These small, inexpensive updates can make your home look newer and more inviting to would be buyers.

Remember the ultimate goal is to Sell your home for the price you want. Imagine about what you would think walking into your home for the first time, and then decide if there are small changes that would invite you to put an offer in.

For a full list of 10 renovations that can help sell your home, click here - we would be happy to send you a copy of our free report.

If you have any suggestions on how to sell your home in a Buyers market let our readers know by adding a comment below.

Earlier this month GMAC had looked as though they were preparing to move out of the Mortgage business all together. In the U.S GMAC LLC lost $1.91 billion in their third quarter from their Mortgage owned company, ResCap. In Canada, they recently put feelers out to sell off their mortgage brokerage arm, Mortgage Intelligence.

However, yesterday they announced they would enter into an agreement to purchase ResMor Trust Company from GMAC Residential Funding of Canada Limited, an indirect wholly owned subsidiary of Residential Capital, LLC.

ResMor Trust Company (www.resmor.com) is a federally regulated trust company operating across Canada focused on residential mortgage lending, mortgage servicing and deposit products. It currently has more than $5 billion of mortgages under administration representing over 31,000 homeowners. ResMor originates all of its products through the brokerage community. ResMor is a member institution of Canada Deposit Insurance Corporation (CDIC).

Second to the mortgage interest rate, the pre-payment privileges are often the most important factor when determining which mortgage product is best for you. However, very few people ever take advantage of this great feature. Taking advantage of the pre-payment privileges allow you to pay a certain portion of your mortgage on an annual basis, penalty free. This can be as much as 25% of your total mortgage. Typically, the minimum lump sum payment is $100 and on certain products you can make as many payments as you like throughout the year.

$150,000 Mortgage at 7%

Payment Frequency is another great way save thousands on your mortgage. There are now many types of payment plans that can be setup to meet your needs. Here are a variety of payment types:

· regular monthly

· regular bi-weekly

· regular weekly

· semi-monthly

· accelerated bi-weekly

· accelerated weekly

$150,000 Mortgage at 7%

For the last several years Mortgage Life Insurance has drastically evolved and has out grown its name. Many banks and insurance companies are now referring to this product as Asset Protection. However, what is it they are protecting?

In the past Mortgage Life Insurance, did just what it says, "Life" Insurance. The policy holder could insure, in the event of death that the remaining balance of his or her mortgage would be paid out. This is meant to offer peace of mind and to reassure their family would be taken care of, by ensuring they may stay in their home. This has now evolved; mortgages can now be insured for death, disability and/or critical illness.

Mortgage Life Insurance will cover up to $1,000,000, in the event of the policy holder's death.

Disability Insurance will cover up to $3,500 per month in the event of a short term or permanent disability.

Critical Illness Insurance will cover up to $1,000,000 in the event of a terminal illness.

Benefits

· Portable (assuming no changes to the value of the original mortgage)

· Rates do not increase with age

· Benefit payments are not affected by other plans

· Easy application

· Payment can be built in with your mortgage

· Peace of mind and reassurance

Is Asset Protection worth buying for your family?

With Mortgage Life, Disability and Critical Illness Insurance you are covered for many of life's unfortunate twists and turns but it is important to not just sign the paper that your bank or broker places in front of you.

Back in Feb 2008, CBC Market Place ran a segment on two unfortunate situation where clients weren't totally informed about their policies. They signed up and were not able to receive the insurance that they expected when the time came that they needed to submit their claim. This however, should not scare people from buying this important policy; it does provide peace of mind as long as you fully understand what you are purchasing.

Now who sells this type of insurance?

By law in Ontario, whenever you secure financing for a home you have to be offered Mortgage Life Insurance. When a bank offers this type of insurance it's called a Creditor Insurance.

Creditor Insurance is offered by a Mortgage Agent and is considered a group policy. Its benefits are that you will never have a medical exam, the insurance is portable, and the premiums will never go up as long as you have your mortgage.

Term Life Insurance is a policy created specifically for you as an individual or couple. This can only be sold by a licensed Insurance Broker or Agent. Medical exams will be preformed and the policy is not a declining coverage. Often this type of insurance is cheaper however, because the policy is evaluated individually and you may therefore not be approved quite as easily. Also noteworthy, Term Life Insurance may not pay out if you have other Life Insurance policies in place. It is best to check with your Insurance broker before paying for this type of policy.

Do you have Mortgage Life Insurance? Let us know and also why your purchased it. Just post a comment below.