I’ve written in the past about how Genworth, the leading private-sector mortgage insurer in Canada, will work with you if you are anticipating problems making your mortgage payments in the future, and now they have released an online tool to start the process in the privacy of your own home.

This simple, 4-screen questionnaire, that takes only a couple of minutes to complete, will give you a brief description of how they might be able to help you, based upon your answers. It ends with a contact form so that you can start the process in complete privacy. Or you can contact your lender, or contact me and I will help you through the application process if you can’t make your mortgage payments.

I think it is excellent that owners of real estate are able to have such great protection for their investment; it is such a complete opposite of how things are done in the USA. Banks here do not want to own real estate; they’d rather see people stay in their home.

As I’ve said in my previous post, your mortgage must be up to date to take advantage of this opportunity, so when you hear that you might be laid off, that is the time to take action.

What do you think of this proactive move to help keep families in their homes? I’d love your comments.

And to be fair, here is some information from CMHC . . . 

Dealing with Mortgage Payment Difficulties

When unforeseen financial circumstances impact your ability to make regular mortgage payments, it’s important for you to take quick action. With early intervention, cooperation, and a well executed plan, you can work together with your lender to find a solution to your financial difficulties.

What Can I Do to Help?

If you find yourself facing financial difficulties, as a result of job loss, family income reduction, or for other reasons, it can be an overwhelming experience leaving you feeling uncomfortable and unsure of what to do. By following these three simple steps, you can make a big difference in resolving

your financial difficulties.

1. Talk to your lender

To increase the chance of successfully managing your financial situation through early intervention, call your lender at the first sign of financial difficulty;

Ask the lender about information on the options available for managing your financial situation; and

Keep the lender informed as circumstances evolve.

2. Clarify the financial picture

In order to help your lender fully understand your financial situation, before meeting with your lender, prepare a detailed list of financial obligations including any credit cards, loans, household bills with the amounts owing and their due dates. Be sure to include information about your current income, savings accounts, investments, and any other assets.

3. Stay informed

The more information you have at your disposal on managing your finances, the easier it will be to make the right decisions.

Take Charge of Your Debts is an online tool from the Government of Canada that is designed to help borrowers like you understand debt problems, and includes information on making a budget, budget counselling, collection agencies, credit, and credit repair. To view this tool, log on to www.ic.gc.ca (Industry Canada) and search for “Take Charge of Your Debts”.

How Can Lenders and CMHC Help?

Your lender wants to establish and maintain a positive relationship with you over the long term. As mortgage professionals, they are fully trained and have the tools to help you deal with the temporary financial setbacks that you may be facing.

For mortgages insured by Canada Mortgage and Housing Corporation (CMHC), CMHC provides lenders with tools and the flexibility to make timely decisions when working with you to find a solution to your unique financial situation. These tools include:

Converting a variable interest rate mortgage to a fixed interest rate mortgage in order to protect you from a sudden interest rate increase, should one occur.

Offering a temporary short-term payment deferral. Your lender may be prepared to offer greater payment flexibilities, particularly if previous lump sum prepayments have been made, or if you have previously chosen an accelerated payment schedule.

Extending the original repayment period (amortization) in order to lower your monthly mortgage payments.

Adding any missed payments (arrears) to the mortgage balance and spreading them over the remaining mortgage repayment period.

Offering a special payment arrangement unique to your particular financial situation.

CMHC is also willing to consider other alternatives proposed by the lender to resolve or avoid mortgage payment default. In every case, the options available will depend upon your individual financial circumstances.

CMHC is Canada’s national housing agency. For over 60 years CMHC has shared a wealth of knowledge and housing expertise to help create an informed and reassured homeownership experience for Canadians.

The following checkl ist

is intended to give you a guide to choosing your home insurance. It is not intended to be an exhaustive list of questions.

Top 10 questions to ask your insurance provider BEFORE you purchase or renew your insurance:

1. What kind of homeowners policy do I have, and who/what is covered under it?For example, your insurance needs to cover you for replacement cost of the house only, not the land. Also, if you have valuable possessions, you may well need a special rider to cover certain things. I have one of these, an Inland Marine rider, to cover my camera equipment. There are also some things that cannot be insured; an example of this would be my wife’s $40,000 worth of collectible china – because it is breakable, our insurance company will not cover it.
2. How do I know if I am adequately insured? Your insurance agent will be able to provide you with some worksheets to come up with the value of your possessions (contents), and they will also be able to tell you how much your actual house is being insured for. Now’s not the time to try and save a few sheckels on your premiums by under-valuing your prized possessions. Remember, in the case of loss or destruction, you will have to replace them.

3. What is NOT covered in my homeowners policy? (What are the “exclusions”?)

   If, for example, you use a laptop computer, and maybe you take it on the train with you to work, but don’t use it for work, will it be covered by your homeowners policy? Or if, like me, you have a collection of camera equipment, will it be covered by your homeowners policy or will you need a separate rider?

4. Do I have replacement cost? Guaranteed replacement cost?

   It wouldn’t be very good to find out that your insurance only covers the cots of replacing at the original price, so make sure how you are covered.

5. What are the limitations on valuables, like jewellery, silverware, and computers?

   As noted earlier, you have to be cautious about the type of coverage, however, you also have to be aware of the maximum amount of coverage. It would not be good to find out that your $7,500 camera is not covered on your insurance!
   
   

6. What does my policy cover me for in terms of water damage?

   Depending on where you live, this may or may not be an issue. BUT, suppose you live in the area of Milton that is within the ’100-year Flood Plain’, will your insurance cover that? Do you even know if you live within that part of town? It’s not an obvious area, and it’s much larger than you might think – call me for more details.

7. What optional coverages should I consider?

   The sky’s the limit when it comes to this category; just make sure that any coverage suggested is clearly explained to you.
   

8. What is my deductible? How much money can I save on my premium by choosing a higher deductible?
   
   Typically, the answer is yes, but that’s not always the case.
9. What safety features can I install that will help me save money and increase my protection?

   For example, if I install an alarm system, will my policy costs go down? Does it matter if the alarm is monitored? What about sprinkler systems – do they lower my premiums?

10. Does the company offer 24-hour claims service?

    Who do I call in case of a claim?

When you have a claim . . .

1. Am I covered? For how much? (If not, why not? Show me where in the policy it explains that.)
2. Is there a deductible? How much?
3. Can I get assistance right now to make temporary repairs? How do I go about arranging the repairs?
4. What do I need to do to file my claim as soon as possible?
5. How long will it take to settle my claim?

Getting the right insurance policy for you is critical. Your mortgage lender requires you to have insurance, and you will be required to provide proof of insurance prior to the mortgage being funded.

Don’t be shy, and don’t assume you know the answers – ask your insurance agent. I personally recommend Heather Solie of State Farm at 905-693-1400!!