Your
First Home
Author:
Maritime Life
You put in the offer and received the congratulatory call from your real
estate agent. Now what?
Shelter
is one of life's basic necessities. Like most, you’ll probably start
off renting. But eventually, the question of whether or not to buy comes
up. Having answered a resounding ‘yes,’ you're now faced with many
questions and even more costs: the house, the lawyers, and the moving expenses,
just to name three.
Taking
on a mortgage is a serious financial commitment, one that leaves many new
homeowners feeling nervous. What if something goes wrong? How will you cope
with this huge responsibility?
One
way to minimize your stress is to consider buying insurance to cover the
mortgage principal. That way, if the worst happened, your family could at
least keep the roof over its head. And by purchasing the insurance personally––as
opposed to taking the mortgage insurance option offered by the bank or mortgage
company––that money would be placed directly into your family's
hands. A personal insurance policy will also offer more flexibility and features
that you can use to plan for your future needs.
While
you're at it, talk to a financial advisor about disability insurance. You
may not think disability protection is necessary, but what if you were unable
to work due to a disability? How would you pay your mortgage or other housing
expenses? The statistics are slightly alarming: approximately one in seven
Canadians become disabled at some point in their lives. You'll sleep better
at night knowing that if a disability should strike, you’ll have an
income replacement plan in place.
Once
you become a proud homeowner, don't forget about your other investments.
It's easy to focus on today's never-ending renovation and property costs
and overlook tomorrow's financial needs. Keep making regular contributions
to your RRSP. You can always use your refund to help pay down your mortgage
faster. Enjoying a home of your own and planning for the future are within
your reach.
To help sort through your options, consider the advice of a professional
advisor. Independent financial advisors have the skills to help you assess
your situation and create the life insurance policy that’s best for
you.
-
Maritime Life
