Compare In a column last month I took some lighthear:- ed shots at the big banks for, among other things, pushing people into taking ionger- term, higher-rate mort- gages. Since then I've kept my head down because Pm not at all sure that banks have a sense of humour. But so far so good — my banks haven't cut off my credit or to: . closed on my mortgage (1 deal with three difterent banks — oue for my fine-of- credit, one for my visa card and one for my mortgage. That way nobody knows how much money I really owe.). Actually | have nothing against the banks and I really hope they have nothing against me because they are incredibly powerful institu- tions. This of course is not necessarily a bad thing, In fact I think that one of the big pluses that the Canadian economy has going for it is a strong, stable financial sector. Furthermore, the banks have become more competitive in recent years giving deals on mortgage rates, offering more types and options for accounts and so on. But let's face it they are very big and they have well-trained, spe- cialized staff. ‘This is probably a good thing but it means that the individual borrower can be at a disadvantage in dealing with the big banks in terms of knowledge and expertise. That is why it is important to be well informed and well prepared in your negotiations with them. Once of the products that the banks or trust companies will try to sell you is fite insurance on your Mortgage. Now just because you have taken out a mortgage, it doesn’t necessarily follow chat economics you need more life insurance. True. with your mortgage you have a new, large Hability but you also have an offset- ting asset in the form of your new home. So in effect your personal balance sheet really hasn't changed and it can be argued that if you had enough life insurance betore you probably have enough now, On the other hand if your monthly payments are a lot higher than chey were before, you may want to get more insurance coverage. Certainly if something happens to you, you don’t want your family to lose their home. So vou have to carefully size up your financial situation and the earning capabilities of your survivors to assess your insur- ance needs, Let’s suppose vou decide that you are a lice light on lite insurance or vou would just feel better if vou had your mortgage insured in case something happens to you. Well. as U said, your bank will be happy to provide life insurance coverage on your mortgage. Premiums are based on your age and are quoted on the basis of a thousand dollars of insurance coverage. For one bank that I looked at, premiunis ranged from 8 cents for someone under 30 years of age to 97 cents for someone in the 61 - 64 age bracket. The banks also offer joint coverage which covers both owners of a home. the premiums for this ranged from 1} cents ta $1.36 per thousand dollars of NEWS photos Paut McGrath = at werdge. Iris quite possible that vour bank's mortgage insur ance may not be the least expensive way to get life insurance caverage. Tr could cost you less to purchase term insurance through a fite insurance company, particu- larly if you can get a good rate through vour work or though some other protes- sional or personal associations you have. So befere you take the bank’s insurance, check around aad conipare rites, Wher veo are doing the comparison, remember that the bank’s insurance only covers the outstanding bal- ance on the mortgage. Therefore, in effeer, it isa decreasing-term policy. On the other hand a term insur- ance policy pays a given, con- stant benefit, unless you specifically purchase decreas- ing term insurance. This, by the way, is an interesting option to consider as you may feel that you will nesd Friday. June 18, 1999 - iNorth Snore News - 59 less coverage as vou get older. Another possible draw: back to Mure your mort: gage through vour morizage lender is thar if vou change mortgage companies vou May Jose your coverage and you would have toe reapply for insurance with your new lender. This could be a prob- lem if you have developed health problems. Or even if you haven’r, your premiums would probably go up because vou are older, Also, remember that with the msurance rates on morigages bank's insurance, vour cover: age ends when the mortgage is paid off. This is probably okay, bur at least with the term insurance you have con- trobas to when the insurance is terminated. One interesting twist is that the banks” premiums don’t generally discriminate against smokers. Furthermore, while you may have to fill outa brief basic medical questionnaire, See Bank page 70 Renovati ns on parade NEWS photo Brad Ledwiige JOEL McKartney and Linda Ashcroft of API Construction showed off the company’s renovatians to a North Van home during the The Greater Vancouver Home Builders’ Association Parade of Renovated Homes on Sunday. of LANCE ... aves 455 Westholme Read Con redcovesereecesesnese wevoreveerecee LOT SIZE: 150° x 12960 sq. ft. x eet eeesen INTERIOR SIZE; 2978 sq. #. Eevee eee renccenacaneenee IMBER OF BEDROOMS: 4 Pere meee seer a eemer eee eeeseHrreeeweseuesnes NUMBER OF FLOORS: 2 Seve wwreveresreccesoee Oe erer er rrrrerrsy ASKING PRICE: $539,000 POON eer e wer taser oenesscseesseeasvesceceees OPEN HOUSE: Sunday 2-4pm Code rem e rere ce ene sre oeueHieasreseeneueses LISTING AGENT: Alan Skinner, 988-7368 SECO Re Mme ore ne steno eneesesssereneresenese SPECIAL FEATURES: Intelligent design, gight-person hot tub. Walk to West Bay Elementary This is a family home with a superior layout. !t cries out to be used to host parties, large or small and intimate. From the sunken living room, with its vaulted ceilings and floor to ceiling stone fireplace to the family room off the spacious eating area and well apportioned kitchen, the home exudes a definite charm. The overail feeling is best described as “privacy with pizzazz.” There is good nanny accommodation dows plus a large play/recreation room ... and we haven't even talked about the indoor eight-person hot tub! Don't miss this Sunday's open! Skinner ReMax Crest Realty a SRE ALE RE ST LA I a TT AT SY