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CHORECHECKLISTHomemaintenancemadeeasyWHENDISASTERSTRIKESSCOTTMCGILLIVRAYOnbuyinghisrsthomeOnefamilystaleofrecoveryFALL2O13 HomebuyerPrivilegesisyourexclusiveonlineprogramforsavingsanddiscountsGenworthCanadahasteamedupwithmajornationalsupplierstogivehomebuyersaccesstovaluablesavingsonhome-relatedproductsandservices.AskyourlenderhowyoucangetyourHomebuyerPrivileges.Visitgenworth.catolearnmore.2013GenworthMICanadaInc. GRAPHICPARISGREENCREATIVE.COMCOVERPHOTOGETTYIMAGES4THEEDGE6OLDORNEW9INTEREST-SAVINGSOLUTIONS10GOODDEBTVS.BADDEBT12LAWORDER14DIGITALDIALOGUE16HELPFORTHESELF-EMPLOYED18CHORECHECKLIST20WHENDISASTERSTRIKES22LESSONSFROMMYFIRSTHOMEWELCOMETOFALLAstheleavesturnthetemperaturedipsandkidsheadbacktoschoolyoumaybethinkingaboutthepossibilityofinvestinginyourownhome.Yourecertainlynotalone.HomeownershipisanimportantgoalformanyCanadiansandaccordingtothemostrecentdatafromStatisticsCanadaowningahomecanbeapredictoroffuturefinancialhealth.ThisnewestissueofABetterWaytoHomeownershipwillgiveyouthetoolsyouneedtomakeyourhomeownershipdreamareality.Onpage16weofferself-employedhomebuyerstipsonhowtosecureamortgageevenwhenprovingincometoapotentiallendermaybechallenging.Whetheryoureself-employedoranemployeemortgagepaymentsareafactoflifeformosthomeowners.Onpage9youllndexpertadviceonhowtosaveoninterestthroughoutthelifeofyourmortgagewhichcanhelpyoubecomedebt-freesooner.Onceyouvepurchasedthatdreamhomeitsimportanttoknowwheretoturnifanunexpectedlifesituationmakesitdifculttoaffordyourmortgagepayments.Onpage20wesharehowourteamatGenworthCanadahelpedayoungfamilycopewithahomebuyersworstnancialnightmare.Onpage22renovationandrealestateinvestmentguruScottMcGillivrayhostofHGTVsIncomePropertytalksabouthisrstforayintohomeownership.Weespeciallyenjoyedhistipsonpurchasinganinvestmentproperty.AsalwayswerecontinuingtheconversationonlineonourHomeownershipblogFacebookpageandnewLinkedIngroup.Stopbyandshareyourstoriestipsandquestionsabouthomeownership.DebbieMcPhersonSeniorVice-PresidentSalesMarketingGenworthCanadaGENWORTHCANADAFALL2O133FROMTHEEDITORCHECKOUTGENWORTH.CAEDITORJenniferGoldbergARTDIRECTORSusanMeingastFREELANCECONTRIBUTORSDanBlackwellBryanBorzykowskiAmirahEl-SaftyLisaFieldingJaclynTersigniBrendaThompsongtaeeageamatitsamycopwarlestavesmeinxmortowourghndreogroresonversatononloopagensareyomershionuinheipblogosnoforyintohetipsopurchanoputwerhip.any.ngtacos3 NEWSVIEWS4GENWORTHCANADAFALL2O13THEEDGECHECKOUTGENWORTH.CAGoodnewsforrst-timehomebuyersagrowingnumberofCanadiansarendingiteasiertosaveforadownpayment.AccordingtoGenworthCanadas2013HomeownershipsurveydoneinconjunctionwiththeCanadianAssociationofCreditCounsellingServicesmorethanhalfofrst-timehomebuyersquestionedputdownmorethan20percenttowardthecostofanewhome.Theannualsurveywhichpolledmorethan1500Canadiansabouttheirnancialknowledgeandpreparednessalsorevealsthenumberofrst-timehomeownerswhonditeasytosavemoneyrosebyvepercentcomparedto2012results.Thisimprovedsavingknow-howbodeswellforthehousingmarketbutwerestilllaggingwhenitcomestoourunderstandingofcreditthesurveyfoundthatmorethan40percentofparticipantseitherdidntthinktheircreditscorewasimportantordidntknowtheircreditscore.Formoreinformationonhowtoimproveyournancialtnessvisitgenworth.ca.YOURTOTALHOUSINGCOSTSINCLUDINGMORTGAGEPRINCIPALANDINTERESTPAYMENTSHEATINGANDPROPERTYTAXESSHOULDNOTEXCEED32PERCENTOFYOURGROSSMONTHLYINCOME.SOURCECANADIANHOUSINGREPORTtohelpyouachievehomeownershipSAVINGSAVVY32MDIDYOUKNOW Whatsaffordablemightnotnecessarilybepractical.Incomequalicationsforamortgagedonttakeintoaccountdaycareorotherlivingexpensessoyouwanttomakesureyouconsiderthosethingswhendecidingonthemortgageyoucanafford.TracyIrwinOakvilleOnt.-basedindependentmortgageprofessionalWHATTHEPROKNOWSGetwiththeProgramThinkingaboutbuyingahomeMortgagedefaultinsurancemaymakeitpossibleforyoutoachieveyourdreamofhomeownershipmuchsooner.GenworthCanadaoffersseveralprogramsthatcanhelpmakehomeownershipmoreaccessible.PROGRAMHomebuyer95WHATITDOESGiveshomebuyerstheopportunitytopurchaseapropertywithaslittleasvepercentdown.Theprogramofferscompetitiveinterestratesandletsborrowerschooseaxedvariableoradjustableratemortgage.PROGRAMEnergy-EfcientHousingWHATITDOESOfferssavingstoGenworth-insuredmortgageholderswhentheyrenovatetheirhometoenergy-efcientstandards.Potentialbenetsinclude10percentsavingsonmortgageinsurancepremiumandenhancedqualifyingbasedonenergy-efcientheatingcosts.PROGRAMNewtoCanadaWHATITDOESMakesitpossiblefornewcomerstoCanadatosecureamortgagewithaslittleasvepercentdownsotheycanstartbuildingequitysooner.Theprogramisavailableforupto60monthsafterarrivalinCanada.PROGRAMPurchasePlusImprovementsWHATITDOESAllowshomebuyerstorenovatetheirnewpropertyimmediatelyaftertakingpossessionwithaccesstouptofourlenderadvancesontheirmortgage.PHOTOMARTAHEWSONMARTAHEWSON.COM 6GENWORTHCANADAFALL2O13Whenitcomestochoosingapropertyhomebuyersfacemanychoiceslocationhousingstyleinteriorlayoutandnumberofbedroomsandbathrooms.Allcomeintoplaywhenchoosingtheperfectplacetolive.Amongthemostimportantdecisionswhethertobuyaneworresalehome.AccordingtoJohnOborneownerofOborneContractingInc.inThornhillOnt.thereareprosandconstoboth.Whatyouchoosedependsonyourneedslifestyleandbudget.TohelppotentialbuyersdecideonwhathomesuitsthembestOborneoffersthefollowingconsiderations.WhatyouchoosedependsonyourneedslifestyleandbudgetOldorNewWhatsRightforYouBYJACLYNTERSIGNINEWBUILDSthescooponForhomebuyerswhowanttoavoidthecostsandresponsibilitiesofrenovatingandmaintaininganolderpropertyanewbuildmightbetheanswer.AbrandnewpropertyisablankslatethatbuyerscantrulymaketheirownsaysOborne.Whenyourebuyinganewhomeyoumaybeabletochoosethelayoutandworkonthedesignpriortoconstruction.Youmayalsohavetheopportunitytocustomizenishingfeaturessuchasooringcabinetryandcountertops.Plusthereslesschanceyoullhavetopayforsignicantrepairsorrenovationsintherstfewyearsyouownthehome.Somenewbuildsalsohavewarrantiesthatprotectagainst Forabuyerinterestedinuniquestyleandclassicdesignanolderhomeisthewaytogo.GenerallypeoplearebuyingolderhomesbecauseofthearchitectureObornesays.Theexteriorprovidesthecharacterofanolderhomewhichalotofpeoplelikeandallowsyoutodointeriorworksuchasincorporatingcontemporarystyles.Outdoorspaceisanotherattractivefeatureofbuyingresale.Youregettingalotofgreenerywithanolderhomeyouvealreadygotlandscapingestablished.WithanewhomeyoudontOsbornepointsout.Livinginanolderneighbourhoodwithparkingpavedroadsandnearbyamenitiesmayalsobeimportanttosomehomebuyersaspurchasinganewbuildmaymeanputtingupwithmonthsorevenyearsofconstructioninyourcommunity.Howevertakingadvantageofaresalehomesperksmaycomewithhighmaintenanceandrenovationcosts.ThereareissueswitholderhomesObornewarns.Thiscouldbeanythingtodowithupdatingthehousedealingwithanolderrooforolderinfrastructureofthehomesuchasplumbingelectricalandwaterproong.Olderhomesalsotendtobealotlessenergyefcientthannewbuilds.Buyersmaywanttofactorinthecostsofreplacingwindowsanddoorstoimproveefciency.Obornerecommendsbuyersgetanindependenthomeinspectionthatcanrevealpotentialissues.Healsosuggestshiringareputablecontractortojoinyouwhenviewingaresaleproperty.Thecontractorstimewillneedtobepaidforbuttherightpersoncanprovideyouwithvaluableinformationabouttheintegrityofthehomehesays.GENWORTHCANADAFALL2O137RESALEdefectsandabuilderwillsometimesprovideanadditionalwarrantyontopofthatObornenotes.Butpurchasinganewbuildalsohasitscons.Ifyoupreferanurbanlifestyleitmaybetoughtondnewbuildsinestablisheddowntowncommunities.Homebuyersshouldalsobepreparedforthepossibilityofongoingconstructionandthenoisedustandunpavedroadsthatcomewithit.IfyoureinthemarketforanewlybuiltpropertycarefullyresearchthenancialstrengthandreputationofthebuilderbylookingintoitshistoryratingwiththeBetterBusinessBureauthenumberofhomesitproduceseachyearanditsmembershipwithhomebuildersassociationsOsborneadvises.thescooponPHOTOSISTOCKPHOTO.COMPROSCONSCHECKOUTGENWORTH.CAF NUMBERICONSPARISGREENCREATIVE.COMINTEREST-SAVINGSOLUTIONSUnlessyoupurchaseyourhomewithcashyoullneedtobudgetformortgagepayments.TipsonmakingthemlesspainfulBYBRYANBORZYKOWSKIWendyPerryamortgageprofessionalatSaskatoon-basedDominionLendingCentresNorthStarMortgagesrecommendsthefollowingfourmortgage-interestmanoeuvres.SHOPAROUNDBeforebuyingahometakethetimetosearchforthebestinterestrate.Itspossibletodothisyourselfbytalkingtobanksabouttheratescompetitorsareofferingoritmaybeeasiertogothroughamortgageprofessionalwhohasaccesstolendersacrossthecountry.Themorenancialinstitutionscompeteforyourbusinessthebetterrateyourelikelytoget.ForexamplePerrywhohasaccesstomorethan90lendershasbeenabletondherclientsratesbetween0.5andonepercentbelowpostedbankrates.IMPROVEYOURCREDITSCOREThehigheryourcreditscorethebetteryourmortgageinterestratemaybesuggestsPerry.Astellarscorecanoftencutaratebyasmuchasonepercentandwillalsoallowyoutoaccessmorelenders.ManylendersarentinterestedinpeoplewithverylowscoresbecauseitstoomuchriskPerrywarns.Improveyourscorebyregularlypayingyourbillsontimeandusinglessthan50percentofyourtotalavailablecredit.Visitgenworth.catolearnthemythsandtruthsaboutwhataffectsyourcreditrating.ACCELERATEPAYMENTSWevebeentrainedtomakemortgagepaymentsonceamonthsaysPerrybutthereareotheroptions.Youcanreducetotalinterestsignicantlyifyoupaybi-weeklyorweekly.Theactualpaymentwillbeaboutthesamebutyoullallowlesstimeforinteresttoaccumulate.Forexampleifyouhavea300000mortgageatathreepercentxedratewithamonthlypaymentscheduleyoullpaymorethan125000ininterestover25years.Ifyouchooseanacceleratedbi-weeklyplanwhereyoupayeverytwoweeksyoullpaylessthan110000ininterestandyoulleliminateyourmortgageinabitmorethan22years.PAYALUMPSUMThisoptionmaybetrickyformanyhomeownersbutmostlendersallowyoutopayayearlylumpsumofupto20percentoftheoriginalloan.Thatmightseemaheftynumberbutanyextraamountyoucanputtowardsyourmortgagewillhelpbecausetheentirepaymentgoesdirectlytotheprincipal.Takethatsame300000mortgageyoupayoffonamonthlybasis.Ifyouputanextra5000towarditeveryyearyoullsavemorethan42000ininterestcostsandpayoffyourmortgagesevenyearsearlier.Increasethatto10000ayearandyour25-yearmortgagewillbepaidoffinjust13years.GENWORTHCANADAFALL2O139BUDGETINGCHECKOUTGENWORTH.CAF PHOTOSGETTYIMAGESDEBTvs.goodbadHOMEOWNERSSHOULDUNDERSTANDTHEDIFFERENCEBYBRYANBORZYKOWSKI1OGENWORTHCANADAFALL2O13 AccordingtoStatisticsCanadatheaverageCanadianhouseholdowesabout115000.Whilelivingdebt-freeisadesirablegoalmanypeopledontrealizethereisadifferencebetweenwhatiscommonlyknownasgooddebtandbaddebt.SNAPSHOTBADDEBTStephanieHolmes-WintonanancialservicestrainerplannerbasedinDartmouthN.S.andauthorofDefusingtheDebtBombandpentdescribesbaddebtasmoneyowingthatsnottaxdeductibleandyoucantmakemoneyfrominthefuture.Itemsyoupurchasedusingacreditcardareoneexample.Yourepayinghighinterestonmoneyyouveborrowedtobuyconsumablesshepointsout.Goodluckreturningamealyouvepaidforoncredit.Whatmakesconsumerdebtevenworseisthatalotofcreditcardschargearound20percentinterest.Thatsalottopayforsomethingofferingnonancialreturn.Autoloanpaymentsarealsoconsideredbaddebtbecausewhileyoucangetsomemoneybackwhenyousellavehicleyoullreceivealotlessthanwhatyoupaidforit.Youpay20000foracarandthenextdayitsworth15000Holmes-Wintonsays.SNAPSHOTGOODDEBTBorrowingmoneytobuysomethingthatoffersanancialreturncanbeviewedasgooddebt.Manyexpertssayamortgageisgooddebtbecausewhenyousellyourhomethepriceyougetmaybehigherthanwhatyoupaidtobuyit.Mortgagedebtallowsyoutopurchasesomethingthatwillactuallymakeyoumoney.ForthesamereasonHolmes-WintonexplainsborrowingmoneytoinvestinanRRSPisconsideredgooddebt.Youllneedtopaytheloanbackfairlyquicklybutborrowingtoinvestandgetahighertaxrefundisasoundnancialstrategy.Gooddebtisthekindofdebtthatgetsusaheadshesays.BANISHTHEBADFIRSTWhencreatinganancialplanalwaysaimtopayoffyourbaddebtrstHolmes-Wintonadvises.Mortgageinterestistypicallymuchlowerthancreditcardinterestandwhileyoureworkingatpayingoffyourzero-benetconsumerdebtintheoryyourhouseshouldberisinginvalue.UNDERSTANDTHEHIERARCHYThereisahierarchyofdebtthatshouldbepaidoffinordersaysHolmes-Winton.Paymentprioritywillvarydependingonyournancialsituationbutitsimportanttokeepupwithregularpaymentsonallofyourdebts.Firstallocateextrafundstoeliminatecreditcarddebtthentackleyourcarloanfollowedbyyourstudentloanwhichcanbeconsideredgooddebtbecauseofthereturnyoullgetonyoureducation.ThenfocusonpayingdownyourmortgageorRRSPloanandnallyaloanonanincome-generatingproperty.DONTTAKEONMOREThegood-versus-bad-debtdebateismootifyoucontinuetoborrowmoney.Repeatedlymaxingoutyourcreditcardsmeansyoullalwaysbepayingthemoff.Likewiseborrowingagainstyourhometobuysayanewboatsuddenlyshiftsmortgagedebtfromgoodtobad.Aswelljustbecausesomethingsagooddebtdoesntmeanyoucanignoreit.WhatoftenhappensisthatpeoplethinkSinceIhavetohaveamortgageanditsatalowerratethanmycreditcardIdonthavetopayattentiontoitsaysHolmes-Winton.Alldebtsstillneedtobepaidoff.GENWORTHCANADAFALL2O1311DEBTMANAGEMENTCHECKOUTGENWORTH.CAF Mostrst-timehomebuyersconsideraREALTORandmortgageprofessionaltobeintegraltotheirhomebuyingexperiencebutarealestatelawyerisalsoanimportantmemberoftheteam.RealestatelawyerspulleverythingtogetherafteranofferhasbeenacceptedandmakethehomepurchasehappenexplainsLolaDoucetarealestatelawyerinBedfordN.S.Wereviewdocumentsensurethepropertyismarketableandsolveanyissueswiththeagreement.Thinkofrealestatelawyersasthecoordinatorsofthehomebuyingprocess.Theyreviewinformationpertainingtothepurchaseandmortgageandhandlesuchthingsastitleinsuranceandlandtransfertax.Theyalsoconrmthatpaperworkisledtransactionsareprocessedandpaymentsaremade.DoucetaformerboardmemberoftheRealEstateLawyersAssociationofNovaScotiarecommendsrst-timebuyersconnectwithalawyerbeforebeginningthehouse-huntingprocess.Bookinga30-minutemeetingwillgiveyouthechancetodiscusswhattoexpectafterapurchaseofferisacceptedandclarifyhowmuchtimeitwilltakeuntilyoucancallthehomeyourown.HomebuyersoftenassumetheyllbeabletomovetheirstuffintoanewhousebeforetheyveactuallyclosedonitsaysDoucet.Theythinkthingsworkatlightspeedbutinsomewaysbuyingahouseisaveryold-schoolprocess.Forexampleacourierisrequiredtophysicallytakechequesfromthebuyerslawyertothesellerslawyernoinstante-moneytransfershere.Onceaselleracceptsyourofferyoullneedtocontactyourlawyerrightawaysoheorshecanbeginperformingthenecessaryprofessionalobligationsandduediligence.Theprocessincludescarryingoutatitlesearchtoensurethebuyerwillhavelegitimatetitletothepurchasedpropertyandmakingsuretherearenoeasementstherightforanotherpersonorpartytocrossoruseapartofthelandorlienslegalclaimsonapieceofrealestatethatgranttheholderasetamountofmoneywhenitissoldagainsttheproperty.Thelawyerwillalsopreparethetransferofpropertytitlefromthesellertothenewownerdeterminetheamountoflandtransfertaxowedandmakesurethatyouthebuyerhavemetallthelegalandnancialconditions.Finallyyourlawyerwillreceivethekeystoyournewhome.Doucetsaysitsherjobtorepresentherclientsbestinterestsinthecomplexprocessofpurchasingahome.REALTORSwillknowonecomponentoftheprocessmortgageprofessionalswillknowthecomponentdealingwithnancesbutlawyersneedtobeabletoexplainallthecomponentssheadds.Ineedtoknowwhateveryoneisdoingandbeabletoexplaintotheclientwhatishappening.LAWORDERArealestatelawyerisakeymemberofyourhomebuyingteamBYJACLYNTERSIGNILOLADOUCETREALESTATELAWYERBEDFORDN.S.12GENWORTHCANADAFALL2O13LEGALLYSPEAKINGCHECKOUTGENWORTH.CAF DIGITALDIALOGUEConnectwithouronlinecommunitytogettipsonhomeownershipwatchinformativevideosandchatwithotherhomeownersonoursocialnetworksBYJENNIFERGOLDBERGREADTheHomeownershipblogHowcanyouimproveyourhomescurbappealShouldyourenovateormoveFindtheanswerstotheseandotherqueriesonourHomeownershipblogwherewesharetipsandsparkdiscussionabouttheinsandoutsofowningyourownhome.CHATGenworthonFacebookParticipateintheconversationonourFacebookpagewhereyoullndcontestsSmartShoppertipsandusefulinformationonhomeownership.PLAYWINHousetoHomePlaytheGenworthCanadaHousetoHomeFacebookgametofurnishyourveryownvirtualdreamhome.Periodicallyplayerscanenterforachancetowinweekly100HBCgiftcardsandonegrandprizeof1000.SHARETheMeaningofHomeEncouragealltheGrade45and6studentsyouknowtotelluswhathomemeanstothembyenteringourMeaningofHomecontest.Theauthorofthewinningessaywillallocatea60000grantfromGenworthCanadatotheHabitatforHumanitybuildoftheirchoice.AmongthisyearsjudgesisScottMcGillivrayhostofHGTVsIncomeProperty.Formoredetailsvisitmeaningofhome.ca.FOLLOWGenworthonLinkedInConnectwithGenworthCanadaonLinkedIntojoinhomebuyersmortgageprofessionalsandREALTORSindiscussionsonawiderangeoftopicsrelatingtohomeownership.14GENWORTHCANADAFALL2O13WHATSONLINECHECKOUTGENWORTH.CAWATCHHousevs.CondoShouldyoubuyahouseoracondoSeetopTorontoREALTORBrianElderexplaintheprosandconsofeachtypeofhome. GenworthCanadawantstoreducethestressofmovingonyouandtheEarth.ThatswhywevepartneredwithFROGBOXtomakeyourmoveeasy.OrderonlineatFROGBOX.comGenworthGenworthCustomersGet15OffGenworthCustomersGet15OffYoullneedboxesMovingorcallusat1-877-FROGBOX1-877-376-4269 PHOTOSGETTYIMAGES.TIPGRAPHICPARISGREENCREATIVE.COMIfyouareamongthe15percentofCanadianswhoareself-employedyoumightthinkhomeownershipisoutofreach.NotsosaysPaulineTonkinanindependentmortgageprofessionalinCoquitlamB.C.Therearemortgageprogramstailor-madeforself-employedhomebuyers.Tonkinoffershertipsforsecuringamortgageifyouareyourownboss.EMBRACEHOMEOWNERSHIPBusinessownersandentrepreneursinparticularbenetfromhomeownershipbecauseitdiversiestheirinvestments.Self-employedprofessionalstendtosinktoomuchoftheirmoneyintotheirbusinessandnothingelsewhichcanbeanancialmisstepsaysTinaTehranchianamemberoftheFinancialAdvisorsAssociationofCanada.Buyingapieceofrealestatewheretheyrebuildingupequityisonemeasureofdiversifyingtheirportfolio.WEIGHYOUROPTIONSYourmainhurdletosecuringamortgageisprovingyourincometoapotentiallender.Thechallengeforself-employedpeoplecomeswithshowingasteadyandsufficientstreamofincomeforasustainedperiodoftime.IfthatsascenarioyoufindyourselfinTonkinsuggestsoneoftwooptionsmakealargerdownpaymentmorethan30percentorconsidermortgagedefaultinsuranceproductsforself-employedindividualswhoputdownlessthana20percentdownpayment.KEEPRECORDSIfyoureself-employedanddonothavetherequireddocumentationtoqualifyfortraditionalmortgageinsuranceyoucanapplyundertheAlt-Aorstatedincomeprogram.UnderthisprogramTHINKYOURENOTELIGIBLEFORAMORTGAGETHINKAGAINHelpfortheSelf-employedBYLISAFIELDING16GENWORTHCANADAFALL2O13ENTREPRENEURSCHECKOUTGENWORTH.CA Tolearnmoreaboutmortgagesforself-employedhomebuyerscheckoutthesewebsitesfcac-acfc.gc.caTheFinancialConsumerAgencyofCanadassiteoffersinformationoncheckingyourcreditscorequalifyingforamortgageandmore.Mymoneycoach.caasitebytheCreditCounsellingSocietyfeaturestipsonbudgetingforanewhouseandshoppingaroundforamortgage.Genworth.caprovidesaquickchecklistofrequirementsfortheBusinessForSelfprogram.thelenderlooksatdocumentationotherthantaxreturnsorpaystubs.Insteadyoulljusthavetoprovethatyouhavebeeninbusinesswithasteadyincomeandagoodcreditscoreforatleasttwoyears.TodothisyoumayneedproofsuchasabusinesslicenseGSTHSTreturnbusinessbankaccountfinancialstatementsorincorporationdocumentsaswellastaxreturnsandyourmostrecentNoticeofAssessment.Compilecomprehensiverecordsofallofyourincomeandexpensestooespeciallyifyourbusinessiscash-basedreceiptsfromconsistentcustomersorsuppliersshowingbusinessequipmentpurchasescanhelpgiveyourlenderatruepictureofyourfinancialsituation.PLANAHEADIfyouwanttopurchaseahomeinthenearfuturekeepthegoalinmindwhenfilingyourtaxes.IadviseclientstoplanaheadbyfilingaccurateincometaxreturmsthatcanbeusedtoqualifyforamortgagesaysTonkin.ItsalsoimportanttocreateabudgetthatincludesasavingsfundforunexpectedcostssuchasemergencyrepairsTonkinadvises.Ialwayssuggestthatprospectivehomebuyersstartbydepositingfundsequaltomortgagepaymentsintoasavingsaccounttogetusedtoitbeforetheybuyahomekindoflikeatestdrive.DOYOURHOMEWORKMeetwithamortgageprofessionalbeforebeginningyourhomesearchthemoreheorsheknowsaboutyourbusinessthemorehelpyoullget.Tightermortgagerulesrequirelenderstobeevenmorecautiousinreviewingdocumentation.ItsimportantformortgageprofessionalstoknowtheirclientssaysTonkinandbeabletoconrmtheirbusinessincome.GENWORTHCANADAFALL2O1317F PHOTOSISTOCKPHOTO.COMGregColehasseenitalltoooften.WejustrepairedthewholewallofahomeontheoceanbecauseofafailureintheashingsaroundthewindowanddooropeningsthatrottedtheentirethreestoriessaystheHalifaxcontractorandownerofrenovationcompanyColebuilt.Itcostthehomeowners35000.TherootcauseOwnernegligence.Itsbesttodoyourhomemaintenanceinthefallsoyouwonthavetofaceapriceyx-itjobinthewintersuggestsCole.Constructionmaterialsoftendontrespondwelltocoldweatherwhichmakesreplacingwindowsdoorsandsidingmuchmoreexpensive.CHOREWINTERSARETOUGHONHOUSESGIVEYOURSTHECAREITDESERVESTHISFALLTOKEEPITHEALTHYALLYEARLONGBYDANBLACKWELLchecklistSeptemberWHATExaminepipesWHYIfyouvenevercheckedoutyourpipesnowisanidealtimetomakecertaintheyarentexposedtopressureexcessivemoistureandheatlossduringthewinter.Inolderhomespipestransitionbetweenhotandcoldzonesinthewallsandooringandimpropermaintenanceanddegradedmaterialsmakethemparticularlysusceptibletobursts.Spot-checktobesureyourpipesareonthewarmsideofyourhomesvapourbarrierbetweenthedrywallandtheplasticlmlayeredovertheinstallation.Ifyoureunsureconsultageneralcontractororhomeinspectorbeforetherstfreeze.Alsoconsiderreplacingexteriortapswithfrost-freefaucetsifyouliveinanextremelycoldclimate.18GENWORTHCANADAFALL2O13HOMEMAINTENANCECHECKOUTGENWORTH.CA OctoberWHATInspectdrivewayWHYIceandwatercanaccumulateincracksinyourdrivewaytoformpatchesoficethatcanerodeyourpavement.Fillawswithanepoxy-basedmaterialletithardenandthenapplyasealant.Ifyouhaveagraveldrivewaybesuretorakeoffexcessgraveltocreatealevelandcleansurfaceforsnowshoveling.WHATMaintainexteriorcaulkingWHYCaulkingneedstobecleanedorreplacedtopreventwater-seepageandrot.Removedirtandgrimethenspraywindowanddoorcaulkingwithagardenhosetocheckforleaks.Remembertostripandremoveoldcaulkingbeforeapplyingnewlayers.WHATCleanchimneyWHYColerecommendshavingyourchimneyregularlyinspectedandsweptbyaprofessionaltoensureitiscleansafeandunobstructedbywildlifeordebris.Youllalsowanttoremoveanycreosotewhichisacombustiblesubstancethatbuildsupoveryearsofenjoyingcozyres.WHATCleanfurnacelterWHYColeadviseshomeownerstovacuumtheheatingsystemsairltertwiceayearparticularlyinthefallandspringsothefurnacerunsefcientlyandcirculatescleancontaminant-freeair.WHATFlushguttersanddownspoutsWHYToallowrainwaterandmeltingsnowtoowfreelyclearyourguttersofleavesandotherdebristhenhosethemout.Ensurejointsandcornerswheredownspoutstieintoguttersaresealedproperlyandnotleaking.Checkthatyourguttersaresecuredtotheexteriortopreventicebuildup.WHATCheckwindowsandweatherstrippingWHYTopreventheatlossensurelocksdrawthewindowtightlyintotheweatherstripping.Checkwindowsfordraftsandconsiderreplacingolderweatherstrippingifitsbecomestiffovertime.GENWORTHCANADAFALL2O1319F SerenaandStephenCritchtooktherightstepswhentheyboughttheirhomelastyearinArdmoreasmallhamletinnorthernAlberta.Theydsecuredanaffordablemortgagewiththeirbankandmadesuretheywerereadytotakeonthechallengeofhomeownership.WehadthepropertyinspectedanddideverythingweweretoldtodobeforewetookpossessionsaysSerenaamomoffourandanightsupervisorataseniorshome.ButtheCritcheswerentpreparedforwhattheyfoundwhentheyattemptedtorepairatwistedoorjoistintheirsonsbedroomjustafewdaysaftertheyweregiventhekeys.StevepulledbackallthelaminateooringandhefellthroughtheoorSerenarecalls.Itwascompletelyrottedout.HopingtheproblemwasconnedtooneroomthecouplesenttheiryoungboystoSerenasparentsforasleepoverandspenttheirrstnightalonetogetherintheirnewhome.ThenextmorningSerenawhosuffersfromasthmawokeupcoveredinhivesandstrugglingtobreathe.Whentheypulleduptherestofthehomeslaminateooringtoinvestigatefurthertheydiscoveredblackmouldcovered12000squarefeetoftheirhouse.Theoorwasjustblackandtherewasmouldgrowingupthedrywallbehindthekitchencabinetsinthediningroom.TherewereseveralplaceswheretheoorWhenDisasterStrikes2OGENWORTHCANADAFALL2O13AnAlbertafamilycouldntwaittomoveintotheirdreamhome.TwodaysaftertakingpossessionthedreamturnedintoanightmareBYJENNIFERGOLDBERGGETTYIMAGESRELIEFEFFORTCHECKOUTGENWORTH.CA hadcompletelyrottedthroughSerenadescribes.AccordingtoHealthCanadaexposuretoblackmouldcanleadtobreathingproblemsallergicreactionsandasthmasymptoms.Thecouplesoughthelpfromaprofessionalbycallingamouldremovalservicescompanytoassesstheproblem.TheydidanairtestandtoldusourhomewasuninhabitableandweshouldntbelivingthereSerenaremembers.Iwasafraidwewerentgoingtohaveahomeforourkids.AftermovingthefamilyinwithSerenasparentstheCritchescontactedtheirbanktoexploretheiroptionsforfundingthecostlymouldremovalandnecessaryrenovations.TheirmortgagerepresentativegotintouchwithNadineReesahomeownerassistancespecialistatGenworthCanadathecouplesmortgagedefaultinsuranceprovider.GenworthsHomeownershipAssistanceProgramisdesignedtohelpitsmortgageinsuranceclientswhenatemporarylifesituationsuchasjoblossadivorceorothernancialemergencymakesitdifculttoaffordtheirmortgagepayments.WhenIrstheardaboutSerenassituationIwasshockedanddevastated.IputmyselfinherplacerecallsRees.IwantedtodowhateverIcouldtohelpSerenaandherfamilyresolvethissituation.WhileReesworkedonndinganancialsolutionforthefamilySerenasmotherorganizedacommunityeventthatraisedmorethan20000tohelpthecouplecopewithexpenses.Wewerespeechlesswhenwerealizeditwasenoughtocoverthemouldremoval.ItwasamazingSerenasaysofthecommunitysupport.SoonafterthefundraiserthebankcalledwithmoregoodnewsGenworthhadagreedtorollthecostofrepairsintothelifeoftheCritchesmortgageallowingthemtopayexpensesovertimeandmovebackintotheirhomemuchsooner.WewereshockedandgratefulSerenasaysofGenworthsassistance.Themoneyallowedustohiresomeonetobuildusanewkitchenandreplacealltheoors.TodaytheCritchfamilyislivinginamould-freepropertyandenjoyingeveryminute.WelovebeinginourhomeSerenasaystearfully.Theresnowhereelsewedratherbe.GENWORTHCANADAFALL2O1321THECRITCHESANDTHEIRSONSTOPHADJUSTMOVEDINTOTHEIRHOMELASTYEARWHENTHEYDISCOVEREDMOULDTHROUGHOUT.AFTERHELPFROMGENWORTHCANADATHEIRHOMEISNOWMOULDFREE.Stevepulledbackallthelaminateooringandhefellthroughtheoor.F LESSONSFROMBUYINGMYFIRSTHOMEAsasavvystudentScottMcGillivraylearnedearlythebenetsofinvestinginrealestateBYLISAFIELDING22GENWORTHCANADAFALL2O13COURTESYHGTVCANADABuyingyourrsthomecanbeadauntingexperiencebutScottMcGillivrayhostofHGTVsIncomePropertyarealestateandrenovationshowtookitastepfurtherturninghisinitialhousepurchaseintoamoney-makingventure.Asa21-year-oldbusinessstudentinGuelphOnt.McGillivraywasntabletondreasonablypricedaccommodationforthenextschoolyear.Thenherealizedhecouldsolvetheproblembybuyinghisownhomeandrentingspacetootherstudents.Ibasicallydidabusinessstudyonrealestateinvestingandfounditwasactuallyquitelucrativehesays.BeforemakingtheleapfromrentertolandlordMcGillivraytalkedwithmortgageprofessionalsREALTORSlawyersandotherlandlords.ThenItriedtogureoutawaytogetintohomeownershipwithaslittlemoneyaspossible.Ayoungbachelorwithlimitedsavingsheoptedforaninsuredmortgage.AndbecauseitwasmyprimaryresidenceIwasabletoputvepercentdownhesays.ForthedownpaymentMcGillivrayusedtheportionofhisstudentloanthatwouldhavegonetoayearsworthofrent.Hefeelsstronglythatrst-timehomebuyersshouldpurchaseahomewithintheirmeans.Ifocusedmoreonwhatwasgoingtoworkformenanciallyratherthanmydreamhome.McGillivraylivedinthebasementapartmentandrentedoutthemainoorwhichbroughtinenoughtocovertheentiremortgagepayment.Thatsparkedmyinterestininvestmentpropertieshenotes.Iwasabletoaffordaverygoodsecondhomeeightyearslaterwitha40percentdownpayment.Havingsincepurchased100propertiesMcGillivraysaysbuyinganincomepropertyisagreatoptionforrst-timebuyerswhomightneedaboosttogetafootholdinanoftencompetitivehigh-pricedrealestatemarket.ThebottomlineYourrsthomedoesnthavetobeperfect.Mostpeoplesrsthomeisnttheirforeverhomehesays.Ifyouwanttobeabletoaffordsomethingyouregoingtoloveinthefutureyouregoingtohavetobenanciallysmartaboutyourrsthome.AnewseasonofIncomePropertystartsSept.19onHGTV.LEARNINGCHECKOUTGENWORTH.CAF Sometimeslifecandeliveranunexpectedblow.Aseriousillnessamaritalseparationorlossofemploymentcancausenancialdifcultiesthatputyourmortgageatrisk.GenworthCanadahasaprovenmethodforhelpingmorefamiliesstayintheirhomeswiththeHomeownerAssistanceProgram.AskyourlenderformoredetailsorvisitHomeownerAssistance.caPeaceofmindinchallengingtimes.2013GenworthMICanadaInc. WithalittlehelpfromGenworthCanadashoppingforyourrsthomedoesnthavetobecomplicated.Weunderstandtheimportanceofowningahomeandhavingtheinformationyouneedtomakesmarthomeownershipchoices.Ourpromiseistohelpyouwithhomebuyingbasicssuchasunderstandingyourdownpaymentoptionsmaintaininggoodcreditandstayingonbudget.FindusonFacebookVisitwww.GenworthSmartShopper.cafortipsandresourcestohelpyouachieveyourhomeownershipdreams.2013GenworthMICanadaInc.Ifonlyshoppingforyourrsthomewasthiseasy