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INDOORS.
>> Reporter: BEATRICE POLITI,
GL
OBAL NEWS.
[ ♪♪ ]
>> Kevin: JOINED BY FRIENDS
FROM TMG ON 23rd, RICHARD AND
DENISE, THANKS FOR JOINING US
AND TALKING ABOUT MORTGAGE
DEFAULT INSURANCE, COULD YOU
EXPLAIN ABOUT WHAT THAT IS
RICHARD?
>> MORTGAGE DEFAULT INSURANCE IS
BASICALLY THAT F SOMEONE DEFULTZ
ON THE MORTGAGE THE LENDER CAN
MAKE A CLAIM TO AN INSURER AND
RECEIVE THE FUNDS
THAT THEY
LENT, THAT THEY HAVE LENT OUT
AND RECOOP THE LOSSES KEV
EVERYBODY THAT MAKES GOOD SENSE
TO HAVE TO DO SOMETIMES AND WHO
LOOKS INTO GETTING THIS KIND OF
INSURANCE.
>> WELL, ANYONE WHO HAS LESS
THAN 20% DOWN IS REQUIRED TO
HAVE AN INSURED MORTGAGE.
MOST FIRST TIME HOME BUYERS, 5%
DOWN WILL REQUIRE WHETHER WE USE
CMHC, GUARANTEED OR GEN-WORTH
FINANCIAL, THEY ARE THE THREE
MAJOR INSURERS AND
THEY LOOK
AFTER PROTECTING THE LENDER
SHOULD THE BORROWER DEFAULT.
>> Kevin: AND THERE ARE
CERTAIN CIRCUMSTANCES IN WHICH
SOMETIMES YOU CAN BE OVER THAT
20% ABOUT YOU STILL REQUIRE THE
DEFAULT INSURANCE, COULD YOU
EXPLAIN SOME OF THOSE
CIRCUMSTANCES?
>> SURE.
IF THE INSURER FOR WHATEVER
REASON FEELS THAT THERE IS MORE
RISK ON THAT PROPERTY THEY MAY
REQUIRE THAT INSURANCE.
>> Kevin: WHAT ARE THE KEY
THINGS PEOPLE NEED TO BE AWARE
OF WHEN THEY DECIDE THEY NEED IT
OR BEFORE THEY PURCHASE IT?
>> WELL,
THAT IS A GREAT
QUESTION, SOMETHING THAT THE
INSURER WILL DECIDE BASED ON THE
PROPERTY, THE LOCATION AND OTHER
FACTORS THAT ARE INVOLVED AND
THOSE ARE ALL THINGS THAT WE DID
US WITH POTENTIAL HOME BUYERS
WHEN THEY COME TO SIT DOWN WITH
US.
>> Kevin: HOW DO YOU PAY IT?
IS IT A ONE OFF OR DO YOU HAVE
TO PAY IT MONTHLY?
>> WHAT HAPPENS IS THAT THE
INSURANCE PREMIUM IS GETS ADDED
TO YOUR MORTGAGE AMOUNT YOU
AMORTIZE THAT OVER 25 YEARS WITH
YOUR PAYMENT.
>> Kevin: HOW DO YOU GO ABOUT
GETTING APPROVAL, WITH ANY KIND
OF INSURANCE THERE IS A WHOLE
APPROVAL PROCESS, WITH
THREE
DIFFERENT INSURERS THERE ARE
DENIALS THAT TAKE PLACE.
HOW DO YOU GET APPROVED?
>> THAT IS A GREAT QUESTION.
I WILL ANSWER THAT BY SAYING A
FEW DIFFERENT THINGS, BUT AS
MORTGAGE BROKERS, WE HAVE ACCESS
TO ALL THREE WHEREAS SOME
LENDERS ONLY HAVE ACCESS TO ONE
OR TWO.
SO WHEN A HOME BUYER OR
POTENTIAL HOME BUYER IS IN FRONT
OF US, WE LOOK AT THEIR
SITUATION AND THEN WE KNOW WHICH
INSURER HAS THE PROGRAM THAT
MEETS THEIR NEEDS IN THE BEST
WAY POSSIBLE.
SO WHE
REAS THEY MIGHT HAVE GONE
SOMEWHERE ELSE AND RECEIVED
DECLINE BECAUSE THAT INSURER
DOESN'T HAVE A PROGRAM FOR THOSE
NEEDS, WE CAN PACKAGE IT AND
SEND IT AND REQUEST THAT ANOTHER
INSURER BE USED.
>> Kevin: THAT SAID DO, ALL
THREE INSURERS PLAY A BIT OF A
DIFFERENT GAME WHERE THEY DO FIT
BETTER WITH DIFFERENT NICHES?
>> WELL, YEAH, SORRY .
>> GO AHEAD.
>> LAST SEGMENT WE TALKED ABOUT
PURCHASE PLUS IMPROVEMENTS.
NOW, ONE INSURER MAY ONLY OFFER
10% AND ANOTHER MAY OFFER 20%.
SO, YOU
KNOW, THERE ARE
ADVANTAGES AND DISADVANTAGES
PERHAPS BUT REALLY IT ALL
DEPENDS ON WHAT THE BORROWER
NEEDS KEV EVERYBODY COULD YOU
LIST OFF YOUR WEBSITE QUICKLY
THAT SOMEONE MIGHT HAPPEN TO
NEED TO USE TO GET MORE
INFORMATION?
>> SURE.
TMGON 2678936789.COM.
>> Kevin: PERFECT RICHARD AND
DENISE THANKS FOR GETTING UP
EARLIER AND BRAVING THE WEATHER
AND COMING TO JOIN US THIS
MORNING.
>> YOU'RE WELCOME.