Have you stuck to your New Year’s resolutions so far? Whether it’s eating healthier, keeping the house clean, getting more exercise, or something more personal, New Year’s resolutions can be tricky to keep.

More often than not, people try to get on top of their home organization at the beginning of the year, making a vow to keep things tidy all year round. We spoke with Nina Duque and Hillary Tan-Ortiz of Overdue Solutions, a cleaning and organizing service from the Greater Toronto Area, and they gave us some of their best tips on how to keep your home organized this year—and where to start. 

“Most people would go for the areas that are an eyesore (out in the open), but we recommend tackling your hidden spaces like closets, cupboards, or cabinets,” says Tan-Ortiz. “These spaces generally hide things you haven’t touched in a while—and will likely never touch for weeks, months, or years to come. Clutter builds up in those spaces because you’re not looking at the mess everyday and we often fall into the trap of ‘out of sight, out of mind.’ You’d be surprised to find things have accumulated overtime.”

What should you ask yourself when decluttering?

It’s not uncommon to build emotional attachments towards your stuff, but it can become a hindrance when you’re trying to declutter your space. 

“Purging can be both nerve-wracking and therapeutic at the same time, but it’s all about practicality,” Duque shared. “If you’re trying to decide on if you should keep or get rid of an item, there are some questions to ask yourself such as:

• When was the last time you used this item? If the answer is more than a year ago, it might be worth reconsidering if you’ll ever use it again.
• How often have you used this item since purchasing it and was it being used enough for you to say it was worth the purchase? If the answers are no, then we’re sorry to say you might have been a victim of an impulsive purchase. (We’re all guilty of it!)
• Take an inventory of your items—do you really need four different hair straighteners? Sometimes you don’t even realize you have multiples of the same item and if you do, it might be worth donating to others who could use your extras.

We’re not going to ask you if it sparks joy, but it’s definitely worth asking yourself if it serves any purpose in your current environment. Sometimes an item that worked well in your old apartment might not have a home for the new house you just bought. Again, think about practicality.

What are the best home organization tips?

Just like buying a home or a car, there aren’t any one-size-fits all solutions to keeping your home organized. According to Overdue Solutions, it’s all about customizing your solutions to your lifestyle and what makes the most sense for your space. That being said, there are a few key strategies you can consider. 

“We often recommend the items you use the most be the easiest to access, and the rest should go into proper storage areas,” Tan-Ortiz explained. Otherwise, here are some other tips to help you out:

• Group liked things together—arts and crafts supplies in a bin, cleaning supplies in the same area, electronics stored together, etc.
• Use clear plastic bins because they help immensely for easy identification if you’re looking for something. Avoid bags! 
• Get into the habit of storing your items in designated spots as soon as you bring them into a new space. If you’re not much of an art décor person, maximize wall space by hanging up items or setting up shelves instead.

What are the areas people tend to forget when organizing?

When you take a look at your home and assess what needs the most attention, odds are you’re focusing on the areas you can see. Bookshelves, coffee tables, the living room, and other highly visible areas are often the first places we start when trying to get organized, but there are a few areas we tend to forget. 

“Kitchen cabinet drawers, shoe racks/cabinets, and bathroom cabinetry (especially under the sink) often get neglected even though they’re wildly overused,” Duque shared. “These storage spots are in high-traffic areas and usually get overly stocked up with various items. We highly recommend purging those areas every season to make sure the stuff that’s not really needed is taken out.”

The best way to organize…

Armed with the knowledge of where to start and what to ask yourself, it’s time to begin organizing and decluttering! Nina and Hil shared their tips on organizing four main areas of your home. 

Bedrooms

“Tackle the closet first!” Duque explained. “A big part of the average person’s bedroom is actually their closet space and/or storage for clothing. Clothing needs to be arranged so the most used outfits (and undergarments) get placed in an easy access area. Seasonal arrangement also helps so you’re not constantly grabbing the wrong things—no one likes reaching over a winter coat when trying to grab a fall sweater.”

Kitchens

“Clear the counter space!” Tan-Ortiz stressed. “It helps immensely when you’re actually trying to use the kitchen to…cook (gasp). And when organizing your pantry, do it by product similarity and what you use most. For example, if you’re a coffee/tea person, that’s definitely the first thing you’ll want to grab rather than some canned goods.”

Playrooms and basements

“Bins, bins, bins,” Duque shared. “Basements are sometimes the go-to extra storage space in households and are often forgotten about. Dust tends to collect faster in basements so bins are your best bet at maintaining storage. Clear bins go a long way in helping you identify things easily.”

Linen closets

“It all depends on your personal preference but we recommend organizing linen closets by colour so it’s easier to identify what matches,” Tan-Ortiz explained. “Plus, it’s always good to know if you’re running out of white towels and will need to do a load of whites, for example.”

In the end, home organization comes down to what works best for you. While there are concepts and tricks to getting started, your home should be set up to best suit your lifestyle and routine—whatever that may be!

The Background

The COVID-19 pandemic brought about various changes and delays to just about everything, and Ontario’s property assessment was no exception. To adapt to the circumstances during the pandemic, the Ontario government postponed the 2020 assessment update. As a result, property assessments for the 2023 and 2024 property tax years will be based on the fully phased-in January 1, 2016 current values. This decision allowed the government to extend the postponement of a province-wide reassessment through the end of the 2021-2024 assessment cycle.

The 2016 Benchmark

In 2016, the Ontario government mailed a Property Assessment Notice to every property owner in the province. This notice reflected the assessed value and classification of each property as of January 1, 2016. Remarkably, this benchmark will serve as the foundation for calculating property taxes for 2023 and 2024. So, what does this mean for homeowners?

If you were a property owner in 2016, you may wonder how the property’s value from seven years ago is relevant to your current tax bill. It’s a valid concern, as property values can fluctuate significantly over time. The answer lies in understanding that the 2016 benchmark as a snapshot in time, serving as a reference point. However, prepare yourself for a possible and maybe even significant increase on the next assessment. 

Ongoing Property Review

The Municipal Property Assessment Corporation (MPAC) continues to review properties during non-assessment update years. Even though the 2016 benchmark serves as the starting point, many factors prompt a reassessment. According to MPAC, these changes could include:

1. Change in Property Ownership or Legal Description: If there has been a change in the legal ownership of your property, meaning you bought and/or sold, you might receive a notice from MPAC.
2. Value Changes from Appeals: If you’ve previously filed a request for reconsideration or had an assessment review board decision, and it resulted in a change to your property’s assessed value, this will be reflected in your assessment.
3. Structural Changes: Any additions, renovations, or demolition of structures on your property can impact your assessment. A new structure, the removal of an old one, or significant modifications will be considered.
4. Classification or Tax Liability Changes: If the classification of your property changes, it can affect your tax liability. Understanding the classification of your property is crucial as it determines your property tax rate.

What to Expect in 2024

As 2024 fast approaches, it’s essential for homeowners to be aware of these factors. With the 2016 benchmark serving as the base, any property changes made since then can lead to increases in your property assessment. 

Property taxes are also influenced by municipal budgets and tax rates, which can fluctuate from year to year. Understanding your property assessment is a vital step in the process, as it allows you to make informed decisions about your financial planning and property ownership.

If you’re a prospective buyer entering the market in the coming months, this information is equally important for you. When considering a property purchase, it’s vital to understand not only the property’s current value but also its potential for changes in the near future.

By being proactive and understanding the factors that affect property assessments, homeowners can plan and prepare for any changes that may come their way. Whether you’re a current homeowner or a future property buyer, knowledge is your greatest ally in navigating Ontario’s property assessment system, be prepared. 

Fire safety in the home is essential throughout the year, though extra attention is encouraged during colder seasons as we fire up our heating systems and turn to candles to create warm atmospheres. There are simple, yet preventative, steps you can take to reduce the risk of fires in your home to keep you, your loved ones and your belongings safe.

This article will assess some of the key hazards in our homes we tend to overlook as well as the major, life-saving effect of working smoke and carbon monoxide detectors.

Fire hazards in your home you may not realize

Some fire hazards are easily identifiable, including unattended cigarettes or fire-burning candles, but there are some less obvious dangers we often overlook. Be sure to add these areas to your fire mitigation plan, too.  

Dryer lint

When it comes to fires caused by home appliances, dryers are at the top of the list. Make sure you’re regularly clearing lint from the trap, vent, and exhaust pipe. The lint trap should be cleaned after every cycle, while your vent and exhaust pipes should be at least once a year or when you notice clothes are taking longer to dry. 

Forgetting pots and pans on your stove

The Canadian Red Cross lists unattended stoves as one of the leading causes of home fires in Canada. Turn off your stove if you aren’t there to attend to it, and if you’re leaving something to simmer or stew all day, don’t leave the house with the stove on. Be sure to clean flammable grease and grime off your stove as they can catch fire and ignite nearby combustibles like kitchen cloths and towels, as well as cabinets and curtains. 

REMEMBER: Never use water to put out a grease fire. Turn off the heat source, use a metal lid to cover the fire, and use a fire extinguisher. If the fire feels unmanageable, evacuate and call 9-1-1. 

Overcrowding electrical outlets

Electrical fires can be caused by overloaded outlets. When outlets carry too much electricity, they generate an increased level of internal heat that could ignite a fire. Ideally, appliances should have their own outlet, and never plug more than one heating appliance into a single outlet. 

Dust building up around electrical outlets

Dust bunnies appear well before a spring clean, which is why it’s so important to dust your home regularly. Dust is highly combustible, and when it’s collected near electrical outlets or space heaters, it’s susceptible to igniting and spreading.

Flammable items on or near heat sources

Clothes, furniture, stuffed animals, towels, or other flammable materials could start a fire when placed on or too close to radiators, lamps, stovetops, lights, or space heaters. Double check there is adequate space between flammable belongings and heat sources. 

Leaving styling devices connected

Straighteners, curling irons, and flat irons all have the potential to start a fire if they are left plugged in and unattended. Adopt the habit of unplugging them immediately after use, and look for styling tools that have automatic shut-offs after a certain period of time. 

Christmas trees

Both artificial and real trees present fire hazards. Real trees should be watered daily to avoid becoming dry and highly flammable, especially with lights strung along the branches. Trees should also be kept far away from open fires or space heaters and electrical sockets should not be overloaded with Christmas lights. As noted above, overloading outlets is hazardous and could spread through a flammable Christmas tree quickly. 

How often should you test smoke alarms and carbon monoxide detectors? 

We expect our smoke alarms to be ready at any time to alert us of a fire, which is why it’s crucial to check them regularly. Smoke alarms come with manufacturer’s instructions on testing and maintaining your alarm, but First Alert recommends smoke detectors be tested on a monthly basis.

If your alarm is powered by a nine-volt battery, it’s recommended the batteries be changed every six months. Similarly, hardwired smoke detectors should have their backup batteries replaced every six months and be replaced entirely every 10 years, though it’s best to refer to the manufacturer’s recommendations.

Carbon monoxide detectors are mandatory for your home in most provinces, and strongly recommended even where it’s not law, as they catch dangerous levels that come from gas or wood-burning fireplaces, gas stoves and ovens, furnaces, boilers, and water heaters. They should ideally be replaced every five to seven years, and checked monthly to ensure they’re working properly. 

The placement of smoke and carbon monoxide detectors is again regulated by the province or municipality. In Ontario, for example, detectors must be located adjacent to all sleeping areas of the home if you have a fuel-burning appliance, fireplace, or an attached garage. If you’re unsure of your local or provincial laws surrounding carbon monoxide detectors, check with your local fire department.

Tips for fire safety as a homeowner

It’s important to be aware of all possible escape routes from your home, which is why a personalized home emergency evacuation plan is strongly advised by First Alert, among other fire safety organizations. Though ideally you’ll never have to use it, the plan should be in place and practiced at least twice a year to avoid heightening the panic or confusion in the event of an emergency. 

When making your escape route, consider the following: 

• identify multiple exits in the event your main exit is blocked during an emergency—First Alert recommends two exit routes from every room in your home;
• consider keeping escape ladders in rooms on the second floor for additional exit options;
• assign a meeting spot for the family in the even you’re evacuating separately; and
• assign one person to assist pets, children, or anyone else who may need help evacuating.

It’s also important for everyone in your home to know how to properly use a fire extinguisher. Think of the acronym PASS. Pull the pin, Aim the nozzle, Squeeze the handle, Sweep the area. First Alert recommends checking your fire extinguishers on a monthly basis to ensure the pressure indicator is pointed in the green zone of the dial. If it’s not, your extinguisher needs to be serviced immediately. They also remind people most fire extinguishers only last five to six years before they need to be refilled, so keeping track of those dates in something like a homeowner’s journal is key. 

Here’s a handy checklist of preventative measures and tips, in addition to your smoke alarms and carbon monoxide detectors, on how to proceed in the event of a fire:

• map out an escape route, making note of anyone who will need assistance and establish a safe place to meet outside of the home where everyone can be accounted for;
• make sure to completely stub out fire burning candles and any other lit items before leaving them unattended;
• keep flammable liquids or items like curtains, paper, and clothing at least three feet away from appliances like space heaters or radiators;
• if there’s a power outage, consider using a flashlight instead of candles; and
• as well as keeping matches, lighters, and flammable liquids out of reach of children, have regular conversations with them about the dangers of fire and ensure they’re aware of the “stop, drop, and roll” technique should their clothing catch fire.

While you may not be able to prevent fires completely, being prepared in the event of an emergency is key when it comes to keeping you and your family safe. If you’re ever curious about how you can make your home more fire safe, contact your local fire department for details. 

What are some common signs around the home that can lead to more serious problems for you in the future? And how does this affect your quality of life at home, not to mention the resale value?

When you own a home, you get to pick and choose when you want to make aesthetic repairs. Chipped paint in the wall may not be at the top of your priority list, but sometimes things we think can be left alone are actually a sign of larger issues at play. Ignoring these common problems around your home can lead to troubling outcomes, so it’s important to address them before they potentially become more serious—and more costly.

1. Water stains and warped walls, ceilings, or floors

What starts out as a small water stain or a warped wall or ceiling is often a sign of a leaky roof, dripping pipes, or faulty plumbing. Whether big or small, every leak should be looked into as soon as possible. 

“The first thing to check for are fixtures (faucets, sinks, toilets) then check your bathroom showers or tubs by running water through them,” says Paul Rodriguez of Intelligent Contracting Solutions, Ltd. in Toronto, Ontario. “Water intrusion into the home is a problem that cannot be ignored. It can lead to issues that will be expensive to remediate. If you’re unsure, call a plumber right away!” 

Water spots, warped or missing shingles, or water-damaged exterior walls are all signs of roof leaks. If you suspect a leak on your roof, you can check in your attic for water damage or mould around the rafters and roof sheathing. Leaks can also be identified by going onto the roof itself, but in this scenario you should call in a roofing professional to do so. 

Without being inspected and repaired, leaks can lead to water damage to your drywall, insulation, and flooring. As a result, mould, and mildew springs up. Ensure you quickly identify where the leak is coming from and call in a plumber or roofing professional (depending on where the leak originated) to get it repaired. The longer the leak lasts, the more likely structural damage and mould can occur, negatively affecting the health and resale value of your home.

2. Mould and mildew

Any time water or excess moisture enters your home, toxic mould can grow. Signs to look out for include musty, stale-smelling air, and small black specks, especially in your basement, attic, or around damp areas in your house, such as your laundry room. You may also feel your own health being affected with sinus, cold, and other symptoms. Don’t forget to check for mould and mildew if you’ve recently had to repair a water stain as mentioned above. 

“Don’t ignore leaks, they can lead to mould,” Rodriguez cautions. “This can have serious health impacts. If you notice mould behind drywall, inside cabinets, or another place where a leak has been happening, call an abatement company after having dealt with the leak with a plumber.”

It’s important to address mould growth before it spreads.You’ll need to identify why they’re occurring, and what repairs need to be done to prevent it. According to Health Canada, household dampness and mould can lead to eye, nose, and throat irritation, worsening of asthma symptoms, bronchitis, and eczema—all depending on the species, severity, and length of exposure. 

Potential buyers would absolutely take this into consideration, learn of the cost of repairs needed to stop the issue, and then take this into account when submitting bids.

3. Cracks in your home’s foundation

In Canada, our homes become subjected to extreme changes in weather, such as heavy wind,storms and relentless freeze-thaw cycles. Because of this, small hairline fractures may occur in the concrete around the outside of your house. These small cracks are common, but it’s important to look out for bulging or buckling in the concrete, or cracks wider than about the width of a pencil. These can be signs of more significant problems which require repairs to your foundation—no small task If you do see some cracks, but you’re not sure whether it’s time to call in a structural engineer or foundation contractor, Rodriguez says you can monitor them on your own—at first.

“Take a marker and make two lines across from each other, on opposite sides of the crack. Measure between the two lines, record the measurements. Come back in three weeks and measure again. If the gap has increased, call a structural engineer for an assessment. Settlement in new construction can happen, but drastic changes can mean something is wrong with the foundation such as footings or drainage.” 

If the gap hasn’t widened, there’s no need to address them unless you want to for aesthetic reasons. Just keep an eye on them and make sure they don’t grow. Without being addressed, these larger cracks can grow, allowing water and salt to enter the concrete and further erode the steel rebar within the foundation of your home. When this rebar erodes, it threatens the durability of your home and can lead to potential rotting and damage to the internal structure of your home. 

Other signs to look out for that signify your home’s foundation is shifting include cracks in the paint inside your home, difficulty opening and closing your doors and windows, or uneven flooring. Though these issues may be harmless—door frames can shift due to humidity in the summer—they may also be signs that one of the joists that support your flooring has rotted or is broken, requiring a replacement. If you’re unsure, it’s always best to get professional advice. 

Foundation issues can significantly affect the resale value of your home as a new owner would have to pay for repairs. Cracks in a foundation are something home inspectors look for, and if a home inspection is included as a condition of your home’s sale, it could mean the deal won’t go through. 

4. Pests and rodents

Pests and rodents can cause significant damage to your home, termites being one of the most destructive. Aside from the very unpleasant idea of having critters running around your home, rodents can cause damage you may not see right away.

“It’s important to have your home protected from the intrusion of rodents,” Rodriguez explains. “They can destroy insulation, wiring, and other components behind walls or in your attic. Inspect your home yearly for gaps around soffit and fascia, shingles or missing roofing materials. There are companies who specialize in removing rodents, squirrels or raccoons, as well as making sure they stay out.”

When it comes to insects, they can cause structural damage to your drywall and baseboards.

“Pests can be worse [than rodents] and detrimental to your wellbeing,” Rodriguez tells us. “ Identify what these pests may be in your area and call a specialist to treat and prevent intrusion.”

Signs to look out for include “termite tunnels,” which are small black or brown stick-looking tunnels made from wood, soil, and termite saliva. Small piles of shed wings, a significant amount of dead insects, mouse waste, chewed wires, or ripped-up paper, cardboard, or fabric are also indicators that you have a pest problem. 

It’s important to get an exterminator in your home and identify how these pests are getting in to prevent future problems. The longer you leave these insects and rodents alone, the more time they will have to breed and cause even more damage, lowering the resale value of your property.

5. Electrical overload

Do you own an older home that hasn’t had its electrical wiring inspected? There may be some tell-tale signs your home is experiencing electrical overload.

“Flickering lights or a breaker always tripping when running multiple appliances can be signs of shoddy electrical work or overloaded circuits,” Rodriguez says. “Ignoring these signs can lead to appliance damage, or worse, an electrical fire. Don’t wait, call a licensed electrical contractor to assess and repair any damage or improper wiring. Make sure an ESA [Electrical Safety Authority] permit is pulled and work is inspected. This way you can ensure that the work is done by code.”

Rewiring an entire home can be costly but is necessary and should be done as soon as possible by a licensed professional. When potential buyers have your home inspected, these wiring issues will definitely affect your house’s resale value.

If you ignore little problems, they become big. Don’t write off these signs of potential problems that can cost you more in the future. 

Whether you are trying to sell your home or just trying to spruce things up for guests, taking the time to add exterior elements to the face of your home will allow it to look more appealing and welcoming. Giving attention to little elements such as the porch of your home will increase the value of your home and give you a competitive edge on other properties. If you’re not sure what exactly to do, we have laid out 10 improvements you can make to improve the curb appeal of your porch!

Improve Old Hardware 

Small features such as house numbers and light fixtures can be updated and colour-coordinated to give the home an elegant feel. Outdoor wall lanterns can be layered with cozy string lights to further warm up the space. As for house numbers, oiled bronze finishes go well with more traditional homes while brushed nickel finishes suit more modern homes. 

Install Colourful Window Boxes 

Contrary to its name, window boxes are not limited to just windows. They can be placed on the railings of your porch as railing planters to add some colour to the porch. When choosing a window box, it is important that it is coordinated with the home’s trim, shutters and doors to connect the exterior of the home together. 

Fill the box with many flowers or plants that allow it to look full and healthy, adding even more life to the property. Flowers like petunias, fuschia, and begonias are popular and easy options for rail planters. 

Upgrade Outdoor Furniture 

Outdoor furniture can be arranged in many ways to propose an inviting and welcoming essence to guests. If you have a smaller porch, go for chairs and tables that are less bulky but still have the same aesthetic that ties into other elements of your home. In contrast, if you have a bigger porch, separate your outdoor furniture into different zones to make it feel spacious.

When choosing colours, it is important to follow the vibe of your home. Stick with colours that complement other aspects of your home such as your flowers, or ones that contrast your front door to really make it pop. Other accessories like cushions can really enhance the aesthetic of your home with interesting patterns and designs and using bold colours.   

 

Repaint the Porch Floor 

Purchasing a home comes with plenty of ongoing financial commitments, from property taxes to seasonal upkeep. Home insurance is an expense most homeowners are familiar with – and when you’ve made the biggest financial investment of your lifetime, it’s vital to protect it, your belongings, and your liability. However, a cost often overlooked by buyers – and especially first-timers – is the need to insure your mortgage in addition to your physical real estate.

Mortgage insurance tends to be a confusing topic for Canadian home buyers as there are three main types they should be aware of: mortgage default insurance, mortgage life insurance, and traditional life insurance.

Here’s how these mortgage insurance types differ, and whether they may be the best fit for your home purchase.

Mortgage Default Insurance (a.k.a. CMHC Insurance)

Mortgage default insurance is mandatory coverage for buyers who pay less than 20% down on their home purchase. The beneficiary is your mortgage provider – should you become unable to cover your payments and default on your mortgage loan, the lender won’t be on the hook for the financial loss.

Why do I need mortgage default insurance?

If you’re paid less than 20% down on your home, you are classified as a higher-risk mortgage borrower (also referred to as a high-ratio or non-conventional borrower). Because you have less equity in your home, and are likely taking on a larger loan to afford your purchase, you pose a greater financial risk to your mortgage lender. As a result, the government requires you to take out this additional coverage and essentially pay for your own risk.

There are also limitations on what type of properties can be insured against mortgage default in Canada, meaning they cannot be purchased with less than a 20% down payment. They include:

• Homes priced over $1 million
• Rental properties
• Mortgages with an amortization over 25 years

Canadians may also have only one high-ratio mortgage at a time; if you currently have one, you cannot purchase a second property and pay less than 20% down.

Where do I get mortgage default insurance?

Mortgage default insurance will be applied for on your behalf by your lender from one of three providers. The most common is the Canada Mortgage and Housing Corporation (CMHC). This is a taxpayer-backed Crown Corporation that also acts as the national regulator for mortgage insurance and premium pricing. In fact, the CMHC is so synonymous with mortgage default coverage that it’s often unilaterally referred to as “CMHC insurance”.

However, the CMHC only covers roughly 50% of high-ratio mortgages in Canada – the other half are covered by two private insurers, Genworth Financial and Canada Guaranty. While these insurers operate autonomously, they almost always follow the same pricing and criteria set by the CMHC.

Related Read: CMHC Mortgage Insurance Hikes to Come

How much does mortgage default insurance cost?

The premiums for this coverage are calculated based on the size of your down payment, as per below:

Source: Canada Mortgage and Housing Corporation

For example, if you are making the minimum 5% down payment on a $500,000 home ($25,000), you will be charged 4% on the remaining mortgage balance of $475,000 in mortgage default premiums. That’s an extra $19,000 you’ll need to pay over the course of your mortgage.

However, this premium will be rolled automatically into your mortgage payments, and paid according to your selected payment schedule (whether monthly, bi-weekly, or accelerated). In the above example, your mortgage default coverage will cost $63.33 per month.

It’s important to factor this additional cost into your monthly affordability when determining how much of a mortgage you can carry. It will also be considered by your lender during the mortgage qualifying process, along with your income and other existing debt obligations.

Related Read: 5 Must-Know Tips to Pay Less On Your Mortgage

Mortgage Life Insurance

Unlike mortgage default insurance, mortgage life insurance is an optional product – though it’s highly likely your lender will urge you to consider it. This is coverage that will pay the remaining balance of your mortgage in the case of untimely death for your or your partner (critical illness and accident coverage can sometimes also be added to this coverage). It sounds like a great idea, but there are some key factors to be aware of.

• With mortgage life insurance, the benefactor is the bank. This means that the death benefit will only be used to cover the outstanding mortgage payments, and your loved ones won’t be entitled to receive any of it directly;
• The death benefit cannot be used to supplement your loved one’s incomes, or cover any of your end of life costs;
• The amount of coverage you’re entitled to will also decrease over time, as the amount left on your mortgage shrinks.

Traditional Life Insurance

Many homeowners instead opt for a traditional life insurance policy to cover their mortgage, as it offers greater financial flexibility. First, there are a number of life insurance products to choose from, based on your age, health and financial situation – for example, you could choose to take out a 25-year-term policy for the length of your mortgage, and opt to convert it to a permanent life policy with a cash value after.

With a traditional policy, the death benefit also goes directly to the beneficiary of your choice, meaning your loved ones can use it to pay off the mortgage, supplement their standard of living, and even save for retirement. It’s an option that offers greater control and peace of mind.