Montreal, Canada, April 08, 2006 --(PR.com
)-- Today The Hughes Trustco Group (Xpressterm.com) advised its brokers to discuss longer term life insurance policies for borrowers after Genworth Financial Canada today acted to help potential home buyers with concerns about affording monthly mortgage payments, saying it would begin insuring 30 and 35-year loans.
Buyers could reduce their monthly payments by as much as $300 per month on a $400,000 loan at six percent interest. The principal and interest payment would be $2,559 on a 25-year mortgage, $2,379 on a 30-year mortgage and $2,261 on a 35-year mortgage. "Genworth is committed to introducing innovative products to help Canadians buy homes sooner. Insuring mortgage loans with extended amortization periods will enable buyers to keep monthly costs affordable even as both interest rates and home prices continue to rise." said Peter Vukanovich, President.
Insurance for loans under the new 30- and 35-year mortgage amortization program will include a 0.20% premium surcharge for every five years of amortization beyond the traditional 25-year mortgage period. "While lowering payments, people need to be aware that to pay off the house, they will need a correspondingly larger amount of protection" said Ivon T. Hughes, President of The Hughes Trustco Group. "Payments stretch out forever into never never land and you need to have enough term life insurance and disability insurance in place in case something happens. This should be of concern to all participants in such mortgages. We always recommend term life insurance in these cases as it is the cheaper and lower payments are what the client is trying to achieve. While term life insurance has no cash value, it provides better value as you have more life insurance coverage for your money."
About Genworth Financial Canada
Genworth Financial Canada, the Homeownership Company, works with lenders, mortgage brokers, real estate agents and builders to make homeownership more affordable and accessible throughout Canada. The company combines global experience in mortgage insurance with technological and service leadership to deliver innovation to the mortgage marketplace.
About The Hughes Trustco Group
The Hughes Trustco Group went online in June 1998 to supply information about life insurance to consumers from all the life insurance companies. The website is visited every day by persons seeking information on term life insurance, disability insurance, critical illness and all forms of life & health insurance. Life insurance quotes are provided from all the companies allowing the client to make an independent assessment.