Ask Your Questions on the Ma maison RONA TV  Show 2008 contest

The winning question - Week of June 2, 2008

QUESTION (Charlotte Ferland, Contrecoeur):

Is it preferable to increase my mortgage, take out a personal loan or use my personal line of credit to finance my home renovations?

ANSWER: (Annie Dell'Aniello, Personal Financial Advisor):

Before giving you an answer, it would be necessary to analyze your personal situation and repayment capacity. The product recommended depends on the scale of the work and the interest to be paid. Generally, major renovations would justify taking out another mortgage or using a line of credit with security of mortgage, or the Multiproject Option included with Desjardins mortgages. A personal line of credit would be recommended for major renovations that require progressive cash outs, while a personal loan could finance smaller renovations.

The winning question - Week of May 26, 2008

QUESTION (Anne Lazaridès, Montreal):

I would like to know if my home insurance offers adequate coverage during renovations or if I should take out a specific insurance?

ANSWER: (Nancy Murray, P&C Insurance Agent - Individuals):

It all depends on your situation. You should contact your insurer during the renovations, especially if they are going to increase the value of your property, such as finishing your basement, adding a second floor or expanding. The insurer will then thoroughly analyze your file and adapt your contract accordingly.

The winning question - Week of May 19, 2008

QUESTION (Linda Blondin, Saint-Hubert) :

Let's say I have disability insurance on my mortgage and that I become disabled. Will I be entitled to the full amount set forth in my insurance contract even if I receive CSST benefits?

ANSWER: (Jonathan Dionne, Personal Financial Advisor):

Yes, you will be entitled to the full amount of benefits.

Loan insurance benefits are not affected by benefits from other private or public disability insurance plans like, for example, the CSST. Also, unlike disability insurance at work, loan insurance benefits are not taxable.

The winning question - Week of May 12, 2008

QUESTION (Mélissa Dubé, Lévis):

My question is the following: Is it true that it's better to choose a variable interest rate instead of a fixed rate?

ANSWER: (Jonathan Dionne, Personal Financial Advisor):

Studies show that by opting for a variable interest rate, you save more long term. However, different people choose different types of mortgages, depending on their situation. What are their expectations, budget, family and professional situations? How well do they tolerate rate fluctuations? It is essential to cover all matters with your advisor in order to choose the type of loan best suited for your needs.

The winning question - Week of May 5, 2008

QUESTION (Luce Cantin, Pont-Rouge):

Hello! I would like to know when I should take out insurance and what type of insurance to get when my house is being built and that I'm the one assigning the contracts to the various specialists?

ANSWER: (Nancy Murray, Personal Property and Casualty Insurance Agent):

You have to contact your insurer as soon as construction starts so you can enrol in insurance that covers the risks related to a building under construction, for example vandalism, theft of materials, liability for the site and liability for some of the people you hire as well as for volunteers. Your insurer will inform you of any possible exclusion.

The winning question - Week of April 28, 2008

QUESTION (Julie Tremblay, Varennes) :

When buying a home, is it mandatory to insure the mortgage in case of death or disability?

ANSWER: (Annie Dell'Aniello, Personal Finance Advisor):

Taking out mortgage insurance is optional. However, before you decide, you should consider certain factors. For example, in the event of your death, would your family be able to keep the house with one less source of income?

If you are unable to work due to an accident or illness, your income will drop even if you have disability insurance at work. How will you make ends meet?

By buying life and disability insurance, you are protecting yourself and your family.

The winning question - Week of April 21, 2008

QUESTION (Chantale Guillemette, Les Méchins):

Hello! My question is the following: If my spouse and I build our own house, can the income saved be used as a down payment?

ANSWER: (Annie Dell'Aniello, Personal Finance Advisor):

The answer is yes. In fact, the down payment can come from several sources, e.g. accumulated savings, RRSP, cash donations, or cash back from lenders. In addition, if you build your house yourself, the land on which you want to build, as well as your parents' and friends' help, could go towards a down payment. However, to be accepted, the person must be certified and should not exceed 2.5% of the construction's expected total cost. Ask your financial institution.

The winning question - Week of April 14, 2008

QUESTION (Christian Busque, Saint-Éphrem):

Hello! I would like to know who's eligible for the Home Buyers' Plan (HBP) and if we can participate more than once.

ANSWER(Jonathan Dionne, Personal Finance Advisor):

First of all, the HBP makes it possible to use up to $20,000 from your RRSPs, which means $40,000 per couple, as a down payment on the purchase of a home.

You are eligible for the HBP if neither you nor your spouse owned a primary residence during the year the amount was withdrawn from the RRSP and the 4 previous years. You can take advantage of the HBP more than once as long as your HBP balance is zero.