Looking for an older house that has special character or for that perfect fixer upper? You are not alone. A vast majority of the HGTV reality TV shows today focus on finding that diamond in the rough, putting some sweat equity into it and making it your own. As you look at potential purchases, you may be focusing on looks or how it will look, but don't forget about the bones of the house and what might lie underneath.

Aluminum wiring, which was used in the 60s and 70s and knob and tube wiring in the pre-1950s homes, are well-known safety hazards for home owners. With advances in technology and the products we use, these systems have become antiquated and may not only operate less efficiently; they could also put homeowners at risk for more serious issues. Poor connections, repair or remodel work not done by professional electricians and even simple wear and tear can cause these wires to short circuit or overheat over time.

This type of wiring can also cause major issues when buying or selling a home. Many of Manitoba's insurance companies won't insure homes with either as they believe the house poses a higher risk of loss to fire. Another problem that faces these homes is that all mortgages in today's marketplace require home insurance to be placed on the property.

Here are a few things to consider when either buying or selling a home:

1. What problems does this kind of wiring cause for the mortgage process?
   - The lender may ask for remediation within a specific timeline before possession.
   - If home insurance can't be purchased, the mortgage cannot proceed no matter what step of the process you are in.
   
   
2. Is the property insurable?
   This will depend on what time of wiring is in the home.
   
   
3. What needs to be done if the home has either aluminum wiring or knob and tube wiring?
   It is good to have a qualified electrician inspect the wiring and make recommendations on how to proceed. It is also important to contact a knowledgeable insurance broker to find out what options are available to the homeowner.

Whether buying or selling, we recommend you become an expert on what lies behind the walls of your home. Knowing ahead of time can help avoid any unpleasant "surprises" at inopportune moments in the selling/purchasing process. Contact a knowledgeable Winnipeg mortgage broker for recommendations on qualified electricians to inspect and evaluate wiring and insurance brokers experienced in dealing with these kinds of situations. For more information give us a call today at 204-954-7620.