Make The Most Of Your Home Renovations

According to a recent survey by CIBC, 25 per cent of British Columbians plan to make home renovations in the next 12 months and plan to spend an average of $19,000 for those renovations – much higher than the national average of $15,300.

Renovations can add significant financial strain to a household budget and stress to an already busy family, says Avi Kay, branch manager at Envision Financial. But with a bit of planning and research, much of the pain and uncertainty can be avoided and that long-awaited renovation can become a wise investment.

Plan ahead

Before undertaking any renovation project, you should have a clear understanding of the costs involved and the scope of the project. Kay recommends getting several estimates from qualified contractors and to anticipate spending an additional 10-15% for unexpected costs. It’s also important to make sure you have a signed agreement with the contractor you select.

“I’ve seen so many people go into a renovation without a clear plan in place,” says Kay. “By taking the time to really plan out your renovation with an experienced contractor, you’ll go in with a clear understanding of what’s being done and how much you’ll need to spend. You’ll also be happier with the final result and the overall cost.”

Ron Todson, president of the Fraser Valley Real Estate Board and realtor of 30 years agrees, “Your home is likely your most valuable investment so when you decide to renovate, you need to be strategic.

“If you’re updating one part of your house, make sure you leave some room in the budget to lightly spruce up the rest of your home as well,” Todson continues. “Otherwise the newly renovated section can make the rest of your house look outdated and become a drawback in the eyes of a prospective buyer.”

Educate yourself

“There’s a lot to consider and be aware of when undertaking a renovation,” says Kay. “You’ll need to check with your municipal building department to see if your planned renovations are allowed under current zoning and by-laws and make sure they conform to building code. If you’re changing the structure of your home, it’s also a good idea to use an architect so that your plans are structurally sound. Failing to do so could void your home insurance.”

Kay also encourages anyone undertaking renovations to consider greener options. There are often rebates and even tax credits available for eco-friendly renovations. Homeowners can visit the LiveSmart BC website for information on which renovations may qualify.

Choose renovations with good resale value

“The best and cheapest renovation you can undertake is to repaint your house inside and out and a close second is to replace outdated lighting fixtures,” advises Todson. “Paint and lighting, which can be quite economical, really spruce up an older home and make buyers feel like they are getting something fresh and new.”

“The renovations that offer the next best return on investment are kitchens and bathrooms—but the price tag on these items may be a lot higher. Energy efficiency is also a priority on buyers’ lists so it’s worth considering a new furnace or replacing windows,” continues Todson. “However, high-end multi-media rooms and elaborate outdoor spaces including pools do not provide a good return. These items should be added for personal use, not to try and sell your home.”

“Lastly, consider your neighborhood,” concludes Todson. “You don’t want to price yourself out of the market by having the most renovated house on the block.”

Fund wisely

After you’ve made a plan with a qualified contractor and drawn up a budget you feel comfortable with, don’t forget to take the time to make sure you have a cost-effective way to pay for your upcoming renovations.

“Once you have a budget in place, it’s important to make sure you have proper financing available,” says Kay. “The cost of your renovation will go up dramatically if you rely on high interest products like credit cards. Instead, take advantage of low interest rates by renegotiating your mortgage, taking out a home equity line of credit or applying for a personal loan. Take the time to meet with a financial expert you trust—they’ll work with you to find a solution that works for your family.”

http://www.abbynews.com/business/208374071.html

Posted from WordPress for Android

Buying A Rental Property? How The Financing Game Has Changed.

Just four short years ago, you could buy an investment property with nothing down and get the best interest rates in the market.

That was then. Today, rental financing is night-and-day different. To mortgage a small (a one-to-four unit, non-owner occupied) rental property now, you need to plop down one-fifth of the purchase price. And even then, you don’t always get the lowest rate.

With a tipsy housing market and the credit crisis still fresh in memory, regulators and lenders are putting higher-risk borrowers under a microscope. That includes real estate investors.

As a result, it’s now trickier to qualify for a rental property mortgage – especially compared to the days before April 19, 2010. (That’s when federal legislation put an end to insured rental mortgages with less than 20 per cent down.)

So if you are considering a small rental property and need a mortgage soon, here are some things to remember.

You’ll need an ample down payment
If you buy a rental home that you won’t live in, almost every lender in Canada will want at least 20 per cent down. That’s $72,000 on the average $360,000 residential property.

And if you’re purchasing a condo or buying in a “higher-risk” city (like Vancouver), many lenders will want an additional 5 per cent.

Picking the right lender matters more than ever
If you want to be approved, your “total debt ratio” must fall within lender limits. At the risk of oversimplifying, your “total debt ratio” is generally your total monthly expenses divided by total monthly income from all sources, including rentals.

That sounds simple, but it’s not. A borrower’s ability to qualify often depends on how much of her rental income the lender recognizes.

You’d think that if a tenant pays you $1,000 a month, you could add that $1,000 to your income when qualifying for a mortgage. But in many cases, lenders will credit you with only 50 per cent of the rental income you receive, making it harder for you to qualify.

In all, there are four ways that lenders calculate your debt ratios, which are beyond the scope of this column. Suffice it to say, any competent mortgage adviser can point out lenders with borrower-friendly methods.

And there’s one last thing to keep in mind about debt ratios. Different lenders have different limits. Some lenders let you have a 42 per cent total debt ratio. Most others permit just 40 per cent. That extra 2 per cent can make a big difference , especially for folks with mortgages on multiple properties.

The moral here is that the lender you pick can have a major impact on your approval chances. If your qualifications aren’t perfect, you’ll need a lender that is open to some common sense underwriting exceptions, and those are getting harder to find.

Multiple rental properties = headaches
Many lenders prohibit you from owning and/or financing an unlimited number of rental properties.

Even if they don’t explicitly forbid it, the inability to count all your rental income in debt ratio calculations can make approvals challenging, and sometimes impossible. In fact, it often forces people with big rental portfolios to renew mortgages with their existing lender at unfavourable rates and terms.

So if you plan to finance a small rental empire, find a broker that has several clients with 10 or more rental properties. They’ll need that experience to help you know which lenders to use, and in what order.

The key to remember is that lenders with the best rates often have the tightest rules. If you want the best terms, you’ll want to use the more restrictive lenders early in your empire building and save the flexible ones for last. That ensures you don’t run out of competitive lenders when your portfolio gets big.

More paperwork
A few years ago, it was easier to use an appraiser’s estimate of a property’s rental income in lieu of a signed lease. Today, more and more lenders want to see a signed written lease or other proof of rental income.

It also helps to have two years’ tax returns available. That’s because using tax returns to show your net gain or loss on a property can make it easier to qualify, as opposed to using other standard debt service calculations.

The rate is often secondary
Rental mortgages are higher risk so many lenders now charge rate premiums.

Fortunately, you can still find lenders that extend their best rates on investment financing. The question is, do they offer the other features you need?

In keeping with supply and demand, the most flexible mortgages usually cost more. That’s especially true for investment property financing. Be prepared to pay a little extra if you need a lender that satisfies more than a few of these criteria:

-has highly flexible rental income rules
-allows you to carry a greater debt ratio
-lets you put a property in a company name for liability protection
-lets you finance more than four or five properties
-doesn’t impose a minimum net worth requirement
-allows 30– to 35-year amortizations to maximize your cash flow
-lets you prove rental income with “market rent” appraisals
-allows a gifted or borrowed down payment
-allows you to add a second mortgage
-will lend on large mortgages (e.g., $750,000+)
-has a low minimum credit score (e.g. 600 versus 650)
-allows rental income from suites that don’t conform with current municipal bylaws
-provides cash back (sometimes handy for improvements and closing costs)
-allows you to add a vendor take-back mortgage (this is where part of your purchase is financed by the property seller)
-offers a line of credit with your rental mortgage
-pays for your switching fees (this is far less common with rental mortgages than it is for regular mortgages)

Choose your broker carefully
If you want the best rental rate and most flexibility, an experienced no-fee broker is the way to go.

Rental financing is truly a specialization and probably only one in 10 mortgage professionals are actually proficient at it.

Rick Robertson, founder of the lender comparison firm Mortgage Mentor, says one way to screen brokers is to ask how many properties they’ve financed in the last year. If the number is less than 10 or 15, find a more experienced broker.

And Mr. Robertson adds, “Deal with a broker that uses a lot of lenders. Each lender has its own niche and no two lenders in Canada have the same rental policy.”

Via: http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/buying-a-rental-property-how-the-financing-game-has-changed/article6137071/

Steven Giffin
REALTOR® with Keller Williams Realty
902.233.7756 Mobile
902.482.5832 Fax
stevengiffin.kwrealty.com

Bank Of Canada Keeps 1% Interest Rate

The Bank of Canada is keeping its trendsetting interest rate anchored at one per cent for the remainder of the year and sending a message that it still believes the cost of borrowing will go up at some point in the future.

The decision by the central bank’s policy setting panel was in line with the expectations of markets and economists, who had given only low odds to governor Mark Carney removing a mild bias towards raising rates sometime.

The dollar gained strength after the announcement. It was up 0.19 of a cent to 100.7 cents U.S. – slightly higher than just prior to the central bank’s announcement.

The bank’s statement Tuesday acknowledged the economy is weaker than it expected, but suggested it is mostly looking through the soft patch as a temporary aberration.

Last week, Statistics Canada reported the country’s gross domestic product output had slowed to 0.6 per cent – about half what the bank had predicted in October, and the weakest result in more than a year.

“Although underlying momentum appears slightly softer than previously anticipated, the pace of economic growth is expected to pick up through 2013,” the bank stated.

Tying improved conditions to 2013 suggests Carney, who has announced his intention to step down in June to take charge of the Bank of England, now realizes the economy is unlikely to live up to his 2.5 per cent hopes in the fourth quarter as well.

Bank of Montreal deputy chief economist Doug Porter added Carney has no choice but to await the outcome of ongoing “fiscal cliff” negotiations in Washington designed to head off automatic tax increases and spending cuts in January. Policy-makers have calculated the shock could be enough to send both the U.S. and Canada back into recession.

“I think the bank is hedging their bets on the expected upturn of the Canadian economy,” Porter explained.

“We could have the Republicans and Democrats holding hands and singing Kumbaya and the markets would have a tremendous rally and the economy could come flying out of the gate in 2013. The opposite is that we get a bit of a train wreck.”

As it is, Carney said the uncertainty over whether Washington will be able to avoid figuratively going over the cliff is already impacting the economy, another reason for looking through the current weakness.

Retaining the bias for higher rates – even as the economy softens – serves Carney’s purpose of reminding consumers not to count on super-low rates indefinitely.

In a bit of a surprise, he said he is not as yet convinced the recent cooling in housing activity in Canada, and slowdown in credit accumulation, represents a fundamental shift, indicating he remains concerned about the downside risk of keeping rates low for a very long time.

On Monday, Finance Minister Jim Flaherty said he was pleased housing was moderating and that Canadians were starting to pay off debt, a shift in the credit and mortgage market he attributed in part to his decision to tighten borrowing rules in July.

Carney said, however: “It is too early … to determine whether the moderation in housing activity and credit will be sustained.”

While the central bank appears to be waiting for the trend to take hold, Scotiabank economist Derek Holt expects Carney will have all the evidence he needs by spring or summer, when the housing correction “starts as a steep plunge in new condo sales.”

“As housing leads the downsides, I think the consumer picture may not lead growth as much as the BoC seems to be hoping,” he said.

Otherwise, not much has changed in the past month or so, the bank says. Europe is still in recession, the U.S. is recovering but at a gradual pace and Chinese growth appears to be stabilizing. If there is good news for Canada in all this, it’s that commodity prices have remained elevated, which helps the country’s terms of trade.

The decision Tuesday was the 18th consecutive time Carney has kept the policy rate at one per cent, comprising over two years, the longest stretch of stability since the 1950s.

http://www.globalnews.ca/boc+unlikely+to+change+interest+rates/6442765470/story.html

Steven Giffin

REALTOR® with Keller Williams Realty

 

902.233.7756 Mobile

902.482.5832 Fax

stevengiffin.kwrealty.com

 

White Point Lodge ‘Rebuild’ On Track

It can be hard to believe less than a year ago the lodge at White Point Beach Resort was lost to fire. However out of that tragedy came a promise to rebuild by owner Robert Risley.
Now the new lodge has risen from the ground, and is on track for opening the end of October.
Risley says he very pleased with how things are going so far. Though a bit chaotic because of the large number of workers compared to the size of the building, around 70 on site last week, everyone is managing to work around each other.
“Everybody is driving towards a common goal,” says Risley.
Risley himself is on site at least once a week to meet with the contractor heads to go through progress and troubleshoot any problems. Like any construction project there have been challenges.
“A steel frame building is very unforgiving. You can’t just run a pipe through a steel beam,” he says.
However he says they haven’t encountered anything major that has hindered progress.
Risley keeps an eye on the project through the webcams set up on site as well, and stays very involved with all aspects.
“Any project I’ve ever been involved with I get involved down to the most minute detail.”
And there are a lot of little details that go into the build. Risley spent the Labour Day weekend figuring out what the washroom facilities would look like and the best hand dryer for their needs.
“We want to make sure we pick the very best and most efficient one from an energy and operational point of view,” he says.
A lot of thought went into making things more efficient for the staff, with easier access to supplies, as well as what the patrons will see when they come through the doors.
The old lodge had low ceilings, while in this lodge some will be as high as 20 feet.
“It will give a much different feeling when you walk through the front. You not only will be able to see to straight through to the ocean, but also all the way up as well,” says Risley.
The lodge will be fully accessible, something that couldn’t be done in the past because of the age of the structure, and two accessible guest rooms.
While the resort has been mostly shut down, it has also been a time to update other aspects of the lodgings. The cottages are getting upgrades such as new flooring and carpets, bathrooms, linens and televisions.
The build is using as much local trade as they can find to do the job as well.
The windows, doors and exterior siding is being installed by Wayne Wentzell’s company South Shore Home Construction. Chris Primrose from Primrose Computers is doing the data wiring for the building.
“It’s nice when you can deal with smaller sub-trades, because more often than not you are dealing with the owner of the company. You can get very fast decisions made.”
A little further afield Amos Wood in Blockhouse is providing the siding and interior furniture.
“We’re trying to source as much of our wood and routine building supplies as locally as possible,” says Risley.
Using local companies also gave some of the students with the Options and Opportunities program at the high school a chance to work on a large-scale building.
Many finer details going into the lodge will have a local touch as well. A new quilt is in the process of being made by Bev Crouse, and Joe Winters is carving out a new group of folk art figures to replace the ones lost in the fire.
The furniture for the dining room is being built by Lake City Woodworkers out of Halifax, a company that employs adults with challenges.
And yes, even the famous White Point bunnies are taken into consideration. When a bunny decided to make a nest near the construction site, the workers decided to move to a different area until the mother and babies had moved on.

http://goo.gl/XV3EV

Steven Giffin

REALTOR® with Keller Williams Realty

902.233.7756 Mobile

902.482.5832 Fax

stevengiffin.kwrealty.com

 

      

Five Easy Pieces To The Cooling Puzzle

It’s easy to keep cool during the hottest summer weather with a big air conditioner and lots of electricity. Anyone can do that. The trick is cooling your home while also being environmentally and financially responsible.

Here are five uncommon strategies that will help keep your home cool with minimal resources.

Radiant Barrier Foil

This stuff looks like shiny bubble wrap and reflects heat upwards and away before it ever hits your attic insulation. Although relatively simple, it’s an often overlooked option for cooling houses built with typical, insulated attics.

Offered by a handful of different companies, radiant barrier foil doesn’t have any insulation value in itself, but simply reflects radiant heat energy. Think of how much cooler it is under the shade of an umbrella on a sunny day at the beach and you’ll get a sense of how radiant barrier foil works. Although the umbrella has no significant R value, it still makes you feel a lot cooler while you’re under it.

The shiny, aluminum-based material used to make radiant barrier foil reflects energy especially well in the wavelengths so common in a super-heated attic during summer.

Installation of radiant barrier foil is easy, too. Simply spread out a single layer over your existing attic insulation. If your attic has less than R40 or R50 of conventional insulation in place right now, add more before installing radiant barrier foil. Also, make sure the kind of barrier foil you use is perforated with small holes, to allow moisture to escape.

Openable Skylights

Even with all windows open, most Canadian homes still trap a lot of unnecessary summertime heat around ceilings — especially in the upper levels of two- or three-storey homes. Warm air demands to rise, and that’s why openable skylights offer such enormous relief during summer heat waves.

By letting air to rise up and out of the highest parts of your home, air is free to flow in through windows and up through all floor levels. I know from experience at my own place that the effect is amazing. The day I cut through the roof at my house and installed four openable skylights in a third-floor attic loft was the day we cut our already-minimal air conditioner use in half.

With the skylights open, along with windows in the lower levels, there’s a constant upward movement of air that never happened before. And besides fresh breezes, openable skylights foster a bright, delightful atmosphere in any room.

Managing Basement Humidity

Hot, summer weather causes damaging levels of basement humidity to develop, and this situation is rarely managed properly because the technical details are commonly misunderstood.

The problem begins when outdoor air develops high relative humidity levels. As this air enters your basement through windows or vents, it cools, reducing the amount of moisture the air can hold, often driving relative humidity levels up to the point of condensation. This normally happens near basement floors, often hidden from view within carpet fibres that soon smell musty.

Since the source of the moisture is the outdoor air itself, ventilation during hot weather is definitely not what you want. Instead, keep all basement windows closed during hot, humid weather, using a dehumidifier when relative humidity levels rise above 70 per cent. Open basement windows and shut off the dehumidifier when the air gets cooler and drier. Keep an eye on your humidity meter as you get a feel for the right conditions for opening and closing basement windows.

Attic Ventilation

Even with central air conditioning, it’s not unusual for the upper floors of Canadian homes to get too hot during heat waves. And it’s no wonder when you realize that a foot or so above the ceiling, your attic space is 60C or hotter. This is why electric attic ventilation fans were invented. They move the super-heated attic air out, creating a slight vacuum that draws outdoor air in to take its place. The result is attic temperatures that are 20C to 25C cooler than normal, and that certainly makes a difference.

The only issue in all this is that there’s enough vent area leading to the attic that the action of the fan doesn’t draw air upwards from inside your house through cracks around light fixtures, exhaust fans and the attic hatch. The attic vent area should be at least 1/150 of total attic floor area to ensure proper air movement with an attic vent fan.

Verandah Instead of Deck

Covered verandahs aren’t nearly as popular in Canada as backyard decks, but they should be. There’s nothing like the shade of a roof, along with open-air ventilation, to get the most cooling action from a breeze. Covered verandahs are also great places to enjoy outdoor air while it’s raining, and they make deck finishes and windows last much longer, too.

As Canadian weather gets hotter, home features that reduce indoor heat levels by design instead of energy use make more sense. So next time you’re planning home renovations, don’t forget how hot it gets sometimes in our otherwise cold country.

Steve Maxwell, syndicated home improvement and woodworking columnist, has shared his DIY tips, how-to videos and product reviews since 1988. Send questions to stevemaxwell.ca/ask-steve, connect with him on Facebook at Canada’s Handiest Man or follow him on Twitter at @Maxwells_Tips.

via Five easy pieces to the cooling puzzle – Yourhome.ca.

—

 

Steven Giffin

REALTOR® with Keller Williams Realty

 

902.233.7756 Mobile

902.482.5832 Fax

stevengiffin.kwrealty.com

 

            

Getting Into Hot Water, The Right Way

Summer’s inching its way closer, folks. And this last weekend, I kept hearing one thing over and over again: I want a hot tub. Seems like everybody wants one this season.

Most people like hot tubs. Some people love them — and what’s not to love? What better place to relax after a hard day’s work?

As a contractor, there have been days when I could really use one. But when it comes to installing a hot tub, it’s too easy to end up in hot water.

Most of us get caught up in all the fun hot tubs bring — the drinks, the friends, the good times. We forget about the work that needs to go into properly installing and maintaining one.

Whether you’re buying a new hot tub, a used one, or even if someone gives you one, you’re go-ing to spend money. People forget about installation costs. And how much that will be depends on how much you plan ahead.

Before getting one, you need to ask yourself if there’s enough space to safely install and support a hot tub on your property. Is the space accessible? What’s going to support the tub? Do you need to build a deck? Do you need to re-inforce your deck? Will you need permits? Do you need to bring in an electrician? A plumber? An en-gineer or architect?

I’ve heard some homeowners say they want an indoor hot tub. I don’t recommend this. Why not? Think about it. What’s your home’s No. 1 enemy? Water. Not only do hot tubs have water, they have hot water. That means a lot of vapour and moisture. It’s too easy for this moisture to get into the structure of your home. It’s an open invitation for mould.

That’s why you want to keep them outdoors. Installing a hot tub outside is also cheaper. But that doesn’t mean you’re not going to spend money. You’ll need to bring in skilled tradespeople to build the proper concrete foundation, build stable footings and do some electrical work.

For example, you’ll need a licensed electrician to install and wire a dedicated GFCI (Ground Fault Circuit Interrupter) — and it must be dedicated. How far it needs to be from the tub depends on the province you live in. In most cases it’s a minimum of 1.5 metres. But you need to double-check the provincial codes.

An electrician might also need to trench a PVC conduit from the junction box and install a dedicated 30-50 AMP main breaker box — if there isn’t one already. A real pro will also make sure the shut-off or means to disconnect is outside and close to the tub. Why? So it’s accessible in case you need someone to check it out when no one’s home.

Hot tubs are also heavy. Add water and people and you’ve got a major load — about 5,000 pounds. Homeowners need to make sure the right structures are in place to properly support this weight. Do you need to build a deck? If you have a deck, is it strong enough? How strong does it have to be? The best way to figure this out is by bringing in the pros.

Professionals such as a structural engineer or architect can tell you the load capacity per square foot of a supporting structure, like a deck. They can also make the appropriate designs for reinforcing these structures so they can han-dle this kind of load.

Professionals are an absolute must when you’re installing a hot tub on a pre-existing deck. Why? Because without the right structural upgrades, the chance of a deck collapsing under the weight of a hot tub is 99.99 per cent. People can get seriously hurt or worse.

If you’re installing a hot tub on a pre-existing deck without professional help, you’re asking for trouble. Don’t become a headline.

Nine times out of 10, you’re going to have to make structural changes. In most cases, you’re also going to need proper permits. And again, this changes depending on the province and municipality in which you live.

For example, in Ontario, hot tubs fall under the “new structure, addition or renovation” category. That means permits need to be applied for and approved by a city’s municipality before any work can start. If codes aren’t followed, a homeowner risks being forced to remove the hot tub, making the entire project a waste of time and money.

Getting a hot tub is fun but it’s a big project. Buying the tub is only the first step — and it’s usually the easiest. Installation is whole other ball game.

You need to know what you’re getting into before jumping in. That’s why for most homeowners, hiring a contractor experienced in hot tub installations is the smartest choice.

The right contractor will bring in the right professionals. They’ll make sure everything from the footings to the electrical work is done right the first time. So all you have to do is sit back and relax. As far as I’m concerned, that’s money well spent.

Catch Mike in his new series, Best of Holmes on Homes, Tuesdays on HGTV. For more information, visit hgtv.ca. For more information on home renovations, visit makeitright.ca.

Read more: http://www.leaderpost.com/Getting+into+water+right/6800096/story.html#ixzz1ypGalle3

Steven Giffin
REALTOR® with Keller Williams Realty
902.233.7756 Mobile
902.482.5832 Fax
stevengiffin.kwrealty.com

            

How To Beat The Heat And Save 25% On Energy Bills

Things are heating up, folks.

Most of us love the warmer weather. We count down the days until we can say, “Man, is it hot.” But as soon as the temperature rises, a lot of us crank our air conditioners into overdrive.

If you can’t take the heat, there are different ways to keep your home cool over the summer. Not only do they work, but they’re easy on the wallet and the environment — I love it when that happens.

Keeping blinds and curtains closed during the day helps. I encourage everyone to do this. But a lot of heat can get trapped between the blinds and the window. And once the heat is already in your home, cooling things down is an uphill battle. Most homeowners treat the effects of heat. The smart ones stop them before they start.

You want to stop the heat before it enters your home. Otherwise, half the battle of beating the heat is already lost — before it’s even started. And since the problem starts in nature, let’s look to nature to solve it.

How do we stay cool when we’re outside? We look for tree shade.

Just how trees keep us cool outside, they can help keep us cool inside, too. They provide a natural way to block the higher temperatures from entering our homes. If you’re thinking of landscaping, plant a few extra trees around your house. But don’t plant them near the house itself. The extra foliage will direct water and precipitation to your home’s exterior and roof. This wears down exterior finishes and is an open invitation to leaks.

Another way to block the heat and create shade is with an awning. These exterior coverings extend from the tops of windows. They’re like visors for your home. Some homes even have a large one that extends across one side of the house — the side that gets the most sun — usually over a patio.

Awnings are an old school solution that works. They reduce heat gain by about 55% to 77%. They also block UV rays that can damage floors, furniture and finishes. In certain climates, awnings have proved their worth — saving homeowners as much as 25% on their energy bills.

Some awnings are retractable. These are good because they let heat and light come in during the winter. Others are stationary and have to be taken down before the colder weather sets in again.

You need to install an awning the proper way. Do it wrong and it can cause a lot of damage. If it falls, it can pull the siding off your home and damage the exterior — not to mention the risks of it falling on someone. Just like everything else, you want to get the right pro for the job.

If you’re interested in awnings, contact a company that specializes in them. They’ll be able to recommend the right length, width and material depending on your home’s specific needs. And they’ll install it the right way. Their employees should have experience working with these units. Some companies even certify their installers in-house. This makes sure they know what they’re doing before they show up at your home.

Another way to keep your home cool is insulation. Most people think insulation only helps keep our homes warm during the winter. But it actually keeps the interior temperature at a comfortable, constant level. So it keeps homes cool in the summer, too.

If your air conditioning is always working, and your energy bills keep rising, your home could need insulation. A good home inspection will tell you if you’re missing insulation. Make sure the inspector you hire uses a thermal imaging camera and is certified in thermography. Otherwise, the inspection could be worthless.

Summer is a really good time to do this. It gives us that crucial temperature difference we need to do thermal imaging the right way. If the inspector knows what they’re doing, they’ll be able to see heat spots along surfaces where insulation is missing.

Air conditioners are still the crowd favourite for keeping cool. But we want to minimize our air conditioning usage and make it work as efficiently as possible. To achieve this, the outdoor unit must be clear of any leaves, dust and debris. Also, clean the filter every month. And if you can, keep the outdoor unit in the shade. This will increase its efficiency by 5% to 10%.

If you’ve had the same air conditioner for more than 10 years, consider replacing it. Older air conditioners use 30% to 70% more electricity than energy-efficient models. They can also corrode or rust. When that happens, harmful refrigerants like Freon can enter the environment. Why is this bad? Because most refrigerants deplete the ozone layer. This increases global warming.

Incorporating different cooling solutions is smart. We decrease our energy consumption, we decrease global warming, we make our homes work for us — and we save money in the process. Everyone wins when we care.

http://goo.gl/wHcDj

Steven Giffin
REALTOR® with Keller Williams Realty
902.233.7756 Mobile
902.482.5832 Fax
stevengiffin.kwrealty.com

            

Save Time With A Low-Maintenance Lawn

As lifestyles get busier, and concerns about the environment increase, more homeowners are looking for a low-maintenance, eco-friendly alternative to the conventional lawn.

Conventional lawns can take a lot of time to keep green and manicured. Low-maintenance lawns need less mowing, fertilizing, watering and general upkeep. In fact, a Canada Mortgage and Housing Corporation (CMHC) study showed that a sample of residents with low maintenance lawns used 50% less time, 85% less money, 50% less fuel, 100% less water, 100% less pesticides and 85% less fertilizer per year than those with conventional lawns.

Low-maintenance lawns are made up of a mix of species that are typically hardier, better-suited to a wider range of conditions and more drought-tolerant than conventional lawn species. Most are slow-growing or low-height and some, such as fescues, are less prone to insects and other factors that cause stress. Others, such as clovers and trefoils, are able to fix nitrogen, an important plant nutrient, in the soil.

Planting a diverse range of species also provides some assurance that if one or two species are vulnerable to a specific disease or insect, other species can compensate.

There is no specific formula for the best low-maintenance lawn mix, but a general guideline is 40% fescues, 40% other grasses and 20% broadleaf species.

You can adjust the percentages based on your own preferences and the intended use. For instance, in areas where there will be regular intensive activity, reduce the amount of fescue.

If you choose a mix of low-maintenance species that are suited to your soil, you will be able to use less fertilizer and you will need few, if any, soil amendments.

Before planting your lawn, assess your needs and the best locations for lawn. Where lawn is not required for specific activities, consider other low-maintenance alternatives, such as woodlands, meadows or groundcover plants. For example, a narrow side yard on which people occasionally walk may be better suited to groundcover plants or low shrubs, with a pathway of stone or crushed brick.

When you seed your new lawn, you’ll need to water it right away and everyday (unless it rains) for three to six weeks until the lawn becomes established. Water deeply enough to moisten the surrounding soil, but water lightly, as too much force will dislodge the seedlings. Once established, and after it is at least six centimetres tall, mow it to no lower than six to eight centimetres to strengthen the roots, retain water and nutrients, and make the lawn less susceptible to pests. If you have selected species that are suited to your property’s moisture conditions, your lawn should need little if any additional watering for the rest of the summer.

By adjusting our perception of the perfect, uniform lawn, some species once considered weeds might be acceptable in a low-maintenance lawn. Although low-maintenance lawns typically appear less uniform than conventional lawns, for many homeowners a less-than-perfect appearance is well worth the savings in time and costs as well as the environmental benefits.

CMHC has helpful tips about creating a greener, healthier landscape, including an About Your House fact sheet called Low Maintenance Lawns, which lists some suitable species. Download your free copy at www.cmhc.ca or call 1-800-668-2642.

http://goo.gl/uIJKj

Steven Giffin
REALTOR® with Keller Williams Realty
902.233.7756 Mobile
902.482.5832 Fax
stevengiffin.kwrealty.com

            

Ensure Your House Is Vacation Ready

As summer draws near, many Canadians plan extended visits to the family cabin or vacations in distant locations. The excitement of an impending trip can be distracting, but it is important to remember that several steps must be taken to ensure your home is vacation ready.

“Summer vacations are a great way to relax with family, friends, and loved ones,” says Wade Webb, a broker with Royal LePage Kelowna, “but returning from vacation could be far from relaxing if you leave without preparing your home for your absence.”

To set your mind at ease and enjoy your vacation to the fullest, Webb recommends these three home preparation tips:

. Unplug all non-essential electronics and appliances. Appliances and electronic devices left plugged in will continue to drain energy, even when not in use. Why add unnecessary costs to your energy bills? Any electrical appliance that is left plugged in also has the potential to cause a fire.

. Ask a trusted neighbour to check on your house. If you are away for an extended period of time, it helps to know that a reliable person will keep an eye on your home. Any-thing suspicious can be reported to the local police or brought to your attention. A house-sitter can give the appearance of an occupied home, deterring potential burglars – and they can also take care of your pets and plants.

. Cancel the newspaper delivery. No matter how reliable your neighbour is, a pile of newspapers at your doorway is a sure sign of your absence. Call your local newspaper provider to cancel service for the duration of your vacation. Most publishers will be happy to help you resume your service when you return.

http://goo.gl/Zf4J8

Steven Giffin

REALTOR® with Keller Williams Realty

902.233.7756 Mobile

902.482.5832 Fax

stevengiffin.kwrealty.com

            

Mortgage Terminology: A Simple Guide

Mortgage terminology: A simple guide

Understanding the nuts and bolts of your mortgage may seem intimidating at first, but it’s not as difficult as it sounds. Learning more about how mortgages work could save you thousands of dollars in interest or penalties.

There are three basic parts to a mortgage: the amortization, the term, and the interest rate, which could be fixed or variable.

Amortization: This is the total number of years it will take to pay off your mortgage completely. The maximum is 30 years. The longer the amortization, the lower your monthly payments, but you’ll end up paying more interest over the life of your mortgage.

Term: The term is the length of time you have agreed to a certain interest rate and payment schedule. It can range from six months to 25 years, but homebuyers tend to go for terms of three or five years. Ten-year terms have become more popular recently, because fixed mortgage rates are at historic lows.

Variable rates: The interest rate on a variable-rate mortgage is tied to the bank’s prime rate. The prime rate, in turn, goes up and down according to the overnight rate, which is set by the Bank of Canada. A variable rate mortgage can typically be locked-in at a fixed rate, but sometimes there is a fee. Ask your lender for more details!

Fixed rates: These rates are locked in for the length of your term, and they tend to be higher, but you’re paying for peace of mind. The payments, and the amount of interest that you owe, will not change during the term. These rates are dictated by supply and demand in the bond market, which, in turn, is influenced by world events — anything from the European debt crisis to the health of the Chinese economy to the health of Canada’s manufacturing sector can push these rates up and down — that’s why it’s so difficult even for experts to know where rates are headed.

Open: An open mortgage means you can pay the mortgage down or off entirely at any time without any penalties. These typically carry a higher interest rate.

Closed: A closed mortgage means that you will be restricted to how much of the principal you can pay down ahead of schedule. Most mortgages allow what are known as pre-payments or extra payments towards the principal of about 20 per cent per year. Check with your lender for more details! Some mortgages allow you to double up on your payments.

Pre-approval: A lender will typically pre-approve you for a maximum mortgage amount based on your income level at a certain rate for 120 days. If rates drop during that time, you should qualify for a lower rate. If rates increase, you’ll still get the lower rate.

Your monthly mortgage payment consists of interest and principal. Early on in your mortgage, most of your payment will go to interest.

Q. What happens when the variable rate goes up?

A: Either your monthly payment will increase, because you will now owe more interest on your mortgage, or the payment could stay the same, and you will end up making the payments for a longer period of time.

Q. What happens if you pay off your mortgage early?

A: You may face a penalty of either three months interest or what’s known as interest-rate differential, whichever is greater. Interest-rate differential is the difference between the interest rate charged at the time you signed your mortgage and the interest rate available at the time of refinancing. This could add up to thousands of dollars. Ask your lender for more details!

Keep in mind that just because you’ve been pre-approved doesn’t mean you will get the financing for your home. Whether you are approved for a mortgage depends on the home you want to buy in the end. Your lender will need to know the total cost, including property taxes or maintenance fees, and conduct an appraisal before lending to you.

Q. How much do I need for a down-payment?

A: If your down-payment is 20 per cent or more of the home price, you will qualify for a conventional mortgage. If it is less than 20 per cent, you will be required to insure it with mortgage-default insurance from the Canada Mortgage and Housing Corp. These premiums can either be paid in a lump sum or amortized over the length of the mortgage. The larger your down-payment, the less you will need to borrow and the less you will pay in interest.

The Home Buyers’ Plan allows those who are eligible to withdraw up to $25,000 tax-free from their Registered Retirement Savings Plan to buy or build a home. It is a loan and must be repaid within 15 years. To be eligible, the buyer must not have owned or occupied a home as a principal residence at any time for four years. Check with your lender or financial advisor to see if you qualify!

Thanks to Sylvie Ann Messer for this great write-up!  If you have any questions regarding this article or any other mortgage related topic, you can reach Sylvie at:

Key Mortgage Solutions Inc – DLC Capstan
Office: 506-206-3672
Cell: 506-471-3775
Fax: 506-206-4655
www.keyms.ca

You can also contact myself of course at:

Steven Giffin

REALTOR® with Keller Williams Realty 

902.233.7756 Mobile

902.482.5832 Fax

stevengiffin.kwrealty.com