New Homes
New Homes
Mortgages go green as big banks offer incentives to buyers
The trend toward green living has finally caught the attention of the banking industry.
Banks have watched as consumers have made greener choices in everything from washing detergent and light bulbs to high-efficiency furnaces and solar-energy panels.
With consumers interested in greening their lives, most of Canada's major banks have seen the opportunity to offer "green mortgages," which offer homebuyers a discounted interest rate and other incentives to buy more environmentally sensitive houses or perform upgrades aimed at lowering their environmental footprint.
"We made the decision (to offer green mortgages) to respond to that market," says Katie Archdekin, head of mortgage products for BMO. "We wanted to encourage customers to make positive change and positive choices for the environment. We've had great response."
Consumers, especially first-time buyers, are increasingly looking to green home upgrades to help the environment and lower the carrying costs of owning a new home.
According to surveys conducted by Leger Marketing, while Canadians are interested in lessening their impact on the environment, the decision to buy a "green home" is really being driven by saving cash. More than 59 per cent of respondents cite financial savings as the main reason for making eco-friendly upgrades and purchases.
The results are not surprising, considering more than 51 per cent of survey respondents say utility costs are the biggest surprise financially when it comes to owning a home.
Having new windows, doors and a high-efficiency furnace can go a long way to help make those carrying costs more palatable, according to Leger, which found 92 per cent of Canadian respondents recognize the cost advantages of energy-efficient home upgrades.
It also found nearly half of all homebuyers plan to make investments in energy-efficient upgrades in the next year, especially with the anticipated extension of the federal government's EcoEnergy Retrofit program. The program allows Canadians to write off a portion of their green home renovations on their taxes.
The green trend isn't just infecting resale homebuyers. According to an EnerQuality Green Building survey released in November 2009, more than 40 per cent of Ontario homebuyers are willing to pay up to $10,000 more for a new green home, or a home that is Energy Star-certified. That number is almost double the 22 per cent of homebuyers who were willing to spend that amount of money in 2008.
Farhaneh Haque, regional manager of Mobile Mortgage Specialists at TD Canada Trust, says with the additional money buyers are willing to spend on green homes and upgrades, many have been inquiring about discounts and incentives from the banks to help them.
"Environment has become increasingly popular. A lot of politicians are talking about it, the general public is talking about it, there are a lot of home-renovation projects that you see around or on TV that are talking about it, major suppliers of home appliances are talking about it. It's become very evident in the market," says Haque.
"It just made a lot of sense to have a product that supports our clients' motivations. It encourages clients to seek out home renovations and take part, or participate, in environmental initiatives. It encourages green behaviour."
While almost all of Canada's big banks are offering green mortgages, the loans aren't open to just anyone. Buyers must qualify for the green loan by proving the house they are buying meets certain green-energy standards, or that they will be completing certain green upgrades to the home shortly after moving in.
Incentives the banks offer vary. Some will provide rebates equal to the cost of a home-energy audit, which is around $300, and then a cashback incentive that can be used for green upgrades. Others offer discounts to posted mortgage rates.
Eco-mortgages
With so many different "green" mortgage offerings out there, wading through them can be a daunting task. Below is a list of a few of the more popular options:
RBC Energy Saver Mortgage
Receive a $300 rebate on a home energy audit.
Get a five-year, fixed mortgage with an annual interest rate of 4.34 per cent, more than one per cent lower than the regular posted five-year rate.
TD Canada Trust Green Mortgage
Offers customers one per cent off the posted interest rate on a five-year, fixed-rate mortgage.
Customers also receive a cash rebate of up to one per cent of the amount of the mortgage when homebuyers make Energy Star-qualified appliance purchases and home upgrades or purchase CSA-approved solar panels.
TD will also donate $100 to the TD Friends of the Environment Foundation charity for each Green Mortgage opened.
BMO Eco Smart Mortgage
Offers buyers of green properties a 3.89 per cent annual interest rate on their mortgage.
In order to qualify for the BMO Eco Smart Mortgage, the home must meet certain requirements as confirmed by a third-party appraiser (or energy auditor) arranged by BMO.
Canada Mortgage and Housing Corp. (CMHC) incentive
If a person uses CMHC-insured financing to buy an energy-efficient home or purchases a house and makes energy-saving renovations to make it more energy-efficient, a 10 per cent refund on the mortgage loan insurance premium may be available.
New Homes
Contract is the basis for a good contractor
Home renovations continue to be a popular topic in Winnipeg and across the country. The fact our city has the third-oldest housing stock in the country (behind only Halifax and Montreal) generally translates into a need for renovations.
More Manitobans indicated their intent to renovate their homes in the coming year than any other province in Canada. Some people look at renovating as an exciting new adventure; others see it as a headache. If you take the necessary steps to avoid certain pitfalls, it can be both exciting and rewarding.
First, remember the cheapest deal is not necessarily the best deal. This is a close-knit community, so everyone knows someone who knows someone who is handy with a hammer. That someone may also be willing to do the job on the side for cash, no questions asked. Just think of the money you can save by not paying PST and GST. You'll save even more by not taking out permits, fiddling with cumbersome contracts or worrying about insurance.
Bad ideas all around.
Just as you're hopefully utilizing the services of a professional for medical and financial matters, you should also consult a professional when it comes to home renovations.
The RenoMark logo is your sign of professionalism and confidence. The RenoMark program is nationally recognized by the Canadian Home Builders Association and is now operating in six provinces. Manitoba was actually the first province to adopt RenoMark.
A RenoMark renovator provides a detailed written contract for all jobs. Why is this important? If you don't have a contract, you don't have any control over the scope of work to be done. Furthermore, when the job is finished, you don't have any proof the job was ever done. If there's a problem with materials or labour, you're left holding the bag -- your "contractor" never officially existed.
A RenoMark renovator takes out all applicable licences and permits and carries $2 million in liability insurance. Why is this important? If you don't take out the necessary permits, the job never legally happened. In the event of an accident, fire, flood or some other problem, you may find that you are not insured for damage to or resulting from this work. As well, whoever takes out the permits is the prime contractor. Consult the RenoMark and MHBA websites for more information.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Showhomes open throughout the year
MANY people suffer from the misconception that new showhomes are only open twice a year, during the Spring and Fall Parades of Homes. Although those two events certainly receive the greatest publicity and feature 100 new homes at one time, various members of the Manitoba Home Builders Association proudly feature and staff their showhomes throughout the year.
We are currently at the midway point between the 2011 Spring Parade of Homes, which ran in March, and the 2011 Fall Parade of Homes, which will be featured from Sept. 17-Oct. 8. So, for those of you who require a new-home fix between Parades, now is an ideal time.
This spring featured terrific weather for March, and September is always nice. But you're guaranteed short sleeves and slip-ons in July and August, making your tour that much more pleasurable. Besides, it will give you a chance to check out the air conditioning in the home, and on most days parking near the various showhomes will be easy.
So, how do you know what's open and where to look?
The Parade of Homes magazine produced by the Winnipeg Free Press is a staple for all Parade-goers. Most people keep it handy and check off the homes and neighbourhoods they visit.
But, assuming you haven't kept your magazine from last March, not to worry. You can still access the Spring Parade magazine on the Manitoba Home Builders Association website at www.homebuilders.mb.ca. Although not all of the properties featured in the spring are still showhomes, it will bring you back to the builders and subdivisions that you frequented in March.
From there, you have a variety of options. You can download the map on page 41 and visit the neighbourhoods that interest you, stopping in at the various showhomes on display. On pages 42-67, all of the Spring Parade showhomes are listed. Simply make note of those builders whose homes you're interested in, go to the MHBA website and click the link that will take you directly to that builder's site. Many will have their showhomes listed along with the times they're open.
Even simpler, turn a couple of pages in today's paper and you'll see a number of ads for showhomes listed by MHBA builders.
No matter how you access them, the important thing to know is that the various showhomes are open for business and your viewing and visiting pleasure. Take your time, visit the models and locations that catch your fancy, talk to the sales representatives and enjoy the introduction to your next new home.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Winnipeg among best economic performers
WINNIPEG is one of the best economic performers in Canada, according to a recent report by the Canadian Imperial Bank of Commerce.
The report, called Canadian Cities: An Economic Snapshot, looked at 25 major urban centres in Canada and assessed their economic performance. Toronto was ranked at the top, but Winnipeg was not far behind at No. 3.
The reasons listed for our city's high ranking included strong population growth, above-average employment gains, low unemployment rates, low consumer and business bankruptcy rates and a strong housing market.
A quick review of some charts shows that Winnipeg ranks sixth in terms of population growth over the past year, attributed to aggressive immigration policies and the desire of many who once moved away to return home.
Our unemployment rate is the absolute lowest in all of Canada, with jobs waiting to be filled. Our consumer and business bankruptcy rates are both the fourth-lowest in Canada, MLS unit sales and average prices continue to rise, while new-home starts remain consistently good.
There's also a strong correlation to the residential construction industry, which is responsible for 14,200 jobs in Winnipeg and facing an imminent shortfall of thousands more. On numerous occasions, we've cited the need for new entrants into the construction industry. Our population growth has resulted in a need for housing of all sorts, from government-initiated social housing to rental, resale new-home construction.
Our city's lack of rental units and extreme seller's market for resale housing are strong indicators for entry-level housing demand. Our strong new-home market and subdivision growth suggest a great number of people want a new home in a new neighbourhood. The extremely low bankruptcy rate further promotes consumer confidence.
When we talk about an economic snapshot of Winnipeg, we're also talking about an economic snapshot of the residential construction industry. One is a reflection of the other. When one grows and prospers, the other moves with it.
We have much to be proud of in Winnipeg, and this 'good news' report gives us additional reason.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Looking for a subdivision? Choices abound
YOU know how sometimes we see something so often that we fail to appreciate just how amazing it is? That happens to me sometimes when I look at the subdivision guide within the Saturday Homes section. Although I always read the newspaper cover to cover, the beautiful weather of the long weekend had me looking more carefully at this guide.
Forty-nine listed subdivisions! That's an amazing number. I realize that only 19 had actual listings on the page, but 49 is an astounding amount of choices from which to select a location of a new home.
Sixteen of the 49 or almost one-third are outside the Perimeter Highway, with most being beyond the northeast quadrant. What a perfect opportunity for a Sunday afternoon drive to look at new neighbourhoods. However, don't neglect Stone Ridge Meadows to the northeast, Kingswood South in LaSalle in the southwest, Niverville, Lorette and Steinbach in the southeast and Oakbank directly east.
Within the city, five subdivisions are in the southeast quadrant, with established neighbourhoods such as Royalwood, River Park South and Van Hull Estates being featured along with Sage Creek, one of the newer and more popular subdivisions.
In the northeast quadrant, there are eight subdivisions listed. Popular Parade of Homes destinations such as Harborview South, Canterbury Park, Heartstone Estates and Kildonan Green remain locations of choice for those searching for a new home in that area.
In the northwest, there are eight subdivisions with the continued expansion of Amber Trails being the most prominent. The continuing development of Centreport is going to make this quadrant even more interesting in the coming years.
Finally, in the southwest quadrant, there are 12 subdivisions listed. Many are single listings for condominium locations, a feature growing rapidly in popularity, with South Pointe and Bridgwater Forest being the mainstays in larger subdivisions.
So, after reading this column, don't forget to look above at wide variety of subdivisions listed for your consideration for the location of your new home. The choice is yours.
Mike Moore is president of the Manitoba Home Builders' Association.