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Energy upgrades help new buyers and homeowners save some green
ADVICE Author: Caroline Lennox
When the cold weather strikes and you notice drafty windows and increasing utility bills, it may be time to think green.
Upgrades to improve your home's energy consumption can give you immediate savings, add significant value to your home, and help reduce the strain on our planet. 
If you are thinking green at your house, consider the following tips for making those improvements payoff:
1. Take advantage of energy-saving incentive programs. Until March 31, 2012, you could receive up to $5,000 in rebates to make your home more energy-efficient as part of the federal government's ecoEnergy Retrofit program. Visit http://oee.nrcan.gc.ca/corporate/1513 to learn all the details. Be sure to also check out the list of provincial and municipal incentives that might also apply to your project.
2. Get a rebate on your mortgage insurance. New homebuyers and existing homeowners may qualify for a 10 per cent mortgage insurance refund through the Canada Mortgage and Housing Corporation (CMHC) and Genworth Financial. Let's say you're looking at a home valued at $350,000, and you make a downpayment of 5%, paying $9,144 in mortgage insurance premiums (2.75%). You then undertake several renovations that improve your home's energy efficiency by the required amount, which may qualify you for a cash refund of $914. In addition, if you extended your amortization to 30 years, you can have the longer amortization premium waived. For example, the usual premium of .20% for a 30- year amortization would give you a savings of $700 on a $350,000 mortgage.
3. Consider your resale value. When deciding what improvements to focus on, keep in mind that some renovations add more to the resale value of your home. According to the Appraisal Institute of Canada, a furnace or heating system upgrade can deliver a payback range of between 50 and 75 per cent of the reno costs. Meanwhile, a roof shingle replacement would likely add less value with a range of 25 to 75 per cent.
4. Build the cost into your financing. Instead of racking up credit card bills or selling investments to pay for efficiency upgrades, consider rolling renovation costs into your mortgage. A "purchase plus improvements" mortgage covers the sale price of the home, plus any renovations that would increase the value of the property. For current homeowners, these mortgages are also available as a refinancing option. In the current low-rate environment, this can be a cost-effective way to make your home more energy efficient.
For most Canadians, owning a home is their biggest financial responsibility, and making improvements to that home is a big decision. As a mortgage expert, Caroline can guide you through the process and help ensure that any energy-efficient upgrades you choose will be well worth the investment. Call 800-757-0412 or text 250-415-9555 today
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Contact Information | Invis - Canada's Mortgage Experts |
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| Name: |
Caroline Lennox
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| Company: | Invis - Canada's Mortgage Experts |
| City: | Victoria |
| Province: | British Columbia |
| Country: | Canada |
| Phone: | 800-757-0412 |
| Email: | |
| Website: | http://www.clmortgages.com |
