RESOURCES

An Energy Efficient Mortgage can help you make your home more energy efficient today

In an attempt to make homes more energy efficient, CMHC (Canada Mortgage and Housing Corporation) has added an energy efficient mortgage when purchasing or renovating your house to make it more energy efficient. If you use CMHC insured financing to purchase an energy efficient home or renovate your existing home to make it more energy-efficient, a 10% refund on the Mortgage loan insurance premium may be available. There is also the flexibility of extending the amortization, up to 35 years, without a premium surcharge.

In order to qualify for renovating your existing home to make it more energy efficient, there are a few steps that you need to go through.

First you need to contact an NRCan qualified energy advisor so that they can let you know of your current energy rating for your home. The energy advisor will also give you a list of recommendations to increase the energy rating in your home.

So what exactly is a NRCan Qualified Energy Advisor looking for?

• The home is efficient and free of leaks. Specifically, this is called a building energy envelope, which is the area surrounding the home that effects energy usage. To determine this, a complete inspection is required, and sometimes they will even take infrared photos to see invisible energy leaks. The actual frame and construction of the home, the ducts inside the home, windows, doors, insulation, building materials, roof, basement, are all examples of what would be inspected.
• HVAC operation is efficient. The heating and cooling systems should be properly sized and installed correctly to efficiently heat and cool the living space.
• The exterior of the home. This includes the direction the home is facing, tree placement and landscaping.

Once you have received your current energy rating, the next step is speaking with your financial lender about a CMHC insured refinance.

The next step would be to hire a contractor to fix all of the issues in the house that were recommended in the report. It is important to hire a contractor that is experienced in working with energy efficient products, as they will have the most knowledge about energy efficient renovations. A contractor that doesn't have any experience working in energy efficiency renovations, may just cost more money if the renovations aren't done correctly.

After the recommended energy efficient renovations are completed, the energy advisor will re-assess your home. If the test results show that the energy rating has improved by at least 5 points, and achieved an overall rating of at least 40, the 10% premium refund may be available. The final step is to apply for the refund through CMHC.

There are many benefits in improving the energy efficiency of your home. You will enjoy more comfort, long-term savings on energy bills and the confidence knowing that you are doing your part to make the world a greener place.

To learn more about the process of getting an energy efficient mortgage, go to http://www.cmhc.ca/en/co/moloin/moloin_008.cfm

Many believe renovating your home can add resale value to it, but it depends on the project.

According to Remodelling Magazines 19th Annual report, the top ten most profitable home improvement projects are:

Siding Replacement

• Average Job Cost: $9,134
• Resale Value: $7,963
• % of Project Cost Recouped: 87.2%

It might come as a surprise that vinyl siding ranks so high on this list, but it makes sense when you think about it. Siding replacement covers the most square footage of your house, and therefore can completely change the exterior look of your house. You can make an old house look new again with new siding. More and more people are updating the look of their older home by adding vinyl siding or rock siding, to give it a more expensive look. Replacement siding can also have a dramatic effect on energy savings.

Window Replacement

• Average Job Cost: $11,040
• Resale Value: $9,416
• % of Project Cost Recouped: 85.3%

Window replacement has become more popular because it can not only update the look of your home, but save you energy costs in the long run as well. New windows stop air from leaking in and out of the home. Vinyl windows are far and away the most popular for homes, thanks to their durability, attractiveness, and energy efficiency.

Minor Kitchen Remodel

• Average Job Cost: $17,928
• Resale Value: $15,278
• % of Project Cost Recouped: 85.2%

An updated kitchen can completely change the look of your interior. Since the look and functionality of the main cooking area is important to many homeowners and buyers, a kitchen remodel has good resale value. It's important to keep in mind though, that the amount you spend on a kitchen remodel should be in line with the cost of the house. For example, you don't want to spend your whole budget updating the kitchen when there is other work needing to be done as well. New appliances can really update the look of a kitchen, plus help you save money in the long run, as most new appliances help conserve energy.

Bathroom Remodel

• Average Job Cost: $12,918
• Resale Value: $10,970
• % of Project Cost Recouped: 84.9%

An updated bathroom should include updated fixtures first, and incorporate usability. You want to remodel the bathroom so that the space is used to the full advantage. Counter space, storage, and lighting are all important in a bathroom. It's also important to keep in mind the number of bathrooms in the house. Ask yourself; is this the main bathroom that a family of 5 will be using? As a rule of thumb, bathrooms shouldn't cost any more than 5 percent of the house value.

Two-Story Addition

• Average Job Cost: $105,297
• Resale Value: $87,654
• % of Project Cost Recouped: 83.2%

A two-story addition adds square footage to the house. This is generally a good investment when more space is needed. A one-bedroom house can gain a lot of value with a two-story addition because you can build a second or third bedroom.

Major Kitchen Remodel

• Average Job Cost: $54,241
• Resale Value: $43,603
• % of Project Cost Recouped: 80.4%

The rule for deciding a major kitchen remodel is to do approx 15% of the value of the house. It's important to consider the size of your home and neighbourhood, as the improvements from the project may add too much value to the neighbourhood the house is located in, reducing the return on your investment.

Attic Bedroom Remodel

• Average Job Cost: $44,073
• Resale Value: $35,228
• % of Project Cost Recouped: 79.9%

Similar to a second floor addition, adding more bedrooms can add great value to the house. The number of bedrooms is always very important for growing families, and when reselling the home.

Basement Remodel

• Average Job Cost: $56,724
• Resale Value: $44,685
• % of Project Cost Recouped: 78.8%

A finished basement can add great value to the home because it creates more living space without adding to the square footage of the home.

Deck Addition

• Average Job Cost: $14,728
• Resale Value: $11,307
• % of Project Cost Recouped: 76.8%

A deck can add great exterior appeal to the home. Many people see great value in having a deck on their home.

Bathroom Addition

• Average Job Cost: $28,918
• Resale Value: $21,607
• % of Project Cost Recouped: 74.9%

Adding a bathroom can add great value to a house. Especially in resale opportunities, having a second or third bathroom is what many homebuyers are looking for.

Although both single and double hung windows have two stacked windowpanes, the single hung style only allows you to open the bottom window by sliding it upwards. Double hung windows allow you to open either the bottom (sliding upwards) or top pane (sliding downwards).

The simplified function of single hung translates into lower manufacturing costs and a more affordable choice for your home. So for the budget conscious that like the look of a vertically stacked window, single hung is definitely the way to go. If, however, you have small children or pets you may opt for the safer, double hung option which allows you to open the top pane only, keeping your kids and animals safely inside.

And enjoy the highest return on home improvement investment when you sell.

Vinyl Siding is the most affordable choice for new siding, and depending on colour, type, quality, thickness and brand can be as low as $4 per square foot.

Vinyl siding is available in a slew of colours and textures. It's easy to clean and maintain and it doesn't peel, flake, dent, rot or rust. It even adds extra insulation to make your home more energy efficient. And, although no one likes to think about it, if your house ever caught on fire, vinyl has a slower burn rate than wood siding and can give you extra time to escape.

FYI: A standard-sized BC Box style house averages $13,000 for newly installed vinyl siding from Quality Home Improvements.

Not much really.

'Environmentally friendly' and 'energy efficient' go hand-in-hand.

Here are 4 simple improvements for a more Earth-friendly abode.

1. Insulate and Seal. Remember the old saying your mom would yell when you left the door open? "Hey, I'm not paying to heat the outdoors, shut the door!" Well, that's what you're doing if you've got air leaks around your windows and doors. To keep your heat and cool indoors you'll want to add insulation to your attic, basement or crawlspace and wall cavities. And if new, energy-efficient windows aren't in the budget right now, then you should also caulk around all windows and electrical outlets.
2. Energy-Efficient Lighting. A single compact fluorescent bulb prevents 500 pounds of carbon dioxide from entering earth's atmosphere over the course of its life. So why no change out your regular incandescent light bulbs for low-wattage compact fluorescents? Also, instead of leaving porch and garage lights on all night, consider motion-sensor lights. They only come on when you need them, notify you of visitors and save energy.
3. Wrap Your Water Heater. We buy coats for our dogs, so why not an insulating jacket for our water heater? All kidding aside, there are special insulating blankets or jackets made just for your water heater. They aren't expensive and they're readily available at any home centre. Make sure your water heater's set no higher than it's optimum energy efficiency temperature of 120 degrees and simply wrap the tank, securing the jacket with duct tape. Enjoy the savings on your next energy bill!
4. Buy Energy-Efficient Appliances. Appliance efficiency has come a long way in a short time. When it's time to replace a dying appliance, make sure you find one with an Energy Star label and here's a tip...if you're looking to sell your home sometime down the road, leave the Energy Star label on the appliance! It'll help sell your home.