In the last decade, climate change and energy efficiency have become top of mind for many Canadians. From wanting to do our part by recycling to making our home as energy efficient as possible, there are so many benefits to being environmentally and energy conscious.

If you are looking to cut costs or simply want to reduce your eco-footprint, here are some great ways to cut your energy costs:

• Get a Smart Thermostat: A pretty easy installation, a smart thermostat can help you better manage your in-home temperature. Whether you opt to install a basic programmable thermostat or try Google’s Nest, which learns from you and works to predict which temperatures you prefer and when, getting a read on your in-home temperature can help you better manage your energy usage.

• Look for Drafty Spots: When it comes to heating your home, it can quickly become a wasted effort and results in extra costs if you have drafts in your home. In addition to windows and doors, you should also seal any folding attic stairs, add a fireplace plug to seal the damper and install a dryer vent seal to reduce drafts in your laundry room.

• Swap to LEDs: Most of us are already using LED bulbs throughout our home. If you aren’t yet, now is the time to make the switch! LED bulbs use 15% less energy than an equivalent incandescent, which can save you a ton of money each month especially in larger homes.

• Turn Down Your Water Heater: While sometimes nothing beats a good scalding shower, you don’t want to be burned with a high energy bill. Did you know if you knock down that temperature gauge by just 10 degrees, you can save 3% to 5% on your bills each month!?

• Examine Your Appliances: Since 1992, ENERGY STAR® has been backing energy efficient appliances and products, helping consumers make the right choices. Some of the least green appliances in your home are your dishwasher, washing machine, dryer and refrigerator and, if you don’t currently have Energy Star certified versions of these machines, swapping to them is a surefire way to reduce your monthly expenses.

• Can’t afford new appliances? Here are some other tips and tricks to help make them more efficient in the meantime:
  
  

  • Dishwasher: Use a citric acid-based cleaner in an empty cycle to rid your dishwasher of excess soap and calcium buildup that may be causing your machine to work harder.
    
    Washing Machine: Maximize energy by stuffing your machine to the brim whenever possible as washing machines typically use the same amount of energy regardless of load size.
    
    Dryer: For starters, ensure you are always cleaning out your lint filter to increase air circulation. In addition, keep an eye on the outside exhaust and clean when needed to reduce drying time and save energy.

  • Refrigerator: While most of us are more concerned with the food inside our fridges than the parts, it is important to check your condenser coils. Over time, dirt, food particles and dust can collect and reduce the efficiency. Another tip is to set your refrigerator to 2-3 degrees Celsius.

• Close The Blinds: When the temperature starts heating up, it is important to close the blinds and drapes to prevent the sun from beating in and warming up your home. The excessive heat makes your air conditioner work overtime causing your energy bills to skyrocket.

In addition to the cost savings and environmental benefits of improving your energy efficiency, CMHC also has a rebate available! The CMHC Eco Plus refund can provide a 25% partial premium refund if you’re CMHC insured and buying or building an energy-efficient home! Click here for more details.

Published by DLC Marketing Team

October 15, 2024

Creating a pet-friendly home involves considering the comfort, safety, and well-being of your furry friends. Here are some features to consider:

• Durable Flooring: Choose scratch-resistant and easy-to-clean flooring like hardwood, laminate, or more durable tile options. Avoid carpets if possible, or choose pet-friendly carpeting that’s stain-resistant.

• Pet-Friendly Fabrics: Choose furniture and upholstery made from pet-friendly fabrics like leather or microfiber that are durable and easy to clean. This helps in case of accidents or shedding.

• Pet-Safe Plants: Select indoor plants that are non-toxic to pets, such as spider plants, Boston ferns, or palms. Keep toxic plants out of reach or opt for artificial plants.

• Designated Pet Areas: Create designated spaces for your pets, such as a cozy corner with a bed or a built-in nook under the stairs. This gives them a sense of security and their own space.

• Easy Access to Outdoors: Install a pet door or create a pet-friendly exit to the yard, allowing your pets to go outside and play freely.

• Secure Fencing: Ensure your yard has a secure fence to prevent your pets from wandering off and to keep them safe from potential dangers.

• Built-in Feeding Stations: Incorporate built-in feeding stations or cabinets to store pet food and supplies, keeping them organized and out of reach from curious pets.

• Wash Station or Mudroom: Include a designated area near the entrance for cleaning muddy paws or bathing your pets, with easy-to-clean surfaces and storage for grooming supplies.

• Integrated Pet Technology: Consider installing smart pet feeders, water fountains, or cameras to monitor your pets remotely and ensure they are comfortable and well-fed when you’re away.

By incorporating these features into your home design, you can create a safe, comfortable, and enjoyable environment for both you and your pets.

Central bank announces jumbo cut

By Fergal McAlinden

23 Oct. 2024

The Bank of Canada has slashed its benchmark rate by 50 basis points, announcing the oversized cut amid continuing signs of a sluggish economy and plunging inflation.

The central bank revealed on Wednesday morning that it had cut its trendsetting interest rate to 3.75%, its fourth rate reduction in a row and the biggest single cut since the beginning of the COVID-19 pandemic more than four years ago.

Expectations of a larger-than-usual cut surged after overall inflation dipped below the Bank’s 2% target in September and stronger-than-expected jobs figures for the month failed to quell fears of a further economic slowdown.

The Bank’s last 50-basis-point cut took place in March 2020, when it trimmed rates to a rock-bottom 0.25% as the economy ground to a halt in the face of a looming pandemic.

Inflation has posted a big drop since hitting a four-decade high of 8.1% in June 2022, coming in at 1.6% last month (although Dominion Lending Centres chief economist Sherry Cooper told Canadian Mortgage Professional that was skewed somewhat by a dramatic drop in gasoline prices).

The economy probably only saw marginal growth in the third quarter, according to Cooper – and with unemployment also expected to tick higher in the months ahead, she signalled that today’s 50-basis-point cut was “the right thing to do.”

After announcing a salvo of rate cuts in 2022 and 2023 to tamp down inflation, the central bank has pulled the trigger on three consecutive 25-basis-point drops in June, July, and September before today’s move.

That’s provided welcome relief for scores of homeowners who’d seen borrowing costs spike during the Bank’s series of hikes – and also improved the outlook for hopeful homebuyers.

The Bank is scheduled to make its final interest rate decision of the year on December 6, with market watchers expecting cuts to continue in the coming months – and it indicated its view that the policy rate needs to fall further if the economy continues to evolve as currently forecast.

Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.

Narrow window of affordability set to close in mid-2025

By Fergal McAlinden

15 Oct. 2024

The Bank of Canada is in the midst of an interest-rate cutting cycle, and plenty of would-be homebuyers are staying on the fence in anticipation of even lower rates down the line. But many of those waiting are missing a big opportunity, according to a top Ontario broker, to snag low-rate options already on offer.

Nick L’Ecuyer (pictured), principal broker and founder at the Barrie-based Mortgage Wellness, told Canadian Mortgage Professional that hype around central bank rate cuts had drawn attention away from diving bond yields in recent months that have seen fixed mortgage rates plunge.

That’s allowed first-time homebuyers on insured mortgages to take advantage of five-year fixed rates as low as 3.94% in October, a big slice off best prime rates that – with a generous discount – might hover around the 5.7% mark.

Furor around the Bank of Canada’s rate-cutting timeline and a flurry of recent mortgage qualification rule adjustments by the federal government are seeing many borrowers look ahead to what they might be able to afford in future, according to L’Ecuyer, rather than focusing on what’s available now. “All of these people that are sitting on the sidelines saying, ‘I’ve got to wait for rates to come down’ – I mean, they’re already here,” he said.

“People just don’t know it, because they’re so blinded by the Bank of Canada rate decisions and all the talk about when rates are going to come down, and how is the economy, and the government’s aid, and these impending mortgage renewals. That’s all the focus.”

New mortgage measures set to boost housing market demand

Another reason now is a good time to get into the market, L’Ecuyer believes: activity is likely to ramp up in 2025, sparked by lower prime rates and the government’s recent measures on mortgage amortizations and the insured mortgage cap.

The moves were billed by the government as an effort to make homeownership accessible to more Canadians, especially those buying for the first time, and help ease some of the affordability woes facing those who’ve been priced out of the market to date.

That means those who can currently afford to buy now would be best advised to push ahead with a move, he said. “There’s a whole ton of very smart people who are capturing all these great opportunities in the market that are brought to us by stagnant sales, lower prices, tons of inventory, and great fixed interest rates,” he explained.

“I wonder how long it’s going to be until people start to realize that there’s opportunity: ‘Hey, I don’t have to go into multiple offers. I can get a condition on financing, a condition for a home inspection, and a great interest rate.’”

When will Canada’s housing market begin to gather pace again?

Two recently announced mortgage rule changes by the federal government – expanded access to 30-year amortizations and a hike in the insured mortgage cap to $1.5 million – are set to come into effect on December 15.

The time between that date and the summer of 2025, L’Ecuyer said, represents the likely window buyers will have to lock in the most affordable mortgage possible before housing market activity, and home prices, start to ramp up.

The ability of first-time homebuyers to tap into 30-year amortizations could materially improve affordability for scores of new buyers, especially outside Canada’s priciest urban markets.

In Barrie, L’Ecuyer said, buying a $600,000 townhouse last year in Barrie on a 25-year amortization and high interest rates would see a monthly mortgage payment of almost $4,000 a month – significantly above the average rent on those properties of around $2,600.

Now, with a 3.94% five-year fixed rate and 30-year amortization, the monthly payment would plunge to $2,900. “If you say to me that I can own it for $2,900 or rent it for $2,600, I’m going to own it, pay it down, it’ll appreciate,’” he said. “That’s when things are going to start to warm up: when people realize that affordability is back.”

Over the past 25 years, interest rates in Ontario have fluctuated significantly, influenced by economic cycles, inflation control measures, and global events. For an overview:

- Fixed Mortgage Rates: Historically, fixed mortgage rates have generally ranged from around 3.0% to 7.0% depending on the time period and term length. For example, in the early 2000s, 5-year fixed mortgage rates were above 7%, but by the 2010s, they had decreased significantly, reaching as low as 3.28% in 2021. As of 2024, fixed rates are currently averaging around 4.74% from major lenders.

- Variable Mortgage Rates: Variable rates have generally been lower than fixed rates during periods of economic stability but tend to fluctuate more with changes in the Bank of Canada’s policy rates. Over the last 25 years, these rates have ranged from approximately 2% to over 6%. Currently, variable rates are averaging around 6.02%, having risen significantly due to recent interest rate hikes by the Bank of Canada.

The long-term trend shows that fixed rates tend to offer stability, especially during periods of economic volatility, whereas variable rates can be more attractive in lower interest rate environments but are riskier during rate hikes.

If you're trying to predict future rates, the consensus suggests a potential decrease in 2024 as inflation cools and the Bank of Canada aims to stabilize the market. However, for now, fixed rates remain more attractive than variable rates.

From: Department of Finance Canada

News release

September 16, 2024 - Ottawa, Ontario - Department of Finance Canada

Canadians work hard to be able to afford a home. However, the high cost of mortgage payments is a barrier to homeownership, especially for Millennials and Gen Z. To help more Canadians, particularly younger generations, buy a first home, new mortgage rules came into effect on August 1, 2024, allowing 30 year insured mortgage amortizations for first-time homebuyers purchasing new builds.

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, today announced a suite of reforms to mortgage rules to make mortgages more affordable for Canadians and put homeownership within reach:

• Increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024, to reflect current housing market realities and help more Canadians qualify for a mortgage with a downpayment below 20 per cent. Increasing the insured-mortgage cap—which has not been adjusted since 2012—to $1.5 million will help more Canadians buy a home.

• Expanding eligibility for 30 year mortgage amortizations to all first-time homebuyers and to all buyers of new builds, effective December 15, 2024, to reduce the cost of monthly mortgage payments and help more Canadians buy a home. By helping Canadians buy new builds, including condos, the government is announcing yet another measure to incentivize more new housing construction and tackle the housing shortage. This builds on the Budget 2024 commitment, which came into effect on August 1, 2024, permitting 30 year mortgage amortizations for first-time homebuyers purchasing new builds, including condos.

These new measures build on the strengthened Canadian Mortgage Charter¸ announced in Budget 2024, which allows all insured mortgage holders to switch lenders at renewal without being subject to another mortgage stress test. Not having to requalify when renewing with a different lender increases mortgage competition and enables more Canadians, with insured mortgages, to switch to the best, cheapest deal.

These measures are the most significant mortgage reforms in decades and part of the federal government’s plan to build nearly 4 million new homes—the most ambitious housing plan in Canadian history—to help more Canadians become homeowners. The government will bring forward regulatory amendments to implement these proposals, with further details to be announced in the coming weeks.

As the federal government works to make mortgages more affordable so more Canadians can become homeowners, it is also taking bold action to protect the rights of home buyers and renters. Today, as announced in Budget 2024, the government released the blueprints for a Renters’ Bill of Rights and a Home Buyers’ Bill of Rights. These new blueprints will protect renters from unfair practices, make leases simpler, and increase price transparency; and help make the process of buying a home, fairer, more open, and more transparent. The government is working with provinces and territories to implement these blueprints by leveraging the $5 billion in funding available to provinces and territories through the new Canada Housing Infrastructure Fund. As part of these negotiations, the federal government is calling on provinces and territories to implement measures such as protecting Canadians from renovictions and blind bidding, standardizing lease agreements, making sales price history available on title searches, and much more—to make the housing market fairer across the country.

Quotes

“We have taken bold action to help more Canadians afford a downpayment, including with the Tax-Free First Home Savings Account, through which more than 750,000 Canadians have already started saving. Building on our action to help you afford a downpayment, we are now making the boldest mortgages reforms in decades to unlock homeownership for younger Canadians. We are increasing the insured mortgage cap to reflect home prices in more expensive cities, allowing homebuyers more time to pay off their mortgage, and helping homeowners switch lenders to find the lowest interest rate at renewal.”

- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Everyone deserves a safe and affordable place to call home, and these mortgage measures will go a long way in helping Canadians looking to buy their first home.”

- The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities 

Quick facts

• The strengthened Canadian Mortgage Charter, announced in Budget 2024, sets out the expectations of financial institutions to ensure Canadians in mortgage hardship have access to tailored relief and to make it easier to buy a first home.

• Mortgage loan insurance allows Canadians to get a mortgage for up to 95 per cent of the purchase price of a home, and helps ensure they get a reasonable interest rate, even with a smaller down payment.

• The federal government’s housing plan—the most ambitious in Canadian history—will unlock nearly 4 million more homes to make housing more affordable for Canadians. To help more Canadians afford a downpayment, in recognition of the fact the size of a downpayment and the amount of time needed to save up for a downpayment are too large today, the federal government has:

  • Launched the Tax-Free First Home Savings Account, which allows Canadians to contribute up to $8,000 per year, and up to a lifetime limit of $40,000, towards their first downpayment. Tax-free in; tax-free out; and,

  • Enhanced the Home Buyers’ Plan limit from $35,000 to $60,000, in Budget 2024, to enable first-time homebuyers to use the tax benefits of Registered Retirement Savings Plan (RRSP) contributions to save up to $25,000 more for their downpayment. The Home Buyers’ Plan enables Canadians to withdraw from their RRSP to buy or build a home and can be combined with savings through the Tax-Free First Home Savings Account.