It has always made sense to run your home as efficiently as possible, energy wise. But the stakes are higher these days. Gas and electricity prices are on the rise. Will they go higher? Oh, you bet!

Buying energy efficient appliances, sealing up your windows and doors, getting better windows and doors, insulating your roof and basement, upgrading your furnace, turning down your water heater, getting a tankless water heater: all these household changes mean dollar savings every month when you get your energy bills.

These savings add up fast. Replace five of your most commonly used light fixtures or bulbs with Energy Star rated versions and save $70 a year. A new Energy Star window will save you $20 to $95 dollars a year in wasted heat and cooling. Install a programmable thermostat (and program it to work around when you work and sleep) and save as much as $180 a year. Switching to Energy Star appliances will save you between $300 and $600 a year (the fridge is the big one: you save $100 or more a year by replacing an old one and even more if you chuck the basement beer fridge).

For more specifics on what you would save, check out Natural Resources Canada’s Energy Star calculator.

But turning your home into an energy smart zone has benefits beyond saving on gas and electricity. Here are a few benefits you might not have considered:

Your mortgage

Energy efficient mortgages (EEMs) give you financial incentives to either buy an energy efficient home, or upgrade your existing or newly bought home to make it greener.

The Canadian Mortgage and Housing Corporation (CMHC) has a great plan for first time homebuyers. CMHC is most famous for offering mortgage insurance for people with too-small down payments for their first home. Under the organization’s green mortgage program, you can get a 10 per cent refund on your mortgage insurance if you buy a green home or make energy efficient renovations. You can also extend your amortization up to 30 years under the program (why you’d want to do that we don’t know, longer amortizations cost you money in the long run!).

Meanwhile, private lenders have programs too. RBC’s Energy Saver Mortgage for instance, offers $300 back when you get a home energy audit. (An audit involves a trained expert going through your home to identify where your home is inefficient and suggest where you can make changes to save money and energy loss.) TD Canada Trust runs a Green Mortgage that offers you 1 per cent off the posted rate of a five year fixed mortgage, gives you up to 1 per cent cash back on your mortgage and donates $100 to the TD Friends of the Environment Foundation when you buy Energy Star products for your home or install solar panels.

Resale value

Kitting up your house with green changes big and small will one day impact your home’s attractiveness on the market. (Case in point: a recent build in my neighbourhood went for a startling price because the house was going to cost just $500 a year to heat.) Buyers are keen to walk into a house that’s been fully insulated has the most energy efficient appliances installed and has an appealing energy bill to back it up. There’s a growing trend among real estate agents themselves to think green and these types of professionals will be drawn to buying or selling your home.

Rebates

If you do it right, you can get hundreds or even thousands of dollars back from your eco-friendly home changes. The biggest deal in rebates right now is the newly relaunched federal EcoEnergy Retrofit Program. It requires a home audit but gives you as much as $5,000 back for making home improvements such as insulation and new windows or furnace. It runs just until next March, and you need to make the upgrades before that time to get the money back.

As well, most provinces have a wide range of rebate programs for doing things like taking away old fridges, giving you money back for new Energy Star appliances, offering rebates on windows and giving you money for switching to a tankless water heater. Natural Resources Canada has a pretty up-to-date list on the current programs available, but look to your province’s office of energy efficiency and hydro corporation for more information to be sure you catch all the deals.

When you spruce up your home to not just look good but run more efficiently, you can save a lot of money. Some of it right away, more over time. And it’s also just simply the right thing to do if you can afford it.

Diane
Writer for RateSupermarket.ca

It provides some great information on the volumes of mortgages issued by banks and other lenders as well as the market share for CMHC approved mortgages in 2009. Here are some of the stats:

NHA and Conventional Mortgage Loans Approved by Lending Institutions, by Type of Lender

Other includes: credit unions, caisses populaires, other smaller institutions and privately-insured loans in some areas.

From this data we can see that:

NHA and Conventional Mortgage Loans Approved by Lending Institutions, by Type of Lender (Dwelling Units)

Other includes: credit unions, caisses populaires, other smaller institutions and privately-insured loans in some areas.

From this data we can see that:

Average NHA and Conventional Mortgage Loans Approved by Lending Institutions, by Type of Lender

If we then take the loan values divided by the number of units we can look at the average loan values as follows.

Residential Mortgage Credit by Lending Institutions, 1984-2009

The report also included interesting data on the volumes of mortgages issued by the different lenders.

Residential Mortgage Credit by Lending Institutions, 1984-2009, Market share

We can also look at their market share over the years:

You can see that this table shows that the Chartered Bank’s market share dropped 6% year over year in 2009. Also the chart below shows the market in 1999

Versus the market in 2009, as the Chartered Bank’s market share dropped 10%

CMHC’s latest report on Canadian housing starts was released this morning and showed that the seasonally adjusted annual rate of housing starts in April 2010 was up 2,500 units or 1.3% over March 2010 to 201,700 units.

This is the latest evidence that Canada’s housing market is still doing exceptionally well and driving Canada’s economic recovery, and comes on the heels of Bank of Canada Governor Mark Carney’s comment last month that he expects the housing market to cool over the next few months as mortgage rates increase and HST comes into effect on July 1. I guess the cooling just didn’t start in April.

April’s provincial seasonally adjusted annual rate of urban starts housing start saw increases as follows:

• +16.4% in British Columbia
• +6.7% in the Prairie regions
• +4.5% in Ontario
• +1.1% in Quebec

The CMHC (Canadian Housing and Mortgage Corporation) which provides mortgage insurance to Canadians with less than 20% deposits on home purchases, completed an on-line survey of 2,507 recent mortgage consumers — all prime decision-makers — and the result is a unique perspective on attitudes and behaviours.

Their key findings include:

Mortgage Clients are Optimistic

An overwhelmingly high proportion of mortgage consumers (nearly 90%) believe that homeownership is a good long term investment and this optimism is fairly consistent across the country. Another indicator demonstrating confidence in the future is that almost 70% of purchasers are of the opinion that now is a good time to purchase a home in their community.

Confidence among mortgage consumers is also evident in their future moving intentions. Overall, about one-third of recent mortgage consumers anticipate leaving or selling their home in the next five years. Among this group, 87% state family and or personal circumstances (i.e. growing or decreasing family size, medical issues, or job transfer), or a general desire for change is main reason for selling or leaving.

Canadians are Astute Mortgage Consumers

Today’s mortgage consumers show what can be interpreted as a fairly high level of sophistication about the mortgage process and what it takes to carry a mortgage.

For example, 80% were at least aware of the existence of credit scores and one-third, at some time, and have actually contacted a credit agency to obtain their own score.

They also have a good understanding of the maximum amount of their gross (pre-tax) income that should be used to service housing costs and other debt. Nearly nine-in-ten (87%) reported that this level should be 40% or less of gross income.

Canadian mortgage consumers are relatively knowledgeable about the function and benefits of mortgage loan insurance (MLI). Nearly three-quarters (72%) recognize that MLI helps Canadians buy a home sooner with a smaller down payment and 76% believe that MLI provides an important benefit to the financial system.

Canadians Manage Their Mortgages Prudently

Several survey findings point to Canadians being careful in how they manage mortgage debt including:

Interestingly, as a means of reducing their amortization, 30% of mortgage consumers intend to use a combination of the mortgage features available to reduce their amortization.

Client Satisfaction Levels Still Relatively Strong

In 2009, the majority of mortgage consumers (78%) were satisfied with the service provided by either their lender or broker. Client satisfaction was also fairly consistent across all market segments. Compared to 2007, the proportion of those satisfied is down consistently by about five percentage points.

Overall, only a minority of respondents (14%) expressed any degree of dissatisfaction. The survey showed that getting the best rate or deal are the most important factors driving client satisfaction, cited by 57% of respondents.

Mortgage consumers were equally satisfied whether they used a lender or broker (79% lenders vs. 75% for brokers), but for slightly different reasons. For example, 22% of those using a broker indicated the main reason for their satisfaction was based on the ”service” provided, vs. only 11% for those using a lender. Conversely, those using a lender were nearly twice as likely to mention “a good relationship” as the basis for their satisfaction (22% for lenders vs. 12% for brokers).

In the majority of cases (76%) clients remained loyal to their existing mortgage lender. In the case of first-time buyers, 47% remained loyal to their existing financial institution. Loyalty was strongest among renewers at 90% (up from 83% in 2007). For the other three segments 2009 has seen a modest decrease in lender loyalty. This is most evident among first-time buyers where loyalty has fallen to 47% from 67% in 2007, likely a result of the increased use of brokers among first-time buyers. For repeat buyers and refinancers the decline has been more modest: from 63% in 2007 to 59% among repeat buyers, and from 71% in 2007 to 66% among refinancers.

First-time Buyers Increase Their Use of Mortgage Brokers

Survey results show that during the past twelve months about one-quarter of all mortgage transactions were arranged through the mortgage broker channel. Most notably, broker share among first-time buyers has increased to 44%, up from 35% in 2007. Among other market segments broker share has remained stable. In particular, broker share among those renewing their mortgage continues be relatively stable at 12%.

Demographically, brokers tend to do better among younger purchasers aged 25 to 34 years (42% share), and female purchasers (43% share).

Definitions

For the purpose of this survey, recent mortgage consumers are segmented as follows:

Refinancers — those who refinanced their home through a mortgage in the past 12 months.

It comes as no surprise that the Canadian Mortgage and Housing Corporation (CMHC) predicts a continued slow-down in the real estate and building markets in Canada for the second quarter 2009.

Remember that recession thing that’s wreaking havoc across the globe?

Well, the CMHC recently released its outlook on the second quarter of 2009 (April-June) and, if you’re in the mood for positive thinking, things are forecasted to turn around … in 2010.

Housing starts in Q2 of 2009 are expected to be 141,500 nationwide, while they’ll see positive growth by this time next year, to the tune of an additional 8,800 housing starts (150,300).

But, if you’re in a pessimistic mood and wonder how far Canada’s mighty real estate market has fallen, you’ll note 2008’s second quarter housing starts were 217,600 (and 227,800 in 2007’s Q2!), which makes 2010’s forecasted rebound a little less exciting.

But remember, a ray of hope is sometimes all that’s needed in these doom-and-gloom times of new housing starts across Canada, so try to take the positive out of this one.

The decline in housing starts in 2009 can be directly tied to the economic downturn. The fact they’re being compared to near record numbers of 2007 and 2008 certainly doesn’t help with appearances either. But one look at the employment rates across Canada will explain why fewer people are putting shovels into the ground in every province in 2009. Although more housing starts are expected in 2010, CMHC forecasts more people will be looking for work in every province next year as well.

Unemployment rates across Canada

(F) = Forecasted by CMHC

Unemployment figures from Statistics Canada

The next five years

The CMHC’s housing outlook also gave a five-year forecast (2009-2013) for each province’s housing start market, which generally reflects how the economy is expected to be performing during this period.

Alberta

The long-term housing outlook for 2009-2013 in the country’s richest province is not promising. A five-year housing boom – due to skyrocketing energy prices – has left Alberta with unprecedented new development, but with the economic downturn and oil selling for a third of what it did at its peak, there is a much lower demand for new housing. CMHC says the worst year will be 2009 and investment in the oil sands should increase as the world’s financial stability improves, aiding the ailing housing market.

British Columbia

An expected influx of new residents to the western-most province will put B.C.’s housing market back on track after 2009. As more people turn to the beauty and diversity of B.C.’s landscape, the demand for ownership and rental housing will increase, and as available units become scarce, the real estate market will improve.

Manitoba

Manitoba is expected to be the most consistent performer from 2009-2013, because of its diversified economy and general openness to migrants under the Provincial Nominee Program. After 2009, housing starts are anticipated to climb because of the improving economy, lower new home inventories and tightening resale market conditions.

New Brunswick

New Brunswick already has an economic plan in place, and it involves better connecting its cities, and the development of the energy sector around Saint John. The positive impact on the economy is expected by mid-2010, which will increase new housing construction in urban areas like Saint John, Fredricton and Moncton.

Newfoundland and Labrador

People may be able to stay on The Rock to make a good living over the next five years. After a decade of fleeing to the west for income, Newfoundland is focusing on energy and mining development to boost its economic output. There is also growing demand from seniors, a tighter rental market, a continuing shift towards medium-density housing, and government-assisted affordable housing initiatives, all of which will help keep the housing market flat from 2010 to 2013. On The Rock, even a flat market is a positive.

Nova Scotia

Nova Scotia is getting in on the offshore energy game. This investment in energy will stimulate the economy, while Halifax continues to prosper, with a positive economic outlook on the horizon. Housing starts are expected to improve by 2010 and continue afterward.

Ontario

A large part of Ontario’s economy is dependent on the auto industry, which is struggling mightily. As unemployment continues to rise as the economy scuffles, housing demand is low for both new and existing homes. A flooded resale market also means lower prices for buyers. If the economy turns around as expected by 2012, Ontario’s housing market should thrive again.

Prince Edward Island

The economy will improve on PEI from 2009-2013, as tourism, agriculture and fisheries remain its most important sectors supporting growth. The population also continues to grow, because of the number of aging residents and the provincial immigration program. Housing starts are expected to rise moderately by 2013.

Quebec

New home construction in Quebec will stay in line with household formation, as the economy is expected to grow moderately in the next five years. The real estate market will also shift from a sellers market to a more balanced level. Also, the decrease in the amount of people over 75, over the next few years, will also result in less retirement homes being built from now to 2013. New home building will decline, but still remain at relatively high levels when compared to recent history.

Saskatchewan

Saskatchewan’s growth will continue to be the strongest in Canada, as the resource sector continues to boom and investments in the province continue. Despite this, housing starts will slip below boom years of 2007 and 2008, but will stay above the number from five years previous. Builders will have to alter production to match heightened new home inventories, especially in the urban markets. Multi-family starts will be the majority of new builds, while low vacancy rates will result in increased rental units being built.

Forecasted new housing starts by province from 2009-2013

(F) Forecasted by CMHC

Source: CMHC

For more visit the CMHC’s second quarter outlook .

The announcement stated:

The Government of Canada today announced adjustments to the rules for government guaranteed mortgages aimed at protecting and strengthening the Canadian housing market. The new measures include:

Interestingly, the Financial Post reported some banks, including the Bank of Montreal and CIBC have quickly responded by removing the 40 year amortization mortgage from the market, while CIBC also now requires a minimum 5% downpayment.

Other banks to follow have included online bank ING Direct Canada, while Toronto-Dominion Bank said it is reviewing its mortgage offering, and Royal Bank of Canada and Bank of Nova Scotia, are expected to follow as well.

As a result of these changes, many people are expecting that there will be a huge rise in house sales as home buyers who don’t have a 5% deposit or need the longer amortization period in order to afford a house in high price areas such as Toronto, Calgary and Vancouver will be rushing to make their purchase before the October deadline. This would indicate a busy period for the next 3 months and then we’re most likely to see a drop off in the market as lenders, brokers and buyers adjust.

Kelvin

Mortgage rates

Housing market

This view is shared by Scotiabank, as reported by Macleans who have been anticipating lower sales this year and more modest price increases,” said Warren, senior economist at Scotia Economics, after the bank forecast overall sales 15 per cent below last year’s record levels, with home prices increasing on average about five per cent

In light of this new information from CMHC we’ve updated our best mortgage rates for each province pages with the new data, so have a look.