Energy-efficient Housing Made More Affordable with Mortgage Loan Insurance

More than 17 percent of the energy consumed in Canada is used to run our homes। Buying an energy-efficient home or making energy-saving renovations can offer big savings. A 10% CMHC mortgage loan insurance premium refund and extended amortization period without surcharge may be available when you use CMHC insured financing to purchase an energy-efficient home or make energy-saving renovations. Help the Planet, Help Your Wallet CMHC has added environmentally friendly features to the Mortgage Loan Insurance it offers.

If you use CMHC insured financing to buy an energy-efficient home, purchase a house and make energy-saving renovations or renovate your existing home to make it more energy-efficient, a 10% refund on the Mortgage Loan Insurance premium may be available. You could also have the added flexibility of a longer amortization (the period of time required to repay your mortgage) from 25 years to a maximum of 35 years for loan-to-value ratios in excess of 80% (or 40 years for loan-to-value ratios of 80% or less), significantly reducing your monthly payments. The Government of Canada actively promotes energy conservation and initiatives to reduce greenhouse gas emissions that contribute to climate change. How It Works Obtaining an energy assessment through an NRCan qualified energy advisor. NRCan has developed an energy assessment and labelling system to help homeowners make energy-saving choices when buying a home or renovating. For a fee, a NRCan qualified energy advisor will evaluate the house to determine its energy efficiency rating on a scale of 0 – 100.

If You're Thinking of Buying or Building a Home

Step 1: Find out how energy-efficient it is If the house you're considering buying is: an energy-efficient R-2000 model; has an energy efficiency rating of 77 (on or after July 27th, 20051) or above; was or will be built under a CMHC-eligible energy-efficient building program; or the building in which the condominium unit you're buying (on or after July 27th, 20051) is 25% more energy efficient, than if constructed to meet the requirements of the Model National Energy Code for Buildings (MNECB), you could be eligible for a 10% mortgage loan insurance premium refund and extended amortization when you use CMHC insured financing to purchase that home or condominium unit. The house's energy efficiency rating can be obtained by: having an energy assessment completed by an NRCan qualified energy advisor; obtaining an R-2000 certificate or CMHC declaration from your R-2000 certified builder; obtaining a CMHC declaration from your builder that is a member of a CMHC-eligible energy-efficient building program; or for condominium units, a letter from Natural Resources Canada (NRCan) or the project engineer for condominium units must be obtained. If you are planning on building a new home and your builder is not R-2000 certified or a member of a CMHC eligible energy-efficient building program, you should have an energy advisor evaluate the building plans before the house is built. This can help you ensure that you will meet CMHC's requirements once the construction of the home is complete and it is evaluated. 1 An energy rating of 80 is required for purchases occurring on or after November 18th 2004 and until July 26th 2005.

Step 2: Boost your energy efficiency If the house you plan to buy has an energy rating below 77 (effective July 27th, 2005. A rating of 80 is required for purchases and renovations occurring on or after November 18th, 2004 and until July 26th, 2005), to be eligible for a 10% premium refund, you will need to obtain an energy assessment through a NRCan qualified energy advisor and renovate using part of the CMHC insured funds based on your energy advisor's list of recommendations in order to increase your score by at least 5 points and to at least 40 overall.

Step 3: Discuss and arrange a CMHC-insured mortgage Talk to your lender and ask for a CMHC insured mortgage. Step 4: Confirm the improvement After you make the renovations recommended by your energy advisor, you will need to have a second assessment done to determine the energy-saving effectiveness of the renovations। To be eligible for the 10% premium refund, the second rating must show that the house has achieved an increase of 5 points to a minimum overall rating of 40.

Step 4: Confirm the improvement
After you make the renovations recommended by your energy advisor, you will need to have a second assessment done to determine the energy-saving effectiveness of the renovations. To be eligible for the 10% premium refund, the second rating must show that the house has achieved an increase of 5 points to a minimum overall rating of 40.

Step 5: CMHC 10% Premium Refund
Submit a complete application form to CMHC for the refund.

For Futehr details: kindly go to the Web site http://www.cmhc.ca/en/co/moloin/moloin_008.cfm

Till next time:

Asher Ullah
www.homesforgta.com

Is that a good time to buy?

Well Folks this is me back again and answering the most important question in regards to todays market: "Is this is the right time to buy? or just wait?".

Most of the people are thinking that right now wait and see strategy will works best instead of actullay going for a "BIG' decision of buying a home. As anything can happen interms of economy, jobs etc.

My answer to those people is that what will happen if God forbid your job will not be their tommorow? how will you pay your rent even?How will you pay your other expenses?

I woudl say its actullay the best time to buy as not only prices are great but at the same time negocitations are easier as well. Though I must say that its not an ideal time for selling your property.

The market works in cycle and real estate is the most safest of them all. A small low in shorter run will provides a window of opportunity to avail chance as in the longer run the real estate will always goes up. Also keep in mind the great intrest rates that are there and will be there for a while as well.

All I can say is that those going against the tide will be benefiting, otherwise the market once come back to its normal, will not help you in saving money at that time.

So folks stop thinking and start acting, those who act will for sure. Buy things when they are on 'sale' instead of when they are at their normal price.

Asher Ullah
www.homesforgta.com