I hope everyone has recovered from their night of celebrating our new year! I am excited to begin this year with the same momentum that 2007 brought. Winter is typically a quieter time of the year for real estate transactions, and this year, in-between sales, I am continuing my education to bring my clients the best and most up-to-date information! I am thrilled to share this information with you and begin saving you all money and time!
HERE IS THE FIRST LOOK AT HOW USING SALLY DOLLAR AS YOUR REALTOR CAN SAVE YOU MONEY! I can offer you local information and contacts to help you get started saving money and helping our environment at the same time.
Canada Mortgage and Housing Corporation
Jurisdiction: Federal
Action area: Home renovation
Dollar value: 10% of the cost of CMHC mortgage insurance (e.g., approximately $275 for a $100,000 mortgage with a 5% down payment, or approximately $85 for a $20,000 mortgage for renovation)
CMHC offers a 10% premium refund on its mortgage loan insurance premiums, as well as extended amortization to a maximum of 35 years (subject to lender availability), to individuals who use CMHC-insured financing to purchase an energy efficient home, purchase a home and make energy-saving renovations, or renovate their existing home to make it more energy efficient. The refund is a one-time payment.
For home buyers, the refund and extended amortization are available
· when a house meets the requirements of one of the following programs: R-2000 (national), Built Green Gold label, Power Smart New Home Program (Manitoba), ENERGY STAR® for New Homes (Ontario) or Novoclimat (Quebec);
· when a house has an EnerGuide for Houses rating of 77 or above;
· when a house with an EnerGuide for Houses rating of less than 77 is renovated to increase the rating by at least five points and to a value of at least 40; or
· when, for a condominium unit, the building meets the requirements of the federal Commercial Building Incentive Program (in which case a letter attesting to this must be obtained from Natural Resources Canada or the project engineer).
The refund is also available for CMHC-insured REFINANCE mortgages for the purpose of making energy-saving renovations to houses with an EnerGuide for Houses rating of less than 77. The renovations must increase the house's rating by at least five points and to a value of at least 40.
Extended amortization is available through participating lenders for all new CMHC mortgage insurance applications approved as of January 2005.
For more information visit: http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_008.cfm
How to obtain this incentive: First, obtain:
· the necessary certification or CMHC declaration from a builder who is R-2000 certified or a member of one of the provincial programs mentioned above;
· EnerGuide for Houses ratings; or
· a letter attesting compliance with the Commercial Building Incentive Program; and
· the new or refinanced CMHC-insured mortgage.
Then complete the refund application form available on the Web site and send it to the address or fax number provided.
IF YOU OWN A HOME AND ARE THINKING OF RENOVATING;
Step 1: Obtain an energy rating for your home
If you plan to use CMHC insured financing to make energy-saving renovations, a 10% mortgage loan insurance premium refund may be available.
Contact an NRCan qualified energy advisor to obtain an energy rating for your home. If the rating is below 77 you will receive a list of straightforward recommendations to increase your score (77 rating is 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).
Step 2: Discuss CMHC insured refinancing
Talk to your lender or your financial institution about which options are available to you.
Step 3: Improve your rating
Using your energy advisor's recommendations, renovate or upgrade to increase your energy rating using CMHC insured funds. You'll be amazed at the difference a more efficient furnace, better insulation or simple draft-proofing can make. Not only will you be reducing greenhouse gas emissions, but you'll also see welcome reductions in your monthly utility expenses.
Step 4: Confirm the improvement
Your energy advisor will assess your home again after the energy-saving renovations are finished. If this test shows that the house's energy rating has improved by at least 5 points and has achieved an overall rating of at least 40, the 10% premium refund may be available.
Step 5: CMHC 10% Premium Refund
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