Buckingham Realty (Windsor) Ltd.

Market Watch August 2013

2013-08-01T13:00:00.002-07:00

RESIDENTIAL MARKET

The number of residential sales in Windsor and Essex County remains fairly flat year to date as of July 31, 2013, with an increase of only 1%, compared to YTD July 31, 2013. The average price increased 4% to $181,210 from $174,144 during the same period. Active Listings as of July 31, 2013 was 2,738 compared to 2808 in 2012, this is a decrease of 2.6%. The market remains fairly balanced with a listing sales ratio of 54% year to date 2013 compared to 53% in 2012.

We are anticipating prices to continue to rise this year, as inventory levels remain low and demand remains steady. Many Windsor home owners have struggled with low home values. As property values continue to improve each year, we anticipate more home owners in future years will be looking to buy and sell, as they will have more equity available to them.

CONDO MARKET

The number of condo sales in Windsor and Essex County has increased 4.3% year to date as of July 31, 2013. The average price year to date increased substantially to $137,498 as of July 31, 2013 from $128,794 in 2012, representing an increase of 6.8%.

Active Condo Listings as of July 31, 2013 was 225 compared to 259 in 2012, this is a decrease of 13.1%. . The Listing Sales Ratio increased to 54% year to date as of July 31, 2013 compared to 50% in 2012.

The substantial drop in condo inventory is putting upward pressure on condo prices. With rising prices and steady demand, we expect the construction on new condominiums will begin to resume within the next 1 - 2 years after coming to a halt in 2009.

Other News: The City of Detroits declaration of Bankruptcy. Detroit tax base has fallen dramatically, as the city struggles with a declining population, declining property values, and hi vacancy. However Michigan as whole is now in recovery with prices recovering rapidly from their substantial drop in 2009.

Windsor is still struggling with unemployment, Windsor's jobless rate moved up to third in Canada in June despite the fact it fell marginally from 9.5 per cent in May to 9.4 per cent last month.

The CMHC housing outlook report shows housing starts continue to be low in 2013.

Market Watch Condominium Dec 31, 2012

2013-02-03T08:46:00.002-08:00

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Condominium Market
For the Period Ending December 31, 2012

During the twelve month period ending December 31, 2012 there were 442 condominium sales in the market place. This compares to 425 condo sales in the same period of 2011, an increase of 4%.
As of December 31, 2012 there were 809 condo listings received. This compares to 878 for the same period of 2011, a decrease of 8%.
The sales to list ratio (Listings sold expressed as a percent of Listings received) for the December 31, 2012 period was 55%. In 2011 it was 48%.
The inventory of active condo listings as of December 31, 2012 was 206 units. This compares to 227 units in 2011 and is a decrease of 9%.
The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand. It currently stands at 5.6 months. In 2011 it was 6.4 months.
The average condo selling price was $126,745 for the 12 month period an increase of 4% from 2011.
The average listing during the period took 83 days to sell. Compared to 101 in 2011 and sold for 96% of the list price.

Market Watch Residential Dec 31, 2012

2013-02-03T08:45:00.002-08:00

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending December 31, 2012

During the twelve month period ending December 31, 2012 there were 4,933 residential sales in the market place this compares to 4,786 residential sales for the same period in 2011, an increase of 3%.
As of December 31, 2012 there were 9,061 residential listings received this compares to 9,364 in the same period for 2011, this is a decrease of 3% in residential listings received.
The sales to listings ratio (listings sold expressed as a percent of listings received) for the period was 54% in 2011 it was 51%.
The inventory of the active residential listings as of December 31, 2012 was 2,192, this compares to 2,450 in 2011. This is a decrease of 11% in active residential listings.
The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand. It currently stands at 5.3 months. In December 2011 it was 6.1 months.
The average residential selling price was $175,515 for the 12 month period ending December 31, 2012. This is an increase of 3% from 2011.
The average listing during the period took 74 days to sell (76 in 2011) and sold for 95% of the list price.

Buckingham October Market Watch

2012-10-19T09:52:00.004-07:00

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending September 30, 2012

During the nine month period ending September 30, 2012 there were 3,951 residential sales in the market place this compares to 3,795 residential sales for the same period in 2011, an increase of 4%.
As of September 30, 2012 there were 7,340 residential listings received this compares to 7,605 in the same period for 2011, this is a decrease of 3% in residential listings received.
The sales to listings ratio (listings sold expressed as a percent of listings received) for the period was 54% in 2011 it was 50%.
The inventory of the active residential listings as of September 30, 2012 was 2,662, this compares to 3,012 in 2011. This is a decrease of 12% in active residential listings.
The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand. It currently stands at 6 months. In September 2011 it was 7.3 months.
The average residential selling price was $176,001 for the 9 month period ending September 30, 2012. This is an increase of 4% from 2011.
The average listing during the period took 75 days to sell (74 in 2011) and sold for 95% of the list price.

For a similar report of statistics about condominiums sales, contact one of our sales representatives.

Statistics are provided courtesy of the Windsor Essex County Real Estate Board.

Banks Change Lending Rules In Canada June 2012

2012-06-21T12:11:00.000-07:00

Source Globe and Mail

The country’s biggest banks were caught off guard on Wednesday night as the Department of Finance prepared to clamp down on mortgages by reducing the maximum amortization for a government-insured mortgage to 25 years from 30.
Ottawa will also limit the amount of equity that can be borrowed against a home to 80 per cent of the property’s value, down from 85 per cent.
The moves are designed to cool the housing market and limit the record levels of personal debt Canadians have amassed in recent years. Figures from Statistics Canada show the average ratio of debt-to-disposable income climbed to 152 per cent, up from 150.6 per cent at the end of 2011. A rise in interest rates or further job losses could put some households at financial risk, endangering any economic recovery.
The Bank of Canada is expected to keep interest rates low for some time because the economy shows little sign of a strong recovery, so tightening mortgage rules is one way to ensure Canadians don’t get in over their heads during a prolonged period of ultra-low interest rates.
Reducing the maximum amortization on government-backed mortgages will eliminate the 30-year mortgage for most borrowers in Canada. The changes, which are expected to be unveiled at a news conference in Ottawa on Thursday morning, will translate into higher monthly payments, but result in the loan being paid off sooner.
Ottawa will announce two other changes, according to a source. It will no longer allow high-ratio mortgages over $1-million, and it will cap the gross debt service (which looks at a consumer’s total debt payments as a percentage of their income) at 39 per cent. While many banks tend not to allow mortgages over 40 per cent, there had been no official rule in place.
It is the fourth time in four years that Ottawa has moved to cool the housing market by tightening mortgage rules. In early 2011, Finance Minister Jim Flaherty reduced maximum insured amortizations to 30 years, and limited borrowing to 85 per cent of the property value.
CIBC economist Benjamin Tal described the changes as a “gentle push,” since the government didn’t make alterations to the minimum downpayment required on mortgages, which stands at 5 per cent.
“The fact that they didn’t change downpayments is a realization that doing so would probably be too severe given that the market is slowing down,” he said.
However, there remain concerns the changes could cause too abrupt a shift in the market. “All of these things might precipitate the housing market downturn that the government wants to avoid,” Jim Murphy, CEO of the Canadian Association of Accredited Mortgage Professionals, said in an interview.

Mortgage Pre Approval - Windsor Essex Real Estate

2012-04-11T07:47:00.001-07:00

By Dan Lenhardt - Scotiabank

Compliments www.buckinghamrealty.ca

Two often confused terms in the home buying process are a mortgage loan pre-qualification and a home loan pre-approval. Even some loan officers and real estate agents will use the terms incorrectly, so here's what you really need to know about each one.

Pre-Qualification

A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. The best time to get a pre-qualification is right at the beginning of your home buying process, before you even start looking at houses. This involves either sitting down with a lender or talking with one on the phone, and providing information on your income, assets, debts, and a potential down payment amount. The lender would then provide you with a ballpark figure in writing of how much he thinks you could afford to pay for a monthly mortgage. There is no cost involved and there is no commitment on either side. This estimate is just helpful in helping you figure out if buying a home is a viable option, and if so, what your price range would probably be.

Pre-approval

Getting pre-approved means that you have a tentative commitment from a specific lender for mortgage funding. In this case, you provide a home loan lender with actual documentation of your income, assets, and debts. This process typically requires an application fee as well, since the bank will run a credit check and work to verify all your employment and financial information. Once you are approved, the lender will give you a letter of commitment, stating how much money her bank is willing to loan you for a home purchase. With a pre-approval in hand you can start your shopping - real estate agents and sellers will take you much more seriously when they see you have your mortgage funding in place.

It is important to understand, however, that even a pre-approval is not a guarantee that you will be approved for a mortgage loan. The funding will only be given when the property appraisal, title search, and other verifications check out on the home you have chosen to buy. Neither is the pre-approval binding; you can still obtain a mortgage from a different lender. If you do stick with the same company that pre-approved you though, the application process will be much shorter once you find the right house.
Call Dan for your pre-approval !

Scotiabank

Dan Lenhardt, AMP
Mortgage Manager
Windsor and Area
off: 519-974-4632
cell: 519-919-2779

Deadline for Request for Reconsideration April 2, 2012

2012-03-09T13:02:00.000-08:00

Source MPAC brochure:

If you don’t agree with your Property Assessment from MPAC you can file a Request for Reconsideration.

The deadline to file your RfR is April 2, 2012.

There are two ways to file a RfR:
• The preferred method is to submit a RfR form.
Request For Reconsideration 2012 Form

Forms are available at www.mpac.ca, or call us at 1 866 296-MPAC (6722). You may also choose to file your RfR electronically through AboutMyProperty™ on MPAC’s website. You will be able to attach documents, pictures and reports to accompany your RfR. Your personalized User ID and Password for AboutMyProperty™ are included on your Notice.
1. Write a letter requesting a reconsideration. In your letter, please include the 19-digit roll number on your Notice; your full name, address and phone number; and the reasons why you feel your assessment is not correct, including any information you have to support your claim.
2. File an Appeal with the Assessment Review Board (ARB) You may also choose to file an Appeal with the ARB, an independent tribunal of Ontario’s Ministry of theAttorney General.

Residential, Farm and Managed Forest Properties
If your property, or a portion of it, is classified as residential, farm or managed forests, you must first file a RfR with MPAC before you are eligible to file an Appeal with the ARB. The classification of your property is indicated on your Notice.

If you are required to, or choose to file a RfR first, you have 90 days after MPAC has notified you of its decision on your RfR to file an Appeal with the ARB.
The ARB has its own Appeal process. For more information, please contact the ARB at
1 866 448-2248 or 416 212-6349 or visit their website at www.arb.gov.on.ca.
To request that your property be eligible for the farm or managed forests classes or
conservation land exemption, you must file a RfR with the respective program administrator. For more information, please contact MPAC or visit www.mpac.ca.
Other Property Types
For any other property types, you can choose to file a RfR with MPAC or file an Appeal with the ARB. The deadline to file your RfR and/or Appeal is April 2, 2012.
MPAC’s Role at an ARB Hearing At an ARB hearing, the onus is on MPAC to prove the
accuracy of our assessed value. MPAC will present comparable properties as evidence and will share that information with you prior to the hearing. You will also be asked to provide evidence to support
your position. Ideally, you should select properties that are most similar to yours (for example, neighbourhood, lot dimensions, living area, age of structure(s) and quality of construction). Please contact MPAC if you have any questions.

Understanding Smart Meters - ENWIN

2012-03-09T12:38:00.003-08:00

Smart Meters are Here

As part of a provincial initiative to encourage energy conservation and help Ontario consumers manage their electricity costs, ENWIN is now installing Smart Meters throughout Windsor. The Ontario Energy Board (OEB) has directed energy providers, like ENWIN, to install Smart Meters in all Ontario homes and small businesses, encouraging the development of a province-wide "culture of conservation". As Windsor's energy provider, ENWIN is mandated to complete local Smart Meter installations by early 2011.

Everything Stays the Same

It is important for customers to realize that everything will remain the same, following your Smart Meter Installation: An ENWIN employee will still come to read the meter, EnWin bills will still look the same, and electricity charges will still be calculated in the same way as before. Eventually, the province is expected to switch over to a new rate structure called Time-of-Use (TOU) pricing. But for now, only the appearance of the meter will change.

TOU Pricing is NOT in Effect

Smart Meters are here, but Time of Use Pricing isn't. Not yet. You will not automatically move to time-of-use rates once your smart meter has been installed. Provincial legislation requires ENWIN to install Smart Meters as one step towards conserving energy and building for the future. Smart Meters will be installed this fall - but that will NOT have an immediate impact on how you are billed for your electricity. ENWIN customers will be billed differently ONLY after the Province requires us to move to Time of Use billing - likely some time in 2012. When a firm date is set, ENWIN will contact customers directly, and make sure you have all the information you need to benefit from the change. At the present time you will not notice any difference in your billing.

ENWIN Respects and Protects Your Privacy

As we move forward with Smart Meter installations, remember that Time of Use pricing is not yet in effect. In the future, when the Province requires ENWIN to move to this new system, Smart Meters will help customers reduce their energy costs by offering clear information about much energy is used at specific times of day. How and why you consume energy will remain, as always, private. ENWIN will ensure you are aware of all changes before they occur, and we thank you for helping Ontario build a brighter future.

Quick, Efficient Installation

Installation only takes a few minutes. A representative from ENWIN's contractor, Olameter, will knock on your door to inform you that they are there to install your smart meter. Your power will be interrupted briefly, while the old meter is exchanged for a new Smart Meter. If you are not home, the representative will complete the installation and leave a door hanger to inform you that your Smart Meter has been installed. Customers may find they need to reset digital clocks and other electronic devices, following the installation.

Look for the Olameter Logo

ENWIN has contracted with Olameter Utility Solutions to install smart meters in the Windsor area. Customers are asked to look for the Olameter logos on installers' vehicles and ID tags. Olameter representatives will not ask to see your utility bill, and you will not be required to sign anything.

Reliable and Secure

Smart meter installations are now underway, as part of the Ontario government's mandate to create a "culture of conservation", and build a reliable, secure and healthy energy future. When the Province requires ENWIN to move to Time of Use pricing - likely some time in 2012 - EnWin's Smart Meters will record frequent, accurate meter readings. This will allow customers to take advantage of lower energy prices, whenever possible throughout the day. ENWIN is using the knowledge gained by front runners in the Smart Meter installation process, to ensure your Smart Meter is reliable and secure.

The Smart Energy Future

When TOU pricing comes into effect in Windsor, energy providers will be required to vary prices for electricity according to demand levels at the time of use, with higher prices being charged during peak demand periods and lower prices during mid-peak and off-peak periods. This pricing structure is intended to encourage consumers to think more about how and when they use electricity, and move their consumption away from more expensive times of the day.

Smart Meter, Smart Consumer

Electricity bills will be much more precise, based on the hourly readings taken and sent by the Smart Meter. And "smart" energy users will be part of a new program provincial program that will reduce peak demand, and lessen stress on Ontario's electricity system.

Time-of-use (TOU) Prices

Time-of-use pricing is changing effective May 1, 2011. (Prices subject to change every 6 months)

Based on typical residential consumption patterns, the estimated TOU bill impact is an increase of about 3.8% on the total bill, or $3.96 per month, for residential consumers who use 800 kWh of electricity a month.
It is expected there will be approximately 3 million customers on TOU billing by June 2011, with more being switched to TOU billing over the summer and through the fall.

10 Smart Meter Lane

Take a tour of 10 Smart Meter Lane to see how you can better manage your electricity costs when Time-of-Use (TOU) pricing comes into effect. This interactive tool shows how running appliances at different times of the day or week can impact your electricity bill.

Windsor Essex Property Tax Rebates For Commercial and Industrial Buildings

2012-02-23T03:53:00.001-08:00

Windsor Essex Property Tax Rebates For Commercial and Industrial Buildings

Windsor Essex property tax relief for vacant commercial and industrial buildings will be provided to property owners through rebates that are issued by municipalities. This rebate program is governed by section 442.5 of the Municipal Act and Ontario Regulation 325/01.

APPLICATION FORMS

LASALLE – contact municipality

AMHERSTBURG

ONTARIO STANDARD FORM

Windsor Essex REBATE: types of properties that are eligible for rebates, the application procedures, the method for calculating rebates, appeal mechanisms, and key deadlines.

WINDSOR ESSEX PROPERTY THAT IS ELIGIBLE FOR A REBATE

To be eligible for a rebate, a building or portion of a building must satisfy the conditions described below.

Buildings that are Entirely Vacant

A whole commercial or industrial building will be eligible for a rebate if the entire building was unused for at least 90 consecutive days.

Buildings that are Partially Vacant

A suite or unit within a commercial building will be eligible for a rebate if, for at least 90 consecutive days, it was:

unused; and
clearly delineated or physically separated from the used portions of the building; and
either capable of being leased for immediate occupation, or
not capable of being leased for immediate occupation because it was undergoing or in need of repairs or renovations or was unfit for occupation.

A portion of an industrial building will be eligible for a rebate if, for at least 90 consecutive days, it was:

unused; and
clearly delineated or physically separated from the used portions of the building.

Exclusions

Seasonal Property:

Businesses that operate on a seasonal basis are not eligible for a rebate for the seasons they are closed.

Leased Property:

Buildings or portions of buildings that are vacant but are leased to a tenant are not eligible for a rebate.

Vacant Land Sub-Class:

Buildings that are included in a vacant land sub-class (e.g. new buildings that have never been occupied) are not eligible for a rebate.

WINDSOR ESSEX APPLICATIONS -- CONTENTS AND PROCEDURES

Property owners (or their authorized representatives) must submit an application to their local municipality in order to receive a rebate. Application forms may be obtained from local municipal offices.

Deadline for Submitting Applications

The deadline to submit applications for a tax year is February 28 of the following year. (For example, for the 2001 tax year, the deadline to submit applications is February 28, 2002.)
However, if a property owner receives a notice of omitted assessment from the Municipal Property Assessment Corporation (MPAC) after a tax year, the deadline to submit an application for a rebate is 90 days after the date of issuance of the notice of omitted assessment.

Number of Applications

Property owners may submit a maximum of two applications per property per year. Specifically, they may submit either:

one application in respect of all vacancies that occurred on a property during the entire tax year; -- or --
one application in respect of the vacancies that occurred during the first six months of the year and a second application for vacancies that occurred during the last six months of the year.

Contents of Applications

At a minimum, rebate applications must contain the following information:

name of property owner (and name of owner's representative if the application is made by an authorized agent on behalf of the owner);
municipal address of property;
roll number of property;
dates of vacancy;
description of vacant portion of property (suite number and floor number or description of location within building); and
size of vacant area in square feet.

The municipality or MPAC may contact an applicant to request further information to assist in verifying eligibility or identifying the vacant area.

Processing Applications

Applications will be processed through the following steps:

Property owner or authorized representative submits an application to the local municipality.
Municipality forwards a copy of the application to MPAC.
MPAC determines the assessed value that is attributable to the vacant area.
MPAC notifies the municipality of the value of the eligible vacant property.
Municipality calculates rebate and notifies property owner. Rebates may be issued as a credit against an outstanding tax liability or through direct payment to the property owner.

WINDSOR ESSEX AMOUNT OF REBATES

Calculation

Rebates will be calculated using the following formula:

Notes to Calculation Formula:

The assessed value of the vacant area will be determined by MPAC.
The assessed value of the whole property does not include portions of the property that are exempt from taxation or portions that are in a sub-class for excess land. In a mixed-use property, the assessed value of the property refers to the value attributable to the portion of the property that is in the same property class as the vacant portion.
The taxes on the whole property do not include taxes attributable to portions of a property that are in a sub-class for excess land. In a mixed-use property, the taxes of the whole property refer to the taxes attributable to the portion of the property that is in the same property class as the vacant portion.
Number of days of vacancy refers to the number of days that the property met the eligibility criteria within a tax year.
Total number of days in year will be 365 except in leap years when it will be 366.
The percentage will be 30% for commercial property and 35% for industrial property unless a municipality has passed a by-law to apply a common percentage to commercial and industrial vacancies between 30-35%.

Sample Calculation:

Key Facts - Hypothetical Commercial Property:

Value of vacant unit = 80,000
Assessment of whole property = 800,000
Taxes on whole property for the year = $40,000
Duration of vacancy = 120 days (in a single tax year that is not a leap year).

( 80,000 / 800,000 ) * $40,000 * ( 120 / 365 ) * 30% = Rebate of $394.52

Recalculation following Change to Assessment or Taxes

After a rebate has been issued, if a property's assessment is subsequently altered through a reconsideration, an appeal, or an application (under sections 39.1, 40 or 46 of the Assessment Act), or if the taxes of the property are subsequently reduced (under sections 442 or 443 of the Municipal Act), the rebate will be recalculated and the municipality will notify the property owner of any consequential tax adjustments.

WINDSOR ESSEX APPEALS

Property owners who disagree with the amount of the rebate that is calculated by the municipality can appeal to the Assessment Review Board (ARB) within 120 days after receiving notification of the rebate amount from the municipality.
As well, if a municipality fails to process a rebate application within 120 days after the deadline for submitting applications (or within 120 days after the owner has provided all of the information required in support of the application, whichever date is later), the owner may appeal to the ARB to ask the Board to determine the amount of their rebate entitlement.
Appeals to the ARB must be submitted in writing and must be accompanied by the appropriate fee. Details about appeal forms and filing fees can be obtained from the ARB at:
Assessment Review Board
250 Yonge Street, 29^th Floor
Toronto, ON M5B 2L7
Phone: 1-800-263-3237 or (416) 314-6900
Fax: (416) 314-3717
Web Site: http://www.arb.gov.on.ca

PENALTIES

A person who knowingly makes a false or deceptive statement in an application for a rebate is liable, upon conviction, to a fine of double the amount of the rebate that the person sought to obtain through their false or deceptive statement.
For the purpose of verifying a vacancy rebate application, municipalities have been given similar rights as assessors to request information and obtain access to premises. A fine of $100 per day may be imposed upon a property owner for failure to comply with a municipality's request for information.

FURTHER INFORMATION

For additional information about the process for submitting rebate applications, timing of payment of rebates, or calculation of rebates, please contact your local municipal office.

For general information about this rebate program, you may contact the Ministry of Finance .
Phone:
English: 1 800 263-7965
Français: 1 800 668-5821
Teletypewriter (TTY): 1 800 263-7776
Web Site:
English: http://www.fin.gov.on.ca/en/index.htm
Français: http://www.fin.gov.on.ca/fr/index.htm
Note The information in this document is provided for general reference purposes only. For complete information or for precise interpretation, please refer to section 442.5 of the Municipal Act and Ontario Regulation 325/01.

New Home Sales Contracts Review

2012-01-24T09:20:00.001-08:00

Understanding Your New Home Sales Contract

Buying a brand-new home can mean a lot of different things — an opportunity to get the home you really want, a dream come true, an investment for the future, an achievement to be proud of.

It is also a legal transaction that should never be done without a detailed written contract!

The first rule of homebuying is to get it in writing! A contract, or Agreement of Purchase and Sale, as it is often referred to, spells out the terms between you and your builder — who, what, how, when and how much. It also sets out the rights, restrictions and obligations for each party.

Without a detailed contract, there may be no reference point in case of a misunderstanding or disagreement between you and your builder. It may be impossible to prove what was agreed to, and difficult to enforce any arrangement or promise that’s not written down.

Unlike resale transactions, there is no standard form of Agreement of Purchase and Sale for buying a new home. In some areas, builders may adapt model contracts prepared by their local home builders’ association or their new home warranty provider. Often, though, builders prepare their own agreements and require that you use those forms. As a result, new home contracts can vary considerably from one builder to another.

Typically, a contract will contain information that’s specific to you, the purchaser, and the home you are buying, as well as general information outlining the builder’s practices, limitations, disclaimers and warranty.

This fact sheet presents information on some of the terms and provisions that you may find in a new home sales agreement to illustrate what a contract can cover and why.

Before you sign a contract with your builder, make sure you fully understand what’s in it and what’s not, and that your interests and concerns are addressed and your questions are answered to your satisfaction.

What’s in a New Home Contract?

New home Agreements of Purchase and Sale are generally more complex than resale contracts. This simply reflects the fact that a new home is usually a more complex purchase.

Contracts can range from a few pages to sizeable documents with many schedules or attachments. A quick rule of thumb may be "the more specific, the better"— having things on paper, even minor items, reduces the potential for confusion and conflict.

The purchase of a brand-new home can happen in a number of ways. You may buy a home in a new development from a large building company, or buy from a custom builder to have greater flexibility and choice. You may own a lot and hire a company to construct your home. You may buy a factory-built home for a lot you own or lease. Or you may buy a condominium unit in a high- or low-rise building project.

Each scenario has its own practices and requirements that must be reflected in the contract; however, many contractual considerations are common to all. While this fact sheet is oriented toward the purchase of a home on a lot from a larger builder, it may provide helpful and useful information in other situations.

The following pages highlight some of the information you may find in a builder’s contract. Keep in mind that each builder does business differently. Beyond legal requirements that everyone must follow, each builder has its own unique practices, and the contract will reflect this.

Also be aware that a builder’s contract may include provisions or restrictions for the benefit of the builder. You want to go into your new home purchase with your eyes open. Read the contract carefully and make sure you are familiar and comfortable with everything in it. If you have questions and concerns, talk with your builder. Also have your lawyer or notary review the contract before you sign it.

Please note that “builder” refers to the company or the company representative that you will be dealing with when buying a home. This could be the owner of the company or, in the case of large companies, more likely a salesperson — either a staff member or an outside sales specialist.

What to look for in a contract	Why? Details, explanations
Description of your home Model name or number Lot number (or legal description) Possible attachments: Site plan (location of the home on the lot/street) Floor plan Builder’s rendering (artistic drawing) of home Elevations (drawings of the front, rear or side of the home) Specifications Construction plans (working drawings) Disclosure statement (condominium or strata lot home) All attachments, or schedules, should be dated and initialed by you and the builder.	You want to eliminate all possibilities for mistakes. If a builder offers several versions of a model or variations on the exterior appearance, verify that the contract describes the right home and the correct details. Also verify the lot and orientation of the home. Developers may assign certain models to specific lots in order to create a diverse and attractive streetscape — if you have looked at several models and several lots, make sure you know which lot you are buying. Sometimes homes may be built as "reverse plans" to fit into the overall community design — check with your builder if this is the case with the home you chose. Be aware that renderings (drawings) used to showcase builder's homes in the sales office as well as in printed sell sheets may be an artistic impression only, not a precise depiction of the home. Items such as windows, doors, cladding and landscaping, for instance, may be enhanced for presentation purposes. Specifications list the materials and products that will be used in building your home, from lumber and mechanical systems to windows and bathroom fixtures. Usually, the construction plans for your home will not be part of the contract. Minor changes will be marked on the floor plans. However, if you are making significant changes to the builder’s model, the modified construction plans may be attached to the contract. Plans for custom homes are generally included — if you have paid a separate design or architectural fee, you normally own the plans.
Price The home Upgrades and options Most builders offer a range of upgrades to the standard products used in the home, for example, higher quality carpeting or premium countertops; or additional, optional items, from built-in wine-racks to sunrooms. GST/HST and the GST/HST New Housing Rebate Homebuyers can choose to apply for the rebate themselves, or they can assign the rebate to the builder, in essence redirecting payment from Canada Customs and Revenue Agency to the builder. Payment schedule Possible attachments: Detailed pricing sheet Listing of upgrades and options GST/HST rebate assignment form Receipt for deposit	The cost of buying a new home normally consists of two parts: the actual price of the home and other costs associated with the purchase (see later). Know what’s included in the price of the standard model, and what’s not. If your buying decision is based on a model home, the model most likely has upgrades and options that are not included in the standard price. If you are uncertain, ask the builder to walk through the model to clarify standard items as well as upgrades and options. Further, the contract should note if there will be any rental equipment in the home you are buying, such as the hot water heater, furnace or heat pump. All the upgrades and options you select for your home should be listed and described in detail (such as brand, model name, product number, colour and cost). Some builders may ask you to choose upgrades and "extras" right away, and the additional cost will be included in the purchase price up front. More commonly, you will have an opportunity to choose upgrades and extras at a later date, usually as part of the colour selection process (see below) and the contract will be amended as needed. Usually you will pay the cost of these “extras” at the time of closing, when you take possession of the home. A new home purchase is subject to GST/HST; however, there is usually a rebate of up to 2.5 per cent of the GST payable. To qualify, the home and the purchaser have to meet certain criteria. In the vast majority of new home purchases, the GST/HST rebate is assigned directly to the builder. In fact, the rebate is often calculated right into the purchase price of the home, and when you sign the Agreement of Purchase and Sale, you’ll be asked to sign a rebate assignment form at the same time. Contact your local Canada Customs and Revenue Agency office for more information, or visit http://www.ccra-adrc.gc.ca. The contract should set out a schedule of payments with dates and amounts. It normally begins with a deposit when you sign the contract, and often an additional deposit once all conditions (see below) have been met. Your builder may require progress or milestone payments throughout construction. The balance is normally payable on closing, i.e. the day you take possession of the home. The deposit amount required by builders can vary significantly; ask upfront what is considered "normal" and reasonable. You will also want to know if your deposit will be held in trust, if it will be insured and for how much, and whether it is refundable if you have to back out of the sale. Builders may differentiate between "deposit" and "reservation" money. The latter may be used in cases where the builder is putting a hold on a particular lot or home for you for a short period of time, while you "think it over". Some builders may also allow you to reserve a home for a longer period while they may be waiting for municipal approvals, for instance.
Other costs Additional costs and charges Adjustments Closing costs Possible attachments: List of additional charges	Builders may charge for a variety of other items, to be paid on closing. Check the contract carefully for mention of any additional costs. Also ask the builder to list all additional charges — you want to avoid surprises when you sign the final cheque in your lawyer’s or notary’s office. Additional costs may involve, but not be limited to: installation and hookup of utilities; connection of appliances; tree planting; a second coat of asphalt on the driveway; the cost of the new home warranty and fees for the builder’s lawyer/notary to prepare the deed. Builders may also include a clause in the contract related to additional charges in the event they hit bedrock when excavating, or encounter other soil conditions that could add significantly to their cost. There may also be costs related to adjustments on closing, such as utilities and pre-paid taxes, or insurance premiums if you assume the builder’s policy. Again, check the contract and talk with your builder and your lawyer/notary. Finally, you will have a number of other closing costs, such as legal fees, land transfer tax and mortgage fees. While not directly involving your builder, most companies will be able to give you a list and an estimate of these costs. Also talk with your lawyer/notary and mortgage lender about closing costs, so you have a clear idea of your final financial obligations.
Financing Builder mortgage New mortgage Pre-approval usually means that your lender is committed to giving you a mortgage loan up to a certain amount, at a set interest rate and other terms. This commitment is for a specific length of time, after which you have to negotiate new terms and conditions with your lender. Possible attachments: Mortgage information Financing conditions	Some builders offer mortgages through their financial institution, sometimes at preferential rates or with added incentives. Before you accept, check the conditions and requirements carefully, and any processing costs involved. You can also arrange for your own mortgage. If you have pre-approval from your lender, you already know how much you can borrow and on what terms. If not, you want to make the purchase conditional upon obtaining a mortgage. Also be sure that you understand the timeframes — a “pre-sale” home (a home from plans) may take a long time to completion; check that your lender’s mortgage commitment doesn’t expire prior to the closing date on your new home. Some builders, particularly those building custom homes, may require regular milestone payments during construction. Construction loans (known as draw mortgages in some areas) can be established to allow you or the builder to draw advances from your future mortgage at agreed intervals during the building process. Your builder may decide to pay for fees or accrued interest when using this process.
Other conditions For the purchaser’s benefit The language in a condition should be easy to understand — what needs to be done, by whom and by when. For the builder’s benefit Possible attachments: Conditions	In addition to financing, a contract can include other conditions to protect your interests. For instance, you will want your lawyer/notary to review the contract before you sign. Some builders' agreements contain a standard clause to that effect; in other cases, you may have to add a condition in the body of the main document or as an attachment. There are other circumstances: for instance, you may want to make the purchase of the new home conditional upon the sale of your current home. Or if your spouse or partner is not available during discussions with the builder, you may want to add a condition related to their approval of the contract. The agreement may also include conditions for the benefit of the builder. For instance, your purchase may be conditional upon the builder getting a building permit. Or the builder may not yet have municipal approval for the subdivision plan; if not approved, construction cannot go ahead. Your contract should set timeframes and state what will happen if the builder has to terminate the agreement, for example, refund of deposit.
Restrictions on title Easements Covenants Possible attachments: Restrictions on title Community or subdivision plan Community guidelines	"The builder promises that the title is free and clear of all encumbrances, except for…" Your contract should include information about any restrictions on title. Subdivisions may have some form of restrictions that limit what you can do on your property, so it’s important to know. For instance, developers may have agreements with the municipality or other landowners that must be passed on to the purchaser. Easements normally allow access or use of your land by others, including rights of way for utilities, telephone and cable lines, drainage or sewers, and backyard access for other residents. Usually, you cannot build permanent structures (e.g. garden sheds, decks or play equipment) over easements. Sometimes, easements can be temporary, giving the builder or developer access to your lot until the community is fully developed and built. Covenants normally deal with things you may or may not be able to do, such as hang laundry in the backyard, plant certain kinds of trees, take down or erect a fence, or change the exterior colour scheme of your home. They may also dictate the location of satellite dishes or condensing units for air conditioners. Some developments publish detailed community guidelines. Your decision to purchase may in part be influenced by the community itself, so make sure you understand what it offers — for instance, green spaces, landscaping, fencing, recreational facilities and schools. You want to know about other things that could affect your enjoyment of your home, such as nearby community mailboxes, future bus stops and passenger shelters. This is part of the community plan — ask the builder to "show and tell". You or your lawyer/notary may also want to contact the local municipal office for information about the development, and to find out if there are future plans for adjoining areas or nearby that could affect you and your property. This could include new or expanded roads, industrial parks, commercial strips or residential developments.
Construction schedule Start and completion dates Delays Possible attachments: Process/details regarding delays	The builder should be able to identify a start and/or completion date in the contract; however, there may be exceptions. For instance, the builder may be waiting for you to meet certain conditions or for final municipal approvals. In such cases, the contract may note that start dates are approximate. It may also specify what will happen, for example, "If the builder is not able to begin construction of the home within xx days of the signing of the contract (or approval of the mortgage by the buyer’s lender, or … ), the contract is null and void, and the purchaser’s deposit will be returned in full." Ask the builder to explain whether the completion, or occupancy, date appearing in the contract is tentative or a confirmed date. This may have implications for notification and coverage of delays under warranty. Look for the contract to cover completion delays, either in the main section of the contract or a separate attachment. The contract may note that the builder participates in a new home warranty program with an established process for dealing with delays. In any event, make sure you understand exactly how it works — what constitutes a delay, when and how you will be notified, and what happens if you have to move out of your old home before the new one is ready. This is crucial information because you likely need to coordinate your move with your current landlord or with new owners of your current home. Delays can also affect your mortgage by postponing the closing of your home beyond the period of your guaranteed interest rate. Ask your builder to explain, and also contact the builder’s new home warranty provider for information on delays, including rules and procedures. Remember that your builder wants to avoid delays as much as you do. Delays can happen for many reasons beyond a builder’s control, from bad weather to labour and material shortages; this is often spelled out in the contract. However, when all parties have discussed the possibility in advance and are familiar with the process, it is usually a lot easier to deal with delays, should they happen.
Construction standards	Builders often insert a clause in their contract stating "that the dwelling will be built to the building code standards of the province and the work will be performed in a workmanlike manner", or similar wording. Some third-party new home warranty providers have developed guidelines for construction performance for work and materials, providing objective criteria for performance and evaluation of defects.
Site visits during construction Practices Process Possible attachments: Liability waiver	The construction site can be a dangerous place. Until recently, many builders took a fairly casual approach to site visits. However, given current provincial and national legislation in such areas as labour, safety and negligence, as well as growing limitations on builders’ insurance coverage and greater concern about liability, many builders are now restricting access to the site for homebuyers. Some builders allow homeowners regular site visits, when accompanied by a company representative. Others permit visits only for specific purposes, such as verifying location of electrical boxes, or for a pre-delivery inspection (see below). By law, you must wear proper safety gear whenever going on a construction site — hard hats and safety footwear. Some builders may also ask that you sign a waiver releasing them from liability in case of accident. Your builder’s contract may include a provision or restriction about site visits. If not, ask: "When can I come on site? How much notice is needed? Can I bring others, for example, family, friends or a professional home inspector?" Also discuss how to deal with any issues or questions arising from a site visit. Builders may include a clause in the contract that purchasers cannot discuss anything directly with workers and sub-trades onsite, only with the appointed contact person, to prevent confusion and misunderstandings.
Colour selection Possible attachments: Colour selections, upgrades and options	Builders usually offer a variety of colours, patterns and options for many of the finishing products in your new home, such as flooring, counters and cabinets. Many builders offer the services of experienced in-house designers to assist you in this process. At the same time, you may have an opportunity to further customize your home with upgrades and extra features. Depending on the architectural controls in the community, you may also have choices for the exterior finishing (for example, colour and type of cladding, doors, garage treatment). The contract may stipulate certain timeframes for your colour selection in order to ensure the timely progress of construction. For instance, you may need to decide on the exterior finishing before a building permit can be issued. You may also be required to make your interior selections within a few weeks of signing the contract; this allows the builder to order early from suppliers and may help prevent the construction of your home from falling behind schedule. If not done within a certain period, the builder may reserve the right to select the finishing products on your behalf.
Change orders: when you want to change something Policy Process Payment Possible attachments: Change orders	From start to completion, the construction of your new home will usually take several months. During that time, you may change your mind about some of your decisions, or want to add extra items. Most builders, but not all, allow for change orders, when possible. Some builders will give their clients a schedule of construction phases, and certain alterations may not be permitted once a particular phase has been reached. Or alternatively, you may have to accept significant extra cost and possible construction delays. Change orders are considered to be separate and independent contracts. Change orders should be made in writing and signed by both parties — this prevents surprises such as finding out that an order you placed over the phone with "someone" in the office or on site was not executed, and there is no record of it anywhere. You may be asked to pay for change orders on signing, or the cost may be added to the amount payable at closing. Some builders may also charge an administration fee to process the order.
Deviations from the plans: when the builder needs to change something Dealing with the prospect of builder changes is also a matter of knowing whom you are dealing with. Choose a reputable builder and check with previous homebuyers on their experience buying from the company — that way you are one step closer to avoiding surprises, disagreements and having to live with choices you didn’t make.	Most builders' agreements contain provisions that allow the builder to make minor changes to the home, if needed, without notifying the buyer. As a rule, builders avoid making changes whenever possible; however, there are times when it’s unavoidable. Typically builders reserve the right to substitute products and materials of a similar or superior quality. This can be necessary if the builder faces shortages, delayed deliveries or discontinuation of a product or material; otherwise work on your home could fall behind schedule or come to a standstill. Your contract may also state that your builder can make minor changes without notification for other reasons, for instance, "siting, plans and specifications of the home, including architectural details and exterior finishes may be subject to approval by the municipality, and homebuyers shall accept minor modifications". Such changes could include sizes and dimensions of the lot as well as the house or rooms within it. There is no standard industry agreement on what constitutes a "minor" change. Contracts typically include a statement to the effect that the value of the property shall not be diminished by any such alterations. In addition, some third-party new home warranty programs may cover substitutions where purchasers have exercised a selection option, and for items of construction and finishing referred to in the contract; this may include discrepancies in design or square footage. The key issue for homebuyers is one of degree: what is reasonable for builders to change without telling you, and what’s not? How extensive is the modification? Will it alter the home, and would it have made a difference to your buying decision? For instance, you may not even notice six inches off the width of your driveway; on the other hand, you will undoubtedly want to be notified if the builder has to reduce the number, size or location of windows and doors, or reverse the plan of your home. If you are concerned about the possibility of unexpected changes, talk with your builder and try to be as specific as possible. How often does this occur? How likely is it to happen with your home? How does the builder define "minor" and "major" modifications? In the event of a "major" change, will you be notified and have the option of canceling the contract, or choosing another lot, for instance? Also contact the builder’s warranty provider for information and advice.
Warranty Builder’s warranty Third-party warranty Depending on the province you live in, builders' third-party warranty is provided by non-profit new home warranty programs and/or by private insurance companies.	The contract should spell out the builder's warranty on your new home. Almost all builders offer a one-year after-sales warranty on workmanship and materials. In addition, third-party warranty from an independent warranty corporation is mandatory in Quebec, Ontario and British Columbia (some exceptions apply); everywhere else it is optional. Third-party warranty programs set minimum warranty requirements that builders must comply with; these often go beyond what’s offered by builders who are not covered. The contract should note if your builder is registered with a new home warranty provider, and also specify if your home will be covered by that provider — normally each home is enrolled separately and given an identification number. Ask the builder to explain: how does the warranty work and what's covered for what periods of time? Is your deposit protected? Is construction completion guaranteed and what’s your recourse if the builder is not able to complete construction? Get written information, so you can study the details further on your own. Also check with the builder's warranty provider: visit their Web site, request their publications and call for further information and answers to any questions you may have. You may also want to check with your financial institution — lenders may insist that your home purchase be protected with a third-party warranty as a condition of giving you a mortgage loan. Usually there is a standardized approach to what's covered under warranty, and what’s not. Some builders (and some warranty providers) will itemize what's excluded from warranty. Many builders also provide buyers with a manual on home maintenance — lack of proper homeowner care may void warranty.
Manufacturers’ warranty Possible attachments: Warranty information List of items not covered After-sales service policy	In addition, the builder will pass on to you the manufacturers’ warranties on products used in the construction of your home. However, this does not mean that the builder assumes responsibility for these additional warranties. Finally, find out about the builder’s after-sales service policy. Most have an established process and timeframe for regular contact and visits during your first year in the home, as well as an emergency service, should you need it.
Pre-delivery inspection, or homeowner walkthrough Deficiencies are items that have not been completed at the time of the inspection (for example, missing cabinet handles). Defects refer to items that are supposedly finished but require additional work to meet quality standards (for example, windows that stick, a gouge in the floor). Put everything you note during the inspection in writing, even the smallest item; this helps to eliminate confusion or dispute. Possible attachments: Copy of Certificate of completion and/or possession	Before you take possession of your new home, your builder will usually schedule a time to go through the home with you, usually about a week before closing. The purpose of this is twofold — to inspect the house for completion and to show you how the systems work. Going through the house from top to bottom, inside and out, you will be asked to note any deficiency or defect. This written record, often referred to as the Certificate of completion and/or possession, will be forwarded to the builder's warranty provider. Most items will be corrected or completed by the builder before you move in, or shortly thereafter. "Seasonal deficiencies" related to items such as decks and landscaping will usually be addressed as soon as weather conditions allow. Different builders take different approaches to the pre-delivery inspection. Some will allocate several hours to a thorough walk-through, looking at everything in detail with you. Others may keep it short and focus on familiarizing you with the home and identifying outstanding items, but will give homebuyers 24 or 48 hours after taking possession to conduct a detailed inspection on their own. Builders also have different policies regarding who can attend the pre-delivery inspection. Many permit you to bring other family members who may lend an expert eye to the process, or a professional home inspector. Other builders restrict participation to the principal purchasers only. Know the company's inspection system and policies before you sign the contract. Ask your builder to explain, and check for details in the contract.
Insurance	Normally the builder is responsible for insuring the home during construction. Buyers may be asked to take over the builder's insurance policy after closing, if they are also assuming the builder's mortgage on the home.
Disputes	Once the contract has been signed, and the conditions have been met, it is binding. There is no easy way for a purchaser to terminate the agreement or change any parts of it, unless the builder agrees. Disputes between home purchasers and builders are usually resolved through discussion. If the parties have difficulty in reaching a solution, disputes can be referred to a third party for mediation. This may be the builder's new home warranty provider or someone else that both parties can agree to. Failing that, you need to pursue legal remedies through your lawyer.
Completion	Many contracts contain a provision to the effect that "the home shall be deemed to be completed when all interior work has been substantially completed so that the building may be reasonably occupied, notwithstanding that there may be outstanding exterior work, such as painting, driveway, grading, sodding and landscaping," or similar wording. The legal transfer of the house should take place only after the municipality has approved the plumbing, electrical and gas systems to verify that the house is ready for occupancy. Buyers may be required to pay the builder in full on closing even when there is still work outstanding. The contract may make provisions for holdbacks to account for unfinished work such as seasonal items that cannot be completed by closing. In such cases, the buyer holds back a certain amount from the final payment; this money is usually placed in trust with a lawyer/notary. Check the contract for details. Be aware that financial institutions may require a certain degree of completion before releasing mortgage funds. Ask your lender about their policy, if you believe there may be significant work outstanding on your home on closing, such as siding or brickwork.
"This is the whole agreement"	Many contracts also include a statement noting that "the final Agreement (i.e. contract) supersedes all previous agreements and understandings", or similar wording. In plain language, this means that any agreements or understandings that are not included in the written contract are not part of the deal. A salesperson may agree over the telephone to change the colour of the carpet, or a worker onsite may promise to move an electrical outlet, but if there is no written record of your request, there is little you can do about it if the change hasn't been made. That is why it is so important to deal with the appointed contact person only, and to get everything in writing.
Privacy and consent to disclosures Possible attachments: Authorization for disclosure Privacy policy	Much of the information that you provide to the builder is covered by privacy legislation. This includes your contact information; location of the property; construction and finishing details; payment instructions; and insurance and warranty information. Your builder will ask you to sign an authorization to relay this information to the company’s suppliers, the warranty program and other parties as relevant, including your condominium corporation, if applicable. The authorization will also specify that this information cannot be used except for those purposes. If you want further clarification, ask for the builder’s privacy policy.
Purchaser's acknowledgement	The purchaser acknowledges that he/she has read and understands this agreement and the terms, conditions, limits and exclusions as described therein. You may find a statement such as this in your builder's contract. Your builder may also go through the contract with you point by point, explaining the significance of each, and what it means. This is also your opportunity to ask questions—how do things work, what if, and so on. Also discuss with your lawyer/notary before you commit to the purchase — is there anything in the contract you should be worried about? Are you protected well enough? It is advisable that before signing the contract, you carefully read it in its entirety, seek the advice of your lawyer/notary and have all your questions answered to your satisfaction.

What Else Should I Know Before We Get to the Contract Signing?

Buying a new home is a big decision. Here are a few more things to consider before you sign on the dotted line.

Before you even sit down with a builder to "put it on paper", find out if you can "pre-view" a blank copy of their contract form. That way, you will know in advance what concerns you may have and what questions to ask. Also consider asking your lawyer/notary to review it and advise you on questions and points to discuss with your builder before writing up the contract.
Often you will deal with a builder's sales representative and not the "builder" personally, particularly when buying from a larger builder. The new home salesperson should be knowledgeable, professional and able to guide you through the whole sales process. If you are not comfortable with a sales representative, ask to deal with someone else. Also request that all decisions and agreements be written down, dated and signed by both parties. That way, both the administrative office and the construction department should have a clear record of everything agreed to in the sales office.
Don't sign anything unless you are ready. Don't let yourself get pressured into making a premature decision. Instead, ask the builder if they can hold the lot or house for 24, 48 hours or even longer for you — they usually will if they know you are seriously interested.
When you are purchasing a condominium, or strata lot home, as they are called in some parts of Canada, read the disclosure statement carefully to understand what items are part of your unit and which ones are common elements. Statements often include a description of the site and buildings, landscaping, common facilities and a proposed budget of expenses for the first few months of operation. Condominium buyers may have a cooling-off period — generally three to ten days — when they can review the disclosure statement. During this time, condominium buyers may cancel the deal with written notice to the builder.
Not all builders may allow changes to the standard clauses in their contract. This is a factor that you have to balance against the builder's reputation, the quality of the homes and the recommendations of past customers, as well as your own impressions of the builder.
Some builders may include allowances in the price of the home. Allowances are "lump sums" allocated to finishing products, for instance, lighting, flooring or/and kitchen cabinets. Homebuyers can decide themselves how to spend this money, often working directly with the builder's suppliers. If your choices end up costing more or less than the allowance, the price of your home will be adjusted accordingly on closing. It is not uncommon for allowances to be set at the low end, so it may be wise to allocate additional money for finishing products to make sure you can get what you want.
A new home contract is most often a "living document"that keeps growing, with the addition of schedules, attachments, waivers, colour selections, change orders and so on. Start a file and keep a copy of everything. Read everything in the file, even the smallest print. Also keep note of all meetings and discussions with the builder — a good paper trail makes for a good relationship with your builder.
The purchase of a new home can be time-consuming. While your home is being built, you will have to be available to the builder, sometimes during working hours or at short notice, to deal with your obligations under the contract, such as colour selection or site inspections.

Buckingham Market Watch For Year End 2010

2012-01-24T09:14:00.001-08:00

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending December 31, 2011

During the period ending December 31, 2011 there were 4,786 residential sales in the market place this compares to 4,806 residential sales for the same period in 2010.
As of December 31, 2011 there were 9,364 residential listings received this compares to 9,779 in the same period for 2010 and is a decrease of 4%.

The sales to listings ratio (listings sold expressed as a percent of listings received) for the period was 51% in 2010 it was 49%.

The inventory of the active residential listings as of December 31, 2011 was 2,450, this compares to 2,629 in 2010. This is a decrease of 7% in active residential listings.

The average residential selling price was $169,972 for the period ending December 31, 2011. This is an increase of almost 4% from 2010.

The average listing during the period took 76 days to sell (75 in 2010) and sold for 95% of the list price.

For a similar report of statistics about condominiums sales, contact one of our sales representatives.

Statistics are provided courtesy of the Windsor Esssex County Real Estate Board.

All About Furnaces

2012-01-24T09:13:00.001-08:00

Replacing Your Furnace

There are usually two major reasons why you are choosing another forced-air furnace. The first is that your furnace does not function. It has just broken down, irrevocably, or it has been “red-tagged” or condemned by gas inspectors. If it is winter, and your house is getting colder quickly, you may not have the luxury of making a reasoned choice on what to buy next. The other situation is that your furnace is getting old, or your fuel bills are becoming too excessive to tolerate. In this case, you have the time to shop around and get the best furnace and fuel for your situation.
This About Your House is written to address both situations. If you have a dead furnace and a chilly house, you will probably take some shortcuts in your selection process.

Choice of Fuels

For many years, CMHC and others could offer sound advice on what fuel choice would be the most economical. During that period, heating systems based on electricity or propane cost the most to operate. Heating oil was somewhat more economical, and natural gas (if available in your community) was the least expensive choice.
Since 2000, the prices of these commodities have been fluctuating, and it is difficult to offer reliable advice on pricing. At one point in 2001 – 2002, heating with electricity in Manitoba was as economical as heating with natural gas. Predicting these prices over the next two decades (a common life span for a furnace) is nearly impossible. The best advice is to make a calculation based on the current prices quoted to you in your locality. See the text box entitled “Calculating fuel costs.”

Calculating Fuel Costs

Here is a rough comparison of the relative costs of heating an older house in Ottawa. You can put in your own fuel prices and the efficiencies of the appliance that you are choosing to compare relative costs.

Note: It is often difficult to isolate the cost per unit of fuel, be it gas or electricity. Include all the costs that relate to the m³ of consumption for gas (for example, gas supply charge, gas delivery charges, gas surcharges). Electric utilities often also have a bewildering range of charges. Apply all the charges except fixed charges (for example, $10/month connection charge).
For oil appliances, use an energy content of 38.2 MJ/litre of oil. For electricity, use 3.6 MJ/kWh and 100-per-cent efficiency.
Note: 80 GJ (or 80 gigajoules) is the energy required for heating the example house over the winter (heat load). Your own house will likely be different. However, the relative costs calculated for alternative fuels and furnaces in the example house should help you make a selection for your house.

Furnace Sizing

You probably do not need a furnace with the output of your current furnace. Most furnaces in Canadian houses can provide far more heat than the house requires. A properly sized furnace will be running almost continuously during the coldest day of the winter. Having a furnace of a correct size will result in efficient operation during the whole heating season. A grossly oversized furnace will run only for a short period, never coming up to peak efficiency. Note, however, that sizing may not be a big issue with high-efficiency, condensing gas furnaces. Due to the design of condensing appliances, they are efficient even when oversized.
So, how do you size your furnace? You can have the contractor use a home heat loss calculation that is available from Canadian Standards Association (CAN/CSA F280) or a sizing procedure from the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI). Having a proper sizing will cost you $150 – $300 from a qualified contractor.
Those who keep their heating bills, and who are mathematically inclined, can try the calculation in the text box entitled “Calculating house heat loss from utility bills.”

Calculating House Heat Loss from Utility Bills

Here is a sample calculation, using a three-month meter reading for a typical house. You can use any period (but at least two weeks of winter weather is necessary). You can read the meter yourself for the information, look at your furnace bills or phone your utility to see if they have appropriate records. The natural gas usage of other gas-fired appliances in the house is estimated from gas utility data and subtracted from the total for the period in question, so that the gas requirement for heating can be isolated. (Oil furnaces are harder to size using this method, but it may be possible using oil fill-up intervals and the number of litres delivered.)
The goal is to find a relationship between the gas consumed and the heating degree days (HDD). A heating degree day is essentially the number of degrees of heating required over the course of 24 hours, compared to a reference temperature of 18°C. For example, if the average daily outside temperature is 10°C, then the number of heating degree days for that day is 18°C - 10°C = 8 HDD. You can get the approximate HDD for your calculation period from the Environment Canada website. Use the data from the “Degree Days: Below 18°C” row.
Once the relationship of the HDD and gas consumption is established, then you can calculate gas consumption for the design temperature in your area. This temperature is usually available from a mechanical contractor or your local building officials. It is not the extreme minimum temperature; it can be estimated from the average temperature over 24 hours on the coldest day of the winter. To approximate the design temperature: go to the historical weather data for your community on the Environment Canada website; find the coldest January over the last several years; then pick out the lowest daily average temperature in that month; and use that as the design temperature. Being a degree or two out will not make a huge difference in the calculation.
The example below uses a design temperature of -35°C. At that temperature, the maximum HDD per day is equal to 53, which is the difference between 18°C and -35°C. Calculating the size of the furnace necessary on the coldest day of the year will mean that the furnace has the capacity to handle any expected local temperature. You can find a furnace’s efficiency rating on its EnerGuide label or in the product documentation.
Example
Total gas consumption from December to March = 1,320 m³Estimated consumption for other gas appliances (data from utility) = 306 m³Therefore, gas consumption during the period for heating = 1,320 - 306 = 1,014 m³Heating degree days for that period (from Environment Canada data) = 2,840 HDD
Heating consumption by degree day = 1,014 m³/ 2,840 HDD = 0.3570 m³/HDD
Heating consumption at 53 HDD/day = (53 HDD/day)(0.3570 m³/HDD) = 18.9 m³/day
Where gas has an energy content of 37.5 MJ/m³, and the existing furnace has an efficiency of 72 per cent, then:
Heat loss at 53 HDD/day = (18.9 m³/day) (37.5 MJ/m³)(0.72) = 510 MJ/day or 21.3 MJ/h*
According to the energy content of electricity, 3.6 MJ/h = 1 kW, then 21.3 MJ/h = 5.9 kW
This heat loss would require a furnace that produces an output of 5.9 kW or about 20,100 Btu/h (1 kW is approximately 3,412 Btu/h).
If we allow the CAN/CSA F280 permissible oversizing of 40 per cent, then the proper furnace sizing would be (1.4)(20,100 Btu/h) = approximately 28,100 Btu/h.
If you are calculating for an oil furnace, heating oil has an energy content of 38.2 MJ/litre.
* Note: This calculation is correct, although many people think the efficiency factor is in the wrong place. It is not. We are calculating the house heat loss based on fuel used and furnace efficiency. A more efficient furnace will have delivered more heat to the house, and the heat loss will be higher.

Furnace Efficiency

There is a wide range of furnace efficiencies, although only high-efficiency gas furnaces are sold in Canada as of 2010. The range of efficiency will vary by fuel.
Electric furnaces work on electric resistance. The full 100 per cent of the energy consumed goes towards the heating of the house. The inefficiencies with electric heating happen before the electricity reaches your house. If the electricity is created by burning fuels, there are inefficiencies in that process plus losses as the electricity moves through the lines.
Oil furnaces have become far more efficient since the height of their popularity in the mid-twentieth century. Efficiencies have risen from roughly 60 per cent to well over 80 per cent as a result of advanced technologies — first to flame retention head burners and then to high static pressure burners. The more efficient oil furnaces require a better chimney than their conventional counterparts, so you will probably need to upgrade the chimney with a stainless steel liner inside the old clay tile. Make sure this is included in the quote.
Failure to have a properly sized chimney will result in excessive chimney condensation and eventual destruction in the case of masonry chimneys. There are high-efficiency, condensing oil furnaces as well. Earlier versions had reliability problems. The new generation, launched in 2003, may have resolved these difficulties.
New gas furnaces in Canada are high-efficiency (89 – 96 per cent) condensing furnaces. The high-efficiency furnaces use a plastic vent and are most often vented out the side wall. Propane furnaces are usually modified natural gas equipment.

So… What Do I Buy?

Here are the most common questions about furnace replacements to CMHC staff from Canadians, and our usual answers:
Should I switch my heating fuel?
In most parts of Canada, it will be more expensive to heat with an electric furnace than one using oil or gas. An exception would be if you heat primarily with a wood stove and use the furnace only infrequently as backup. In this case, the low cost and low maintenance requirements of an electric furnace may be a major advantage. Deciding between oil and gas furnaces is a matter of choice. Make the calculation to see if it is significantly cheaper to use one fuel or another based on current prices in your area. Oil furnaces require a tank and usually a chimney. There may be additional costs for chimney modification or oil storage tanks when purchasing an oil furnace. Some home insurance companies require periodic oil tank replacements. Check if a new gas furnace would also require relining the chimney. Consult with your contractor and make sure that these costs are included in your estimates.
Some dealers recommend a furnace of 100,000 Btu/h, and some say 80,000 Btu/h will be fine. How do I choose?
See the previous discussion on sizing. If you are buying an oil furnace, proper sizing will affect the durability and efficient operation of your appliance. Your choices are either to pay for a proper heat loss analysis, to calculate house heat loss or to accept the dealer's estimate. Sometimes government or utility programs subsidize house testing. If such a program is in effect in your vicinity, this can be an economical way to have your house heating load established.
Are there any advantages to multi-stage, multi-speed furnaces?
Multi-stage furnaces have become more popular lately, although they are more expensive than the single stage furnaces that have been sold for decades. Multi-stage furnaces have two or three levels of burner function, and an efficient, modulating circulation fan to move the heat into the house. They can provide additional heat when a quick temperature rise is required, such as in the morning when a house with a setback thermostat is being heated from 15°C to 21°C (59°F to 70°F). A traditional single speed furnace would take longer to get up to temperature. The multi-stage furnaces are no more efficient than single-stage furnaces; they offer more flexibility and perhaps more comfort.
Is Furnace "A" better than Furnace "B"? How can I find that out?
There is little or no available data to show that one manufacturer's furnace will operate longer and with less trouble than a furnace from another manufacturer. This is frustrating for consumers. We are used to being able to read ratings of one product versus another product and to make a choice based on those ratings. However, a good furnace will last 25 years. A poor one may break down prematurely at 15 years. With lifetimes of this length, and with furnace design and model changes, it is hard to predict which furnace will provide the best service.
There are two factors to help you in your choice. Pick a furnace with a long heat exchanger warranty, 20 years or more. If manufacturers are willing to back the most expensive part of their appliance for a long time, this should inspire some confidence. Also, pick a furnace manufacturer and a dealer that have been in business for a significant period of time. A furnace with a lifetime warranty offered by a company that has been in operation for only three years may not be the best deal. One would expect to pay less for this level of uncertainty. Look for contractors with memberships in trade organizations such as HRAI, which would indicate an interest in professional qualifications.

The Hot Water Heater Conundrum

There are very few high-efficiency hot water heaters available. Changing your furnace may lead to having to think about your hot water heater. Existing hot water heaters are often located vertically below the kitchen and bathrooms, where the water is used. If you are changing from an electric to a conventional gas hot water tank, and the new gas appliance has to be installed across the basement to be near the chimney, you will be waiting longer for the hot water at the tap. Consider a gas hot water tank that has side-wall venting and does not require a chimney. This way, it can stay close to the plumbing appliances that use it.
Another hot water tank issue can occur when you switch from a conventional gas furnace and hot water tank to a new, high-efficiency side-wall vented furnace. Now the hot water tank has to heat up that big chimney all by itself, and you probably will have to pay for chimney relining. It is often better, when choosing a chimneyless furnace, to switch your hot water tank to side-wall venting at the same time and seal the old chimney closed. However, side-wall vented hot water heaters are more expensive than conventional hot water heaters and can be noisier.
Instantaneous hot water heaters, which do not use a storage tank, are becoming more common. They may be more economical to operate.

Furnace Circulating Fan Choices

Most furnace circulating fans consume high amounts of electricity (300 – 700 watts). If you will be using your furnace circulating fan to move ventilation air around the house (for instance, if you have a heat recovery ventilator connected to it, or a high-efficiency air cleaner on the furnace), then look at upgrading the circulating fan to a high-efficiency DC motor. The best furnace fans now will use less than 100 W on low speed. This will result in considerable electrical savings over the life of the furnace.

Other Choices

When replacing the furnace, you may want to look at integrated systems that heat your house and your water and also provide ventilation. Devices known as “combo” units provide house and water heating. New appliances with advanced, integrated systems will provide ventilation as well as space and water heating. For some replacements, these integrated appliances will be your best choice.

Additional Resources

For further detailed information on all heating appliances, there are excellent booklets published by Natural Resources Canada in the Heating and Cooling Series.

Carbon Monoxide and the Home

2012-01-24T09:12:00.001-08:00

Carbon Monoxide

The presence of carbon monoxide (CO) in our homes is dangerous. So, how can you protect your family from carbon monoxide? How do you choose the right CO detector for your home? The first step is to make sure that carbon monoxide never enters your home. The second step is to install at least one CO detector in your home.
This About Your House answers often-asked questions about carbon monoxide to help you make the right decision to make your home safe.

What Is Carbon Monoxide?

Carbon monoxide (CO) is a colourless and odourless gas. Because you can’t see, taste or smell it, it can affect you or your family before you even know it’s there. Even at low levels of exposure, carbon monoxide can cause serious health problems. CO is harmful because it will rapidly accumulate in the blood, depleting the ability of blood to carry oxygen.¹

Where Does Carbon Monoxide Come From?

Carbon monoxide is a common byproduct of the combustion (burning) of fossil fuels. Most fuel-burning equipment (natural gas, propane and oil), if properly installed and maintained, produces little CO. The byproducts of combustion are usually safely vented to the outside. However, if anything disrupts the venting process (such as a bird’s nest in the chimney) or results in a shortage of oxygen to the burner, CO production can quickly rise to dangerous levels.
The burning of wood, kerosene, coal and charcoal produces CO. Gasoline engines produce CO. CO production is at a maximum during the startup of a cold engine. Starting, then idling, your car or gas mower in the garage can be dangerous. The fumes that contain CO can enter a home through connecting walls or doorways and can quickly rise to dangerous levels.

How Can I Eliminate Sources of Carbon Monoxide in My Home?

The most important step you can take to eliminate the possibility of CO poisoning is to ensure that CO never has an opportunity to enter your home. This is your first line of defence. Review this list to minimize the risk of CO in your home.

Have a qualified technician inspect and clean fuel-burning appliances yearly, before the cold weather sets in, to ensure they are in good working order.
Have a qualified technician inspect chimneys and vents yearly for cracks, blockages (e.g., bird’s nests, twigs, old mortar), corrosion or holes.
Check fireplaces for closed or blocked flues.
Check with a qualified technician before enclosing heating and hot water equipment in a smaller room, to ensure there is adequate air for proper combustion.
If you have a powerful kitchen exhaust fan or downdraft cooktop, have a qualified technician check that its operation does not pull fumes back down the chimney.
Never use propane or natural gas stove tops or ovens to heat your home.
Never start a vehicle in a closed garage; open the garage doors first. Pull the car out immediately onto the driveway, then close the garage door to prevent exhaust fumes from being drawn into the house.
Do not use a remote automobile starter when the car is in the garage; even if the garage doors are open.
Never operate propane, natural gas or charcoal barbecue grills indoors or in an attached garage.
Avoid the use of a kerosene space heater indoors or in a garage. If its use is unavoidable provide combustion air by opening a window while operating. Refuel outside after the unit has cooled.
Never run a lawnmower, snowblower, or any gasoline-powered tool such as a whipper snipper or pressure washer inside a garage or house.
The use of fossil fuels for refrigeration, cooking, heat, and light inside tents, trailers, and motorhomes can be very dangerous. Be sure that all equipment is properly vented to the outside and use electric or battery-powered equipment where possible.
Regularly clean the clothes dryer ductwork and outside vent cover for blockages such as lint, snow, or overgrown outdoor plants.
Reduce or eliminate the use of fondue heaters indoors.
If you live close to a road with heavy traffic, outdoor carbon monoxide levels can affect your indoor air quality, especially during rush hour. Such levels should not set off a CO alarm, but slightly elevated CO levels might be observable on some types of CO detectors with a digital display.

Carbon Monoxide Detectors

Are They Really Necessary?

If you take the actions above, you greatly reduce your risk of CO poisoning. But unanticipated dangerous incidents may still occur despite your best efforts to avoid CO. The installation of at least one CO detector in your home is a good safety precaution and in some municipalities, it is the law. A detector might be your second line of defence, but it is necessary. You should have one in your home today.

How Do CO Detectors Work?

There are three basic types of CO sensors — metal oxide, biomimetic and electrochemical. Note that while there may be performance differences between these technologies, all detectors are tested and approved for their operation. The retail cost of a detector will generally relate to the number of features included and its warranty conditions.
Metal-oxide-semi-conductor (MOS)
This is the original technology for detecting CO. Heated tin oxide reacts with CO to determine the levels of the toxic gas. There is no need to remember to check batteries as units must be connected to house power. Models that offer up to 20 hours of battery backup are available.
Biomimetic
Biomimetic detectors have gel-coated discs that darken in the presence of CO and the colour change sounds an alarm. This technology is less expensive and can be battery operated.
Electrochemical
In this type of detector, a chemical reaction with CO creates an electrical current that sets off an alarm. Electrochemical detectors are highly sensitive and offer accurate readings at all CO levels. Most units come with a continuous digital readout and a memory feature that allows you to check past CO levels. This technology offers a fast reset time. Most units sound an alert when the sensor needs to be replaced.

What Features Should I Look for When Purchasing a CO Detector?

Most CO detectors are designed to give an alarm when CO levels reach a high level in a short time. However, health agencies advise that long-term, low-level exposure is also of concern, especially for the unborn and young children, the elderly and those with a history of heart or respiratory problems.¹ Detectors that can display both high and low levels are more expensive but they do provide greater accuracy and more information.
Here are some features to consider when purchasing a CO detector:

Look for a detector that is listed with the Canadian Standards Association (CSA) standard. The logos of the testing agency will be on the product.
Choose a detector with a memory if you want to monitor long-term, low-level exposure and short-term, high-level exposure. Even though product standards do not allow manufacturers to display low levels of CO, these units monitor and store this information. Peak levels, no matter what the level of concentration, can be viewed by pressing a button.
Battery-operated units allow detector placement in the most convenient location. However, any battery-operated device requires the user’s diligence in replacing worn-out batteries.
Do not connect plug-in units to an electrical outlet that is controlled by a wall switch.
No detectors will operate properly forever. Replace them at least every five years, unless the manufacturer specifies a shorter or longer life. Eventually, manufacturers may be required to print expiry dates on their CO detectors. This will ensure that you are purchasing an up-to-date product with a full sensor life.

Detector Sensitivity Issues

The standards organizations of Canada (CSA) and the United States (Underwriters Laboratories or UL) have coordinated the writing of CO standards and product testing. The standards as of 2010 prohibit showing CO levels of less than 30 ppm on digital displays. The most recent standards also require the alarm to sound at higher levels of CO than with previous editions of the standard. The reasoning behind these changes is to reduce calls to fire stations, utilities and emergency response teams when the levels of CO are not life threatening. This change will also reduce the number of calls to these agencies due to detector inaccuracy or the presence of other gases. Consequently, new alarms will not sound at CO concentrations up to 70 ppm. Note that these concentrations are significantly in excess of the Canadian health guidelines.
Detectors with a digital display and a “history” option can provide the true CO concentrations in a house. A low-level display would be useful for people with existing respiratory problems or for those who like to spot evolving problems, rather than having to wait for the situation to become serious. Low-level CO detection products are becoming commercially available. They will not be certified to CSA or UL standards, as these standards currently prohibit low-level displays.

Where Do I Put a CO Detector?

Most manufacturers specify where you should locate their CO detector. In general, the best place to put the detector is where you will hear it while sleeping. CO is roughly the same weight as air and distributes evenly throughout a room, so a detector can be placed at any height in any location, as long as its alarm can be heard. Additional units could be installed in several other locations around the home, such as a child’s bedroom; check the following list before installing.
To avoid both damage to the unit and to reduce false alarms, do not install CO detectors:

in unheated basements, attics or garages
in areas of high humidity
where they will be exposed to chemical solvents or cleaners, including hair spray, deodorant sprays, etc.
near vents, flues or chimneys
within 2 m (6 ft.) of heating and cooking appliances
near forced- or unforced-air ventilation openings
within 2 m (6 ft.) of corners or areas where natural air circulation is low
where they can be damaged, such as an outlet in a high traffic area
where directly exposed to the weather.

Testing Your CO Detector

Most CO detectors have a test button that should be pressed once a week to confirm that the device is in operation. Detectors with displays can be tested with a known source of CO such as smoke from an incense stick. Hold the CO source about 20 – 25 cm (8 – 10 in.) away and watch the digital display respond to the presence of even a small amount of CO, but an alarm will most likely not sound with this test.
There are CO detector test kits available, where CO detectors are sold, that provide a vial containing a high level of CO (1,000 ppm) and a plastic tent to house the unit during the test. This test only proves that your detector will sound an alarm with a very high level of CO.

What Do I Do if I Hear the Carbon Monoxide Detector Alarm?

Do not ignore the CO detector’s alarm if it sounds. Treat each alarm as serious and respond accordingly. CO detectors are designed to sound an alarm before a healthy adult would feel any symptoms. Infants, the elderly and those with respiratory and heart conditions are at particular risk and may react to even low levels of CO poisoning.¹

Response to an Obvious Source of CO

If your detector sounds an alarm and you have an obvious source of CO, such as an unvented kerosene heater:

evacuate the house, including pets and do a head count
if anyone is suffering from flu-like symptoms, call 911
remove or turn off the source
ventilate the house
reset the alarm
do not re-occupy the house until the alarm ceases
take steps to avoid this situation in the future.

Response to an Unknown Source of CO

If your CO detector is sounding an alarm and there is no obvious source of CO:

evacuate the house, including pets and do a head count
if anyone has flu-like symptoms, call 911; if there are no health problems, call your gas utility, heating contractor or the fire department to have your house tested
if you live in a single-family home: do not ventilate your home, turn off fuel-burning appliances or reset your CO detector prior to someone testing your home. Many CO alarm calls have been classified as "false alarms" because the homeowner had ventilated the home and turned off the equipment before firefighters or technicians could measure the CO levels and find the source
if you live in a duplex, row house, apartment, or otherwise attached house, do ventilate the house and turn off fuel-burning appliances. In this case, the safety of your neighbours is more important than trying to find the CO source
have a qualified service technician inspect and repair all fuel-burning appliances, if they are identified as being the CO source
do not re-occupy the house unless those who tested the house inform you that the danger is over.

Symptoms of Carbon Monoxide Poisoning²

Be sure that all members of your family know the symptoms of CO poisoning:

Mild Exposure

Flu-like symptoms such as headache, running nose, sore eyes, etc.

Medium Exposure

Drowsiness, dizziness, vomiting. The sense of disorientation and confusion may make it difficult for some victims to make rational decisions like leaving the home or calling for assistance.

Extreme Exposure

Unconsciousness, brain damage, death.

Continued Low-level Exposure to CO

While this may be not lead to observable symptoms, you should still avoid such exposure.
Table 1 — Carbon monoxide concentrations and their effects

CO concentration in parts per million (ppm)	Effects
0 – 2	Normal conditions in and outside Canadian houses.
10	Recommended exposure limit over a 24-hour period.³
25	Recommended exposure limit over a 1-hour period.³
30	CO detectors are not allowed to sound alarm unless this concentration is maintained for more than 30 days.²
70	CO detectors must sound alarm within 1 to 4 hours.²
150	CO detectors must sound alarm within 10 to 50 minutes.²
200	Slight headache, fatigue, dizziness and nausea after 2 to 3 hours. CO detector alarm must sound within 35 minutes.⁴
400	CO detectors must sound alarm within 4 to 15 minutes.²
800	Dizziness, nausea and convulsions within 45 minutes, death within 2 to 3 hours.⁴
1,600	Death within 1 hour.⁴
13,000	Danger of death after 1 to 3 minutes.⁴

¹ Canada. Health Canada, Exposure Guidelines for Residential Indoor Air Quality (Ottawa: Ministry of Supply and Services Canada, 1989).

² Canadian Standards Association, CAN/CSA 6.19-01: Residential Carbon Monoxide Alarming Devices (Canada: Canadian Standards Association, 2001).

³ Canada. Health Canada, Residential Indoor Air Quality Guideline: Carbon Monoxide (Ottawa: Minister of Health, 2010). Available online at http://www.hc-sc.gc.ca/ewh-semt/pubs/air/carbon_mono/index-eng.php

⁴ T. H. Greiner, Carbon Monoxide Poisoning (AEN-172) (Ames: Iowa State University of Science and Technology, 1997).

Last revised: 2011

Are you Financially Ready to Own Your Own Home?

2012-01-21T12:03:00.000-08:00

How can you know if you are financially ready to become a homeowner?
This step guides you through some simple calculations to figure out your current financial situation, and the maximum home price that you should consider.

How Much are You Spending Now?

Calculate Your Household Expenses

Start figuring out your financial readiness by evaluating your present household budget. How much are you spending each month? Knowing exactly how much, will give you a better idea about whether you can afford to become a homeowner.
The Current Household Budget worksheet helps you take a realistic look at your current monthly expenses.
Or, you may also use the CMHC Household Budget Calculator to complete your current household budget now.

Calculate Your Monthly Debt Payments

Do you know how much debt you are carrying? You need this information to figure out whether you are financially ready for homeownership. If you decide to buy a home, mortgage lenders will ask for this information.
Use the form below to determine your current monthly debt payments. Fill in all the figures that apply to you, and then press the Calculate button. When you have finished, print the form. If you cannot print, write down the total on a sheet of paper.

Calculate Your Total Monthly Expenses

Your total monthly expenses are your household expenses plus your debt payments. To calculate your monthly expenses, add the total from the Current Household Budget as Homeowner to the total from Monthly Debt Payments form, using the form below.

Household expenses (Total from Current Household Budget)	Debt Payments (Total from Monthly Debt Payments form)	TOTAL

How Much Can You Afford?

Before you begin shopping for a home, it’s important to know how much you can afford to spend on homeownership. You will want to plan ahead for the various expenses related to homeownership. In addition to purchasing the home, other significant expenses will include heating, property taxes, home maintenance and renovation as required. Two simple rules can help you figure out how much you can realistically pay for a home. You must understand these rules to understand if you will be able to get a mortgage.

Affordability Rule 1

The first rule is that your monthly housing costs shouldn't be more than 32% of your gross monthly income. Housing costs include your monthly mortgage payments (principal and interest), property taxes and heating expenses. This is known as PITH for short — Principal, Interest, Taxes and Heating.

If you are thinking of buying a condominium or leasehold tenure

For a condominium, PITH also includes half of the monthly condominium fees.
For leasehold tenure, PITH also includes the entire annual site lease.

Lenders add up your housing costs and figure out what percentage they are of your gross monthly income. This figure is called your Gross Debt Service (GDS) ratio. To be considered for a mortgage, your GDS must be 32% or less of your gross household monthly income.

Affordability Rule 2

The second rule is that your entire monthly debt load should not be more than 40% of your gross monthly income. Your entire monthly debt load includes your housing costs (PITH) plus all your other debt payments (car loans or leases, credit card payments, lines of credit payments, etc.). You have calculated these on the Monthly Debt Payments form. This figure is called your Total Debt Service (TDS) ratio.
Fill in the tables below to determine your GDS and TDS ratios.

GDS Ratio
Your gross monthly salary (before deductions)*
Your spouse’s gross monthly salary (before deductions)
Other monthly income (from investments or other non-employment sources)
(A) Total monthly income (add up all amounts)
(B) Multiply amount (A) X 0.32 = GDS
* Gross salary is income before taxes.

TDS Ratio
(A) Total monthly income (A) from your GDS calculation
(B) Multiply (A) X 0.40 = TDS

Add up your monthly payments for loans, credit cards and other debts
Monthly auto payment
Monthly line of credit or personal loan payment
Monthly credit card payment
Monthly student loan payment
Any other monthly payments
(C) Add up the total monthly payments listed above
(D) Subtract (C) from (B) to find the monthly housing costs you can afford

Your Maximum House Price

The maximum home price that you can realistically afford depends on a number of factors. The most important factors are your household gross monthly income, your down payment and the mortgage interest rate. For many people, the hardest part of buying a home — especially their first one — is saving the necessary down payment.

Calculate Your Maximum House Price

Use the Mortgage Affordability Calculator below to figure out the maximum home price you can afford, the maximum mortgage amount you can borrow, and your monthly mortgage payments (including principal and interest).

Interest is compounded semi-annually not in advance. The interest rate is fixed for the term of the mortgage. The interest rate is usually renegotiated at the end of the term of the mortgage.
Minimum down payment may vary.
These calculations are approximate. They do not account for the payment of CMHC Insurance Premiums, applicable sales taxes, closing costs, or other fees that may be required.

CMHC Mortgage Calculator is for general illustrative purposes only. The amounts it projects are based upon assumptions and estimates made according to generally accepted principles for mortgages in Canada. CMHC cannot guarantee the projections. Actual payment amount must be obtained from your lender. Neither CMHC nor any of its advisors shall have any liability for the accuracy of this information.

Mortgage Loan Insurance

Mortgage loan insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% — with interest rates comparable to those with a 20% down payment.
The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums. The cost for Mortgage Loan Insurance premiums is usually offset by the savings you get from lower interest rates.

Financing Required	Premium % of Loan
Up to and including 65%	0.50
Up to and including 75%	0.65
Up to and including 80%	1.00
Up to and including 85%	1.75
Up to and including 90%	2.00
Up to and including 95% Traditional Down Payment Non-traditional Down Payment	2.75 2.90
Extended Amortization Surcharges Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period. Note: The amortization cannot exceed 30 years for mortgage loan-to-value ratios > 80%.
* Premiums in Ontario and Quebec are subject to provincial sales tax. The provincial sales tax cannot be added to the loan amount.

Do Your Calculations Look Encouraging?

What is your current financial situation? After doing the calculations, do you feel fairly confident about beginning the homebuying process? You’re ready to proceed with homeownership.

Do Your Calculations Look Discouraging?

You may need to step back and make some improvements. Did your calculations show that you might have trouble meeting monthly debt payment? If that’s the case, you may find it difficult to get approved for a mortgage. Here are some things you can do to improve your situation:

Pay off some loans first.
Save for a larger down payment.
Take another look at your current household budget to see where you can spend less. The money you save can go towards a larger down payment.
Lower your home price — remember that your first home is not necessarily your dream home.

Here are some more helpful strategies:

Meet with a credit counsellor. He (or she) can help you figure out how to minimize your debts.
Buy your home through a rent-to-own program. These are sometimes provided by the builder or a non-profit sponsor.
Find out about programs through which you can help build your own home.
Ask the housing department of your municipality if any special programs exist.

What are Your Next Steps?

Get a Copy of Your Credit Report

Before approving a mortgage, lenders will want to see how well you have paid your debts and bills in the past. To do this, they consider your credit history (credit report) from a credit bureau. This tells them about your financial past and how you have used credit.
Before looking for a mortgage lender, get a copy of your own credit history. There are two main credit-reporting agencies: Equifax Canada Inc. and TransUnion of Canada. You can contact either one of them to get a copy of your credit report. There is often a fee for this service.
Once you receive your credit report, examine it to make sure the information is complete and accurate.

If you have no credit history

If you have no credit history, it is important to start building one by, for example, applying for a standard credit card with good interest rates and terms, making small purchases and paying them as soon as the bill comes in.

If you have a poor credit history

If you have poor credit, lenders might not be able to give you a mortgage loan. You will need to re-establish a good credit history by making debt payments regularly and on time. Most unfavourable credit information (including bankruptcy) drops off your credit file after seven years.
Consider getting some credit counselling if you have a history of poor credit or talk to your lender to discuss options.

Get a Mortgage Pre-Approval

It’s a very good idea to get a pre-approved mortgage before you start shopping. Many realtors will ask if you’ve been approved. A lender will look at your finances and figure the amount of mortgage you can afford. Then the lender will give you a written confirmation, or certificate, for a fixed interest rate. This confirmation will be good for a specific period of time. A pre-approved mortgage is not a guarantee of being approved for the mortgage loan.
Even if you haven’t found the home you want to buy, having a pre-approved mortgage amount will help keep a good price range in mind.
Bring these with you the first time you meet with a lender:

Your personal information, including identification such as your driver's license
Details on your job, including confirmation of salary in the form of a letter from your employer
All your sources of income
Information and details on all bank accounts, loans and other debts
Proof of financial assets
Source and amount of down payment and deposit
Proof of source of funds to cover the closing costs (these are usually between 1.5% and 4% of the purchase price)

Make Your Mortgage Work for You

Your lender or broker will offer you several choices to help find you the mortgage that best matches your needs. Here are some of the most common.

Amortization Period

Amortization refers to the length of time you choose to pay off your mortgage. Mortgages typically come in 25 or 30-year amortization periods. However, they can be as short as 15 years. Usually, the longer the amortization, the smaller the monthly payments. However, the longer the amortization, the higher the interest costs. Total interest costs can be reduced by making additional (lump sum) payments when possible.

Payment Schedule

You have the option of repaying your mortgage every month, twice a month, every two weeks or every week. You can also choose to accelerate your payments. This usually means one extra monthly payment per year.

Interest Rate Type

You will have to choose between “fixed”, “variable” or “protected (or capped) variable”. A fixed rate will not change for the term of the mortgage. This type carries a slightly higher rate but provides the peace of mind associated with knowing that interest costs will remain the same.
With a variable rate, the interest rate you pay will fluctuate with the rate of the market. Usually, this will not modify the overall amount of your mortgage payment, but rather change the portion of your monthly payment that goes towards interest costs or paying your mortgage (principal repayment). If interest rates go down, you end up repaying your mortgage faster. If they go up, more of the payment will go towards the interest and less towards repaying the mortgage. This option means you may have to be prepared to accept some risk and uncertainty.
A protected (or capped) variable rate is a mortgage with a variable interest rate that has a maximum rate determined in advance. Even if the market rate goes above the determined maximum rate, you will only have to pay up to that maximum.
Use the Mortgage Payment Calculator to find how much and how often your payment will be. Compare options and find one that's right for you.

CMHC Mortgage Calculator is for general illustrative purposes only. The amounts it projects are based upon assumptions and estimates made according to generally accepted principles for mortgages in Canada. CMHC cannot guarantee the projections. Actual payment amount must be obtained from your lender. Neither CMHC nor any of its advisors shall have any liability for the accuracy of this information.

Mortgage Term

The term of a mortgage is the length of time for which options are chosen and agreed upon, such as the interest rate. It can be as little as six months or as long as five years or more. When the term is up, you have the ability to renegotiate your mortgage at the interest rate of that time and choose the same or different options.

“Open” or “Closed” Mortgage

An open mortgage allows you to pay off your mortgage in part or in full at any time without any penalties. You may also choose, at any time, to renegotiate the mortgage. This option provides more flexibility but comes with a higher interest rate. An open mortgage can be a good choice if you plan to sell your home in the near future or to make large additional payments.
A closed mortgage usually carries a lower interest rate but doesn’t offer the flexibility of an open mortgage. However, most lenders allow homeowners to make additional payments of a determined maximum amount without penalty. Typically, most people will select a closed mortgage.

Up-front Costs

TED AND SHAYLA

Ted and Shayla have found a newly built home. The asking price is $200,000 including the GST.
After adding together wedding gifts, a small inheritance and other savings Ted and Shayla found that they have $28,900.

Figure Out the Up-front Costs

There are many up-front costs when you buy a home. Early planning will help make sure things go smoothly.

Down Payment

A down payment is the part of the home price that does not come from the mortgage loan. The down payment comes from your own money. You can buy your home with a minimum down payment of 5%, if you have mortgage loan insurance from CMHC. You need a down payment of at least 20% for a conventional mortgage.

Deposit

The deposit is paid when you make an Offer to Purchase to show that you are a serious buyer. The deposit will form part of your down payment with the remainder owing at time of closing. If for some reason you back out of the deal without having covered yourself with purchase conditions, such as financing, home inspection, etc., your deposit may not be refundable and you may be sued for damages. The size of the deposit varies. Your realtor or lawyer / notary can help you decide on the amount.

Appraisal Fee

Your mortgage lender may ask you to pay for a recognized appraisal in order to complete a mortgage loan. An appraisal is an estimate of the value of the home. The cost is usually between $250 and $350 and must be paid when you contract for those services.
Having an independent appraisal done on a property before you make an offer is a good idea. It will tell you what the property is worth and help ensure that you are not paying too much.
The appraisal should include:

Assessment of the property's physical and functional characteristics
Analysis of recent comparable sales
Assessment of current market conditions affecting the property

Ask your realtor or other member of your team to help you find an appraiser.

Mortgage Loan Insurance Premium

If you make less than a 20% down payment, you have a high-ratio mortgage. With a high-ratio mortgage your lender will need mortgage loan insurance. Mortgage loan insurance lets you buy a home with a minimum down payment of 5%.
Most Canadian lending institutions require mortgage loan insurance because it protects the lender. If the borrower defaults (fails to pay) on the mortgage, the lender is paid back by the insurer. You pay a premium for mortgage loan insurance. Your lender will add the mortgage loan insurance premium to your monthly payments, or ask you to pay it in full upon closing.

Mortgage Broker’s Fee

You may have decided to use a mortgage broker. The job of the mortgage broker is to find you a lender with the terms and rates that will best suit you.

Home Inspection Fee

CMHC recommends that you make a home inspection a condition of your Offer to Purchase. A home inspection is done by a qualified home inspector to provide you with information on the condition of the home. It generally costs about $500, depending on the age, size and complexity of the house and the condition that it is in. For example, it may be more costly to inspect a large, older, home, or one in relatively poor condition or that has many pre-existing problems or concerns.

Survey or Certificate of Location Cost

The mortgage lender may ask for an up-to-date survey or certificate of location. If the seller has a survey, but it is more than five years old, it will probably need to be updated. You should ask the seller to provide an updated survey, especially if there has been a new addition, deck or fence built close to the property line. If the seller does not have one, or does not agree to get one, you may have to pay for it yourself.
Remember, you must have permission from the property owner before hiring a surveyor to go onto the property. Ask your realtor to help co-ordinate this with the owner. A survey or certificate of location can cost $1,000 to $2,000.

Title Insurance

Your lender, lawyer, or notary may suggest that you get title insurance. This will cover loss caused by defects of title to the property.

Land Registration Fees

Land Registration fees are sometimes called Land Transfer Tax, Deed Registration Fee, Tariff or Property Purchases Tax. In some provinces and territories, you may have to pay this provincial or municipal charge when you close the sale. The cost is a percentage of the property’s purchase price. Check on the internet or with your lawyer (or notary) or other team member to find out about the current rates. These fees can cost a few thousand dollars.

Water Tests

If the home has a well, you will want to have the quality of the water tested to ensure that the water supply is adequate and the water is drinkable. You can negotiate these costs with the vendor and list them in your Offer to Purchase.

Septic Tank

If the house has a septic tank, it should be professionally checked to make sure it is in good working order. You may negotiate the cost with the vendor and list it in your Offer to Purchase.

Estoppel Certificate Fee (does not apply in Quebec)

This applies if you are buying a condominium, or strata unit, and could cost up to $100. Also called a Status Certificate it outlines a condominium corporation’s financial and legal state.

Prepaid Property Taxes and/or Utility Bills

Property taxes are charged by the municipality where the home is located. They are based on the value of the home. The seller may have already paid property tax or other expenses that apply to the time after the house passes into your hands. You need to pay back the seller for taxes and other costs (including items like filling the oil tank).

Property Insurance

The mortgage lender requires you to have property insurance because your home is security for the mortgage. Property insurance covers the cost of replacing your home and its contents in case of loss. Property insurance must be in place on closing day.

Legal Fees

Legal fees and related costs must be paid on closing day. The minimum cost is $500 (plus GST/HST). In addition, your lawyer or notary will charge you direct costs to check on the legal status of the property.

Other Costs

Depending on your situation, you may have some other initial expenses to consider:

Moving expenses
Whether you’ll be hiring a moving company, or renting a truck and asking friends for help, there are likely to be moving expenses.
Renovations or repairs
Can renovations, or repairs, be delayed, or are some necessary to do immediately?
Condominium Fees
Do you have to make the initial payment for these monthly fees?
Service connection fees
Telephone, gas, electricity, cable TV, satellite TV, Internet, and so on, may charge service connection fees. Some utilities may ask you to pay a deposit.
Appliances
Does your new home come with appliances? Do you already have your own?
Gardening equipment
Will you need to buy gardening equipment, the first summer in your new home?
Snow-clearing equipment
Will you need to buy snow-clearing equipment, the first winter in your new home?
Window treatments
Do blinds, or curtains come with the house?
Decorating materials
Do you want to re-paint or apply wallpaper? Do the floors need to be refinished or re-carpeted? Do you have all the tools you need for redecorating?
Hand tools
Do you have the basic hand tools you’ll need for your new home?
Dehumidifier
Will you need a dehumidifier to control moisture levels?

Use the Home Purchase Cost Estimate form to help figure out your estimated up-front costs.

Monthly Debt Payments	Average Monthly Amount
Loans for property you own
Car loans and leases
Personal loans or lines of credit
Credit cards
Student loans
Other loans

Buckingham Realty (Windsor) Ltd.

Market Watch August 2013

Market Watch Condominium Dec 31, 2012

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCHWindsor-Essex County Condominium MarketFor the Period Ending December 31, 2012

Market Watch Residential Dec 31, 2012

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCHWindsor-Essex County Residential MarketFor the Period Ending December 31, 2012

Buckingham October Market Watch

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCHWindsor-Essex County Residential MarketFor the Period Ending September 30, 2012

Banks Change Lending Rules In Canada June 2012

Mortgage Pre Approval - Windsor Essex Real Estate

Deadline for Request for Reconsideration April 2, 2012

Understanding Smart Meters - ENWIN

Smart Meters are Here

Everything Stays the Same

TOU Pricing is NOT in Effect

ENWIN Respects and Protects Your Privacy

Quick, Efficient Installation

Look for the Olameter Logo

Reliable and Secure

The Smart Energy Future

Smart Meter, Smart Consumer

Time-of-use (TOU) Prices

10 Smart Meter Lane

Windsor Essex Property Tax Rebates For Commercial and Industrial Buildings

Windsor Essex Property Tax Rebates For Commercial and Industrial Buildings

WINDSOR ESSEX PROPERTY THAT IS ELIGIBLE FOR A REBATE

Buildings that are Entirely Vacant

Buildings that are Partially Vacant

Exclusions

Seasonal Property:

Leased Property:

Vacant Land Sub-Class:

WINDSOR ESSEX APPLICATIONS -- CONTENTS AND PROCEDURES

Deadline for Submitting Applications

Number of Applications

Contents of Applications

Processing Applications

WINDSOR ESSEX AMOUNT OF REBATES

Calculation

Sample Calculation:

Recalculation following Change to Assessment or Taxes

WINDSOR ESSEX APPEALS

PENALTIES

FURTHER INFORMATION

New Home Sales Contracts Review

Understanding Your New Home Sales Contract

What’s in a New Home Contract?

What to look for in a contract

Why? Details, explanations

What Else Should I Know Before We Get to the Contract Signing?

Buckingham Market Watch For Year End 2010

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCHWindsor-Essex County Residential MarketFor the Period Ending December 31, 2011

All About Furnaces

Replacing Your Furnace

Choice of Fuels

Calculating Fuel Costs

Furnace Sizing

Calculating House Heat Loss from Utility Bills

Furnace Efficiency

So… What Do I Buy?

The Hot Water Heater Conundrum

Furnace Circulating Fan Choices

Other Choices

Additional Resources

Carbon Monoxide and the Home

Carbon Monoxide

What Is Carbon Monoxide?

Where Does Carbon Monoxide Come From?

How Can I Eliminate Sources of Carbon Monoxide in My Home?

Carbon Monoxide Detectors

Are They Really Necessary?

How Do CO Detectors Work?

What Features Should I Look for When Purchasing a CO Detector?

Detector Sensitivity Issues

Where Do I Put a CO Detector?

Testing Your CO Detector

What Do I Do if I Hear the Carbon Monoxide Detector Alarm?

Response to an Obvious Source of CO

Response to an Unknown Source of CO

Symptoms of Carbon Monoxide Poisoning2

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Condominium Market
For the Period Ending December 31, 2012

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending December 31, 2012

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending September 30, 2012

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending December 31, 2011

Symptoms of Carbon Monoxide Poisoning²