Saskatchewan

With the state of the current economy, the days of rubber stamped mortgages offered by banks with little proof of income are over. Looking to buy a Regina home and don’t have the money to simply write a cheque? You’ll need a mortgage, and keeping some key things in mind will help you find success in this new era of tightened lending.

Be ready to verify your income. While banks used to be content with a job letter before offering a loan, now they are also requiring a pay stub (or even two), and a T-4 or a notice of assessment. If you work over time, be sure to check with your lender to see if that income can be counted toward your mortgage qualification - it doesn’t always, since it isn’t guaranteed or as common anymore.

Work to maintain or raise your credit score. If you have very poor credit, getting a mortgage will be more difficult than it has been in the past. Those who have less than excellent credit will likely qualify for a mortgage, but will pay a little more in interest rates. If you have poor credit, or little down payment (you’ll need at least 5%), it might be a good opportunity to use the upcoming months to save more and pay down debt. When you re-enter the real estate market, you’ll be in a much better position to secure a mortgage.

Self-employed? Be ready to provide ample documentation to prove your income is within reasonable bounds for the size and type of business you do. If there are disparities between taxable and real income, lenders can refuse to provide a mortgage. Make sure the income you state is within those reasonable bounds if you’re stating your own income.

Educate yourself on the variety of mortgage options. If you do your homework, you’ll have a much better chance to choose the right mortgage for you, and give yourself the best opportunity to have everything the lender needs to make your approval process quick and easy.

If you’re not sure how much you can afford, visit this website to calculate a reasonable mortgage for your situation. And if you’re ready to begin your home search, give me, Clair Whittington, a call! I’d love to help you find the right home for you and your budget. Visit my website to learn more about how to choose the best home for you!

So, you've just become a new homeowner, or you're thinking of becoming one..... now, what is it going to cost to maintain it?

First, there's the one per cent rule, which claims that normal maintenance on a home is about one per cent of the value of the home per year. This means that a $250,000 home would cost about $2,500 per year to maintain. This would cover normal replacement of worn out components such as a failed water tank one year, roof repair another year, and the furnace the next.

Then there's the three per cent rule; some experts say that home buyers should plan on spending three per cent of the value of the home in the first year. This is because new homeowners will likely purchase blinds and/or drapes, change some or all of the decor and maybe buy some appliances.

A Home Inspection (before you buy) will give you an idea of what is wearing out and what will last for a while. For example, because the high efficiency furnace was installed a just a year ago, you likely won't be buying a new furnace for at least 15 years, since they last, on average, 15-20 years. Or you know the shingles have never been replaced, they're looking a little rough and the house is 18 years old; count on getting up on the roof (or hiring someone) in the next year or so. Asphalt shingles last approximately 12 -20 years. This is not a reason to not buy the house, not a defect, just a something to be aware of.

Here are the typical life cycles of the most common home components:

• Furnace > 15-20 years
• Air conditioning system > 12-15 years
• Water tank > 12 years
• Sink garbage disposal > 10 years
• Appliances > 12-20 years (varies substantially)
• Asphalt shingles > 12 - 20 years
• High-end asphalt shingles > 20-30 years
• Cedar shingles > 20-35 years
• Garage door opener > 10-15 years

Care and maintenance is the key. Generally anything will last longer if it is not abused, kept clean and dry, and used only for the purpose it was intended.

Attic Insulation
The attic is often the most cost-effective place to add insulation. Usually, a contractor blows loose fill into and over the top of ceiling joists. For the do-it-yourselfer, batts laid sideways on existing insulation are an easy alternative.

• The air barrier at the ceiling line must be tight to ensure warm moist air from the house does not get into the cold attic and condense in the winter. Check ceiling light fixtures, the tops of interior walls and penetrations such as plumbing stacks for air leakage.
• Ensure that soffit venting is not blocked by added insulation; baffles may have to be installed.

Wall Insulation for Existing Construction

The two most common wall types are wood-frame and solid brick. In a wood-frame wall, insulation (loose fill and some foams) is typically blown into the cavities through holes that have been drilled through the drywall or siding. In solid brick, the largest cavity is usually 25 mm (1 in.) wide, which is not enough for any significant increase in R value. The builder must create a cavity. Usually, a new cavity wall is built inside and insulated as a new wall, or board stock and new siding are applied to the exterior. When planning a cavity wall retrofit, remember the following:

• The cost of getting at and repairing the walls is a significant part of the work and cost of the project.
• Both air and vapour barriers are required. The interior painted drywall can be both an air and vapour barrier, but details at windows, electrical outlets, floors and other penetrations must be done carefully to reduce air movement through the wall as much as possible. Air movement can lead to mold growth and decay of the walls, as well as loss of insulation efficiency.
• An insulation must be selected that will completely fill the cavity and not settle. Some insulations, such as foams, can provide reasonable air barriers themselves.

Typically, this is a wood-frame wall with the potential for insulation in the stud cavity (batts or spray-applied) and on the exterior face of the studs (rigid insulation). See Figure 1. During planning and installation, note the following:

• The vapour retarder should be at or near the inside surface of the insulation and would most commonly be 6 mm (0.2 in.) polyethylene sheeting at the inside face of the studs or vapour-retardant paint on the finished drywall.
• The air barrier can be provided by the polyethylene vapour retarder, by the interior drywall or by air-barrier sheeting on the exterior face of the studs. In all cases, the air barrier must be carefully detailed to be continuous at all penetrations.
• Adding rigid (board-stock) insulation to the outside face of the studs minimizes thermal bridging. Spacing the studs at 610 mm (24 in.) rather than 406 mm (16 in.) where possible will also reduce thermal bridging.