How to protect yourself against rising energy prices

A recent report by the Bank of Nova Scotia suggests that household energy and utility prices have risen by 5 per cent in 2014. According to the report, more than double what the rate of inflation is. There is a strong economic incentive for Canadians to start reducing their energy consumption in multiple ways, which will help slow the rise of energy prices.

The common risks to your household budget has largely been focused on obtaining a lower interest rate. While the pressure to keep rates low continue, the cost of oil, gasoline and natural gas has continued to rise. This has prompted Ontario gas utilities to sharply increase their monthly charges to customers.

Energy costs should figure into your household budget in a few ways:

• What the monthly heating bills are
• How new the furnace is
• Whether to buy a home in the city of suburbs and how close public transportation is
• What level of insulation there is in the attic

Another factor you should consider is high-rise apartments or condos, as well as town homes and semi detached homes use less energy than detached homes. 

Click here to read the full article from the Globe and Mail. 

What to look for in your home inspection

Whether you're buying your new home from a builder, or from a previous resident, a home inspection is a must before signing the mortgage papers. Hiring a qualified home inspector should be the first step, but there are things you can check independently as well. Below is a list that can be completed by any potential home buyer during a property walk-through.

Inspecting the grounds:

• Check for proper grading for drainage, and evidence of standing water.
• Ensure walkways, fences and any exterior structures, including railings, are in good condition.
• Look for cracks in the foundation and any damage to the siding.
• Windows should be properly sealed, and in good condition.

Inspecting the home's systems:

• Find out where the home's heating system is, review the operation, and check furnace filters.
• Locate the electrical panel and check individual breakers.
• Ensure all bathroom electrical outlets are equipped with the proper GFCI circuit interrupters.
• Locate the main water supply shut-off valve, and the shut off for any exterior water supply to prevent freezing in the winter.
• Locate smoke and carbon monoxide detectors.

Inspecting the interior:

• Check plumbing fixtures to ensure proper operation.
• Check basement for signs of moisture damage.
• All doors, locks and latches should be in good working order.
• If the home has a fireplace, ensure it is clean and operational.

Inspecting the kitchen:

• Exhaust fan should be in working order and vent to exterior.
• Check that all appliances are operational.
• Look for any signs of leakage under sinks.

Remember - before finalizing your purchase, a walk through from a licensed home inspector is a must. However, performing a few of these checks yourself beforehand can help narrow down your property search.

Keep in mind, no home will be perfect. Professional home inspections are developed to be extremely cautious, so chances are your inspector will find some fault with the property. This is one of the major reasons to ensure you are present during the inspection so the inspector can explain any issues, rather than simply reading about them in the report later.

The importance of a thorough home inspection

Before settling on a home, and finalizing mortgage funding, a home inspection is an absolute necessity. One of the most important issues explored in a home inspection is potential water damage. A thorough home inspection can save time, and costly repairs, in the future. This article from the Toronto Star's Moneyville gives a list of items home inspectors and potential owners alike should be aware of to prevent water damage.

Ensuring the roof is in good shape is of extreme importance in a home inspection. Necessary roof repairs can go unnoticed, and will tend to be expensive to fix, so ensure the home inspector looks at the roof. Asking the approximate age of the roof can be helpful as well, as most roofs are not meant to last more than 15 years.

Water in the basement is another potential issue no home owner wants to encounter. Check for cracks in the foundation, the slope of the ground around the house, rust stains, mould and water marks. Recent basement renovations are also something to keep an eye on. Some sellers may be trying to inexpensively cover damage.

Finally, a detailed inspection of the plumbing is a must, including checking for sewer backups. In this article, we learn that clients can have a video made of their sewer system to check for future issues. It is important to remember that not every home inspector will have the same checklist, so buyers are encouraged to do their own research and ask for referrals from mortgage brokers, Real Estate Agents or Lawyers.

Click here for the full article from Moneyville.