How to conserve water at home

by Lorraine Gauthier - President, The Now House™ Project

Water requires electricity to actually pump it into our homes. So not only are we, you know, increasing overall use of electricity by virtue of using a lot of water, we're using a resource that around the world is scarce in many places. We just happen to be rich in water. But it makes sense for Canadians to look at conserving water as well.

First of all, simple aerators, the kind of things that reduce the flow on your kitchen taps or your bathroom taps. I mean, those are pretty important, and they really help to reduce water use and, of course, dual-flush toilets, that kind of thing. They use a lot less wear in the tank and therefore dramatically reduce your water use. The other ways are looking at rain barrels so you're actually capturing water from rain from your roof, and then you can reuse it to water your garden, water your flowers, that kind of thing.

If you're thinking of changing your water heater, one of the things you may want to look at is a tankless water heater. What that does is provide hot water when you need it, and in place of that big tank that normally sits in our basement heating water all day long, either using up gas or using electricity, a tankless water heater only uses energy when you need the hot water.

Find out more at the RBC Advice Centre.

How an energy audit can help you prioritize your renovations

by Mark Salerno - Sustainable Housing Expert, CMHC

There are many reasons and motivations for undertaking a renovation. It could be to maintain and repair. You may be retrofitting major components like a roof or a furnace.

No matter what your motivation, though, there's always an opportunity to actually improve the energy efficiency of your home.

Now if you plan to do that, the first thing you should do is get an energy audit. It's always a good recommendation to be on site with the auditor as they're walking through the house, you're able to see in real time what the options and opportunities are for retrofitting your home, what's going to get you the best bang for the buck, or maybe which ones are easier to do, and therefore you'll have a good sense of how you should set your priorities when you do go in fact undertake those renovations.

You're also at that time going to learn from your auditor what the associated rebates are, and that will obviously help you in making that decision.

But don't be concerned that you don't, you know, gather everything or learn everything there because they do provide a very useful report to you that sets out exactly how efficient your home is, but also it sets out a whole list of opportunities for you, and then�in terms of retrofits.

Now when you look at those options, they may be as simple as enhancing the air-tightness of your home. Sealing cracks. It may be adding insulation or replacing a furnace. Regardless, there are many benefits that can accrue from these various efforts. Certainly reducing operating costs, improving the indoor air quality of your home, enhancing the durability of your home, and also doing your part for the environment.

The only way that you can benefit from the available government rebates and incentives is by undertaking that energy audit. So it really needs to be a definite priority if you're planning energy efficient renovations.

Find out more at the RBC Advice Centre.

Which mortgage interest rate is best for you? Fixed, variable or a combination?

by Jennifer - Branch Manager

When it comes to mortgage interest rates, it's not always easy to know what to do. Rates are currently at, or near, historic lows - so what does that mean? Do you choose a fixed rate mortgage or variable rate mortgage? To figure it out, it's good to understand the benefits of both.

With a fixed rate, your interest rate will not increase during the term you have selected. But remember, you won't be able to take advantage of any decline in rates that may occur until the end of your fixed rate term.

A variable rate mortgage fluctuates with the prime rate. The advantage of a variable rate is that it is usually one of the lowest mortgage rates offered - meaning you may save money now and if the Prime Rate falls. Keep in mind though that, if prime rate rises then your interest rate will also rise -which could increase your interest costs over the life of your mortgage and lengthen the amortization of your mortgage.

Some good news - in most circumstances you can lock your variable rate mortgage into a fixed rate mortgage at any time within your mortgage term.

Still can't decide? Fixed? Variable?

A third option is the RBC Homeline Plan® - a home equity product which allows you to choose both fixed and variable rates. Similar to diversifying your investment portfolio, you can benefit in any interest rate environment. When interest rates are on the rise, the fixed rate portion of your plan will provide savings and stability. When interest rates are decreasing, the variable interest rate portion of your mortgage will decrease, saving you interest. And the percentage that you split between fixed and variable is up to you.

Talk with one of our mortgage specialists today to discuss the benefits of fixed, variable or how the RBC Homeline Plan can help you benefit in any interest rate environment.

Find out more at the RBC Advice Centre.

What to consider when deciding to rent or to buy a home

by Rohan - Account Manager

Purchasing a home is a big decision, and it is important to take the time to understand if you are ready to make the move from renting to buying your home. It is a personal decision and there are many factors to consider that are unique to you. Owning a home will most likely be the biggest investment in your lifetime.

The earlier you can re-direct your rent payments into a mortgage payment the faster you will start building equity in your home. Equity is the difference between the value of your home and the amount you owe on your home, and as you pay down your mortgage, or the housing market changes, your equity has the opportunity to grow.

But this doesn't mean that home ownership is the right fit for everyone. If your move is short term, or you are not sure yet of where you want to live it may be worthwhile to continue to rent. Owning a home is a long term commitment.

On our website we have a rent or buy tool that you may want to take a look at to understand what your current rent payment would equate to in a mortgage amount. For example:

If you are currently paying $1000 a month in rent, based on today's 5 year interest rate, amortizing the full amount of your mortgage over 25 years, and making a 10% down payment, this could equate to a house valued at close to $200,000.

It is important to keep in mind as a homeowner there are extra costs you need to account and budget for which may include: property taxes, property maintenance costs, utilities, and condo fees.

Weigh the pros and cons and determine when you are personally ready to make the move from renting to buying. If you are ready, or need help to determine if now is the right time for you, contact one of our RBC Mobile Mortgage Specialists to help you work through the numbers.

Find out more at the RBC Advice Centre.