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Can I Really Afford To Go Organic?

Globe & Mail, March 25, 2011

Grocery shopping with children in mind can be complicated.

It’s not just, “This looks tasty, let’s get it.” First, it’s the question of what they should eat – food groups, vitamins and all that. Then, it’s what they will eat, which for some children, can be quite a narrow range of consumables. When you add an attempt to move to an organic diet (not to mention rising food prices across the board), grocery shopping for a growing family can be a frustrating and expensive endeavour.

Organic food costs more than regular food – there’s just no getting around that. My family of four definitely felt the pinch when we decided to move to a more organic diet. To keep things affordable, we go organic for some food items, but not others. For example, in our home, milk and yoghurt are always organic, but fruits and vegetables? Sometimes. Meat – yes, bread – no. (A caveat to that: Our kids get organic meat and poultry, but we don’t. I only eat fish, and my husband Sean says he figures he already has mad cow anyway, so he generally gets whatever is on sale.)

Do you really have to buy everything organic to be sure your children are growing up healthy?

I asked Adria Vasil for advice. She’s the author of green-living bible Ecoholic Home: The Greenest, Cleanest and Most Energy-Efficient Information Under One (Canadian) Roof. Ms. Vasil agrees that buying all organic is out of most people’s budgets, so you have to pick and choose. For example, when it comes to produce, it doesn’t have to be all or nothing.

“As a general rule, if a piece of produce has skin or husks you remove before eating, like onions, avocado, corn or pineapple, it’ll be pretty low on the pesticide-contamination index, so you’re OK to buy it non-organic. There are some surprises on the low pesticide list too, like asparagus and broccoli. They’re nice to buy organic to support greener agriculture, but not as necessary for your health.”

Ms. Vasil says fruits with the highest pesticide residues are the ones with thin, delicate skins like peaches, strawberries, apples and grapes, so it’s worth spending your money on them. And the top-three pesticide-tainted veggies? Celery, spinach and bell peppers.

“For any produce you just can’t afford to buy organic, and even the organic kind, wash it all in a solution of one part vinegar to three parts water. That helps get rid of some of the surface pesticides and 98 per cent of bacteria,” said Ms. Vasil.

But there are some areas where she feels it’s important to splurge on the clean stuff.

“Always buy certified organic chicken since conventional chicken has been shown to be floating in antibiotic-resistant bacteria – aka super bugs,” she said. “Even antibiotic-free chicken has been shown to be contaminated. None of them will make you sick if you cook your chicken thoroughly, but most people get sick from cross-contaminated surfaces.”

But what’s a cash-strapped family to do? Ms. Vasil has plenty of tips for trimming your food budget while still eating clean food. Firstly, eat less meat. “North Americans eat 50 pounds more meat, chicken and fish per person per year than we did 50 years ago, so we can certainly afford to shave some meat out of our diets,” she said.

Ms. Vasil also suggests saving on produce by signing up for a share in a local organic farm. The concept is called “community supported agriculture” – customers pay a flat fee for 14 to 18 weekly vegetable shares delivered to your neighbourhood or front door.

“You can get a bountiful share from, say, Plan B Organics in Ontario or the Organic Farm in Newfoundland starting at just $16 to $25 a week, depending on who you buy from,” she said.

As well, Ms. Vasil says you can save on organic items like flour, oats, nuts and beans by frequenting the bulk store or aisle, where items are much cheaper without the packaging. And she advocates the time-honoured tradition of coupon-clipping and flyer-scouting when it comes to sniffing out bargains.

“This week I noticed organic pears and cauliflower on sale at Sobey’s for the same price as the conventional versions. And remember that lot of discount stores like No Frills carry a few organic items these days, so scout them out for good deals.”

When it comes to pricey organic meat and fish, Ms. Vasil says you can save by buying discounted food that is close to the expiry date. And if you don’t think you’ll use it by then, pop it in the freezer and thaw it when you need it. And if there’s no “30 per cent off” sticker on nearly expired food, ask the department manager about getting a discount.

As for fish, Ms. Vasil says it’s not worth shelling out for European organic farmed salmon (something we’ve done to the tune of $30 for a couple fillets). Wild west coast salmon is the safest choice, she says, but it’s still expensive unless you get it canned (a surprising tip: all canned salmon is wild!). If you want fresh fish, Ms. Vasil says farmed rainbow trout is a great eco-friendly and health-conscious alternative to salmon.

Lastly, Ms. Vasil says we can save a lot by buying less than we think we need. And if my heaping compost bin is any indication, she’s right on the money.

“North Americans throw out 30 per cent of the food that we buy because it wilts, rots or goes stale. Write up a weekly meal plan so every organic red pepper and head of spinach is accounted for – that way you’re making the most of the organics you do buy.”

Get a lock on mortgage rates

Vancouver Sun

Customers who are nearing the end of their fixed-rate term may be better off paying early exit penalties and securing a new deal

Even though there was a drop in some of this week’s fixed-rate mortgage products, some rates are expected to go up this year. Why the inconsistency between fixed and open rates? Fixed-rate mortgages follow bond yields, which have fallen recently. Variable rate mortgages reflect changes in the Bank of Canada’s prime rate, which is expected to rise.

There are ways to cushion the blow of rate hikes and make sure mortgage hikes are not a shock to your financial system.

“If the client is in a variable rate, which has the most fluctuation potential in the short term, I suggest they base their payments on a 4% fixed rate rather than making the lower payments based on today’s 2.25% variable rate,” says Gerri Vaughan, mortgage broker with Invis in Edmonton. “That way, they’re paying more towards the principal and they won’t have a payment shock when rates do start climbing.”

For clients who are already locked into a fixed rate, Ms. Vaughan says now is a good time to review their mortgage to work out if they should pay a penalty and renew early.

“It will really depend on what kind of pay-out penalty their existing lender is going to charge,” Ms. Vaughan says. “You have to look at those on a case-by-case scenario.”

Ms. Vaughan says borrowers who recently secured a low fixed-rate mortgage, and have a number of years remaining on their deal, are unlikely to benefit from an early renewal. However, customers who are nearing the end of their fixed-rate term may be better off paying early exit penalties and securing a new deal.

“Do an annual review of where things are with the mortgage. What are their plans over the next 12 months, are they planning to consolidate debt are they planning to do some renovations?” says Ernest MacDonald, a mortgage broker with Mortgage Intelligence in Halifax. “Does it make sense to renegotiate the mortgage now, to lock in low rates for the next five years, say?”

For clients considering buying a home within the next few months, the advice is get pre-approved.

“Even if they think they’re not buying for a few months most lenders will hold their rate for 120 days. If they’re locked in and rates shoot up, it protects them. If rates go down they always get the lower rate,” Mr. MacDonald says.

About 18% of respondents to a BMO Bank of Montreal survey last month said they would struggle to meet mortgage payment if rates rose. Ms. Vaughan says it is critical to be certain of your finances before contemplating homeownership.

“Be secure in your financial position and be comfortable that you’re going to have a job going forward,” Ms. Vaughan says. “The rates are good, the prices are good depending on where you are in Canada. It’s a good time to look at homeownership without overextending and being house poor; that’s no fun.”

Mr. MacDonald says having an overall financial plan is crucial.

“We’ve had pretty easy access to credit over the past 15 years. It has led to a lot of people not really knowing where all their dollars are going,” Mr. MacDonald says. “It really comes down to paying attention to where your money is going and being prepared if rates do go up.”

Bank of Canada rate to reach two per cent by year end: RBC

Mortgage Broker News, March 11, 2011

As part of its economic outlook for 2011, RBC projects that the Bank of Canada overnight rate will rise from one per cent to two per cent by year-end.

The gradual pace of rate increases combined with anchored inflation expectations will result in less upward pressure on long-term interest rates, added the Economic Outlook released by RBC Economics.

On the back of solid net exports in the final quarter of 2010, Canada’s economy finished the year on a high note recording stronger than expected gains. The biggest support for the economy came from net exports, which added a full 4.5 percentage points to the quarterly growth rate. Continued consumer spending also played a vital role in driving overall GDP, marking the fastest increase in spending since late 2007.

RBC expects real GDP to increase at 3.2 per cent in 2011, as U.S. demand for Canadian exports increases. Growth in 2012 is forecast to rise by 3.1 per cent.

The report also stated labour market conditions will remain firm in 2011and disposable income is expected to post a 4.1 per cent gain that will provide continued support to consumer spending.

“Consumers’ earlier confidence in taking on increasing amounts of debt was based on a combination of lower interest rates, a strengthening labour market and a 4.6 per cent rise in disposable income,” explained Craig Wright, senior vice-president and chief economist, RBC Wright. “An expected slowing in the housing market, rising interest rates and tightening mortgage lending standards all add up to a levelling out in consumer debt relative to income.”

At the provincial level, RBC forecasts Saskatchewan will lead the country in growth this year. Alberta is expected to return to a top three placing, closely trailing growth in Newfoundland and Labrador. Ontario and Manitoba will hover close to the national average while both Quebec and British Columbia will fall slightly below. Nova Scotia, New Brunswick and Prince Edward Island are still projected to lag behind at the lower end of the scale for 2011.

Portobello West moves into the Olympic Village

Vancouver Sun, March 9, 2011

Portobello West has undergone a dramatic face lift just in time for its spring launch. The monthly market of local artisans and designers has become a non-profit society, moved to Creekside Community Centre in the Olympic Village and hired a new coordinator from Montreal.

It will open in the new location with 75 vendors including some regulars and some new faces the last weekend in March.

Rosemary Marland Lennox will take over from founder Carlie Smith who is expecting her first child. Smith started Portobello West five years ago in the Plaza of Nations and soon moved to the Rocky Mountaineer. She modeled the business after Portobello Market in London and showcased hundreds of designers and artisans over the years.

Smith says that as a non-profit, shoppers won’t see much difference, but behind the scenes she expects the vendors to take on a bigger role in the organisation and she is pleased to work more closely with the city. The big difference is that the society will provide educational opportunities for the artisans to develop their businesses.

“That is a real weakness for a lot of the vendors,” she says. “We will give them more support to get them beyond being a hobby artist to becoming a profitable business.”

Lennox comes to Portobello West with a background in both the arts and in non profit organisations. Smith will remain on the board.

Unlike the Rocky Mountaineer, the new location is on several major bus routes and the Skytrain. It boasts a lot of natural light and will invite walk and cycle-by business because it is right on the seawall.

“The new venue is so beautiful,” says Smith. “The Rocky Mountaineer served us well, but we feel like it is time for a change.”

Portobello West’s spring launch happens March 26 and 27 at the Creekside Community Centre from 11am-5pm, admission is $2 for non-members. After this the market happens the last Sunday of every month (with two day markets in November and December). For more information please visit www.portobellowest.com.

Vancouver’s luxury home sales surge, largely due to influx of offshore money

Vancouver Sun, March 14, 2011

Mainland Chinese buyers a major factor, but European, U.S. purchasers also attracted to city

If you think Vancouver’s housing prices are overdue for a major price adjustment, tell that to the surging number of luxury home buyers.

According to MLS statistics provided by Macdonald Realty, a record 375 homes -including nearly 50 condos -sold for over $3 million in 2010, breaking the record of 209 set in 2009 and more than double the 167 sold in 2008.

Of those, 73 homes sold for over $5 million.

The sales were primarily, but not exclusively, on Vancouver’s west side, with the priciest home going for $17.5 million at 3489 Osler.

The second and third priciest homes -the second also on Osler and the third on Point Grey Road -both sold for about $11 million.

As well, Macdonald Realty says, if current patterns hold, the number of $3-million-plus homes is expected to reach 550 this year, raising the spectre that in some neighbourhoods a $3-million home may no longer be considered particularly exclusive.

In 2000, just 10 properties in Metro Vancouver sold for over $3 million, none of them condominiums.

The market for luxury homes is now “insanely hot,” with mainland Chinese buyers -who are also impacting the Richmond market in a big way -the primary purchasers, said Dan Scarrow, Macdonald Realty vice-president of corporate strategy.

“Ninety-per-cent [of the luxury home purchases] are on the west side, probably some in West Vancouver,” he said in an interview. “But it’s incredibly striking, when you think what the prices were 10 years ago.”

Scarrow said that while a $3-million house has always been categorized as “luxury,” he no longer knows if that’s the case in key West Side neighbourhoods, including Shaughnessy and Point Grey.

“We’re part of a global luxury market by the ultra-wealthy,” he said. “And from the buyers’ perspective, prices here are cheap for what you get.”

Tsur Somerville, director at the centre for urban economics and real estate, Sauder School of Business at the University of B.C., said in an interview that just because there are more homes selling for over $3 million doesn’t mean they’re not luxury homes.

“It’s pretty subjective,” he said. “But $3 million is an expensive home. And just because it’s on a small lot doesn’t mean it’s not a luxury house.

“And the fact that there’s a whole lot more [$3-million homes] than a decade ago, with the price increases, there’d better be.”

Somerville also said that China is a huge source of immigrants to B.C. and that mainland Chinese immigrants tend to be investors and entrepreneurs.

“Clearly, there’s a very targeted demand for higher-end properties that many associate with the mainland Chinese market.”

But he said there’s an absence of clear data on the specifics of those buyers, whether it’s primarily immigrants or investor money from China. As an indication of how the luxury condominium market has grown, Scarrow said that last year a total of 49 condos sold for over $3 million – including seven for over $5 million – with the top three closing in on $6 million each, the priciest at Two Harbour Green, 1139 West Cordova, in Coal Harbour, for $5.8 million and the other two at the Shangri-La in downtown Vancouver.

Scarrow said many more properties are crossing the $3-million threshold, which now buys a new or newer house in the 2,500-to 3,000-square-foot range on a smaller west side lot.

“Now, you see multiple $3-millionplus homes on every block. I’d say $5-million is now where you’re going for that luxury range.”

‘CHINA IS MORE EXPENSIVE’

Alice Zhang, who moved from Hangzhou, China, to Vancouver two years ago, now lives in one of six properties that she and her husband have purchased in Vancouver since moving here.

Zhang, who has two children, is waiting to move into a new home they’re constructing on a Shaughnessy lot that they bought for about $3.1 million. The house is expected to cost another $3 million, which Zhang believes is a good deal.

“We moved from the most beautiful city in China to Vancouver, which we consider more beautiful,” said Zhang, whose family owns hotels and a real estate development company in China.

“I think that compared to other Canadian cities, Vancouver is expensive. But, China is more expensive [than Vancouver].

“And the air is very fresh here and it’s very green. You feel like you’re in a garden.”

Scarrow cited another client who purchased a 2,600-square-foot condo in Coal Harbour for about $1,600 a square foot.

“[She and her family] has homes all around the world. In Knightsbridge, London, a flat was sold to her for $8,000 [Cdn] per square foot. Their flat in London was 3,000 square feet and they paid $24 million for it.”

She also has two homes in Hong Kong, one in Lake Tahoe, one in San Francisco, one in New York and one in Madrid, Spain, Scarrow said. “They all say their Vancouver property is their favourite home. They think it’s the best value.”

Macdonald Realty manager Matthew Lee, whose firm sold the three most expensive homes in Vancouver in 2009 and two of the five most expensive homes in 2010, believes that it’s not just mainland Chinese who are fuelling the luxury market, “but buyers from Europe and the U.S. are willing to pay these prices as well. Globally, Vancouver is still seen as a relatively good bargain.”

While the west side of Vancouver had the largest number of luxury homes sold, other areas in B.C. have also seen some very expensive sales, including the Fraser Valley’s top three sales between $5.3 million and $6.1 million, the Okanagan, from $5.4 million to $10.7 million, and Victoria, from $3.9 million to $6.8 million.

And while Vancouver has seen some very expensive homes sold over the past decade, including one for $17.5 million in 2008 and one for $17 million as far back as 2004, it’s the sheer numbers that are striking. In 2000, just 10 homes sold for over $3 million, and 78 in 2005.

TIME SENSITIVE – Are you ready for the changes?

There are 3 significant changes happening in the mortgage industry this month.
But don’t worry, we are here to guide you ahead smoothly.

Changes happen March 18, 2011 –  Act Now!
Maximum Amortization for high-ratio loans has been reduced from 35 to 30  years.   Your monthly payment will increase  –  hence reducing your buying power. The example below shows how this could mean a $50,000 reduction in buying power:

Interest Rate : 4.04
Amortization 35 Yr
Mortgage Amount $600000
Monthly Payment  2,658.96

Interest Rate : 4.04
Amortization 30 Yr
Mortgage Amount $600000
Monthly Payment  2,866.71

Changes happen March 18, 2011 –  Act Now!
Maximum Loan to Value (LTV)  for refinances has been reduced from 90%
from 85%.   This means your Maximum Mortgage could be reduced.The example below shows how this could mean a $25,000 reduction in buying power:
Example 2

Refinances at 90%
Home Value of 500000
Maximum mortgage amount $450000
* plus high ratio insurance premium

Refinances at 85%
Home Value of 500000
Maximum mortgage amount $425000
* plus high ratio insurance premium

April 18, 2011
Elimination of government backing of insurance for Home Equity Lines of Credit.

Click here for more information.

Housing sales “will gain traction” in 2011

REW Week of Feb 25 – Mar 3, 2011

Canadian housing sales will gain traction in the second half of this year, according to the Canadian Real Estate Association (CREA), which has released a more bullish outlook on the market than its earlier forecast at the end of 2010. CREA now estimates there will be 439,900 existing homes sold in 2011, down 1.6 per cent from 2010, but better than the 9 per cent decline that CREA had forecast in December. The association is also taking a more positive view of pricing, with the national average price now expected to rise by 1.3 per cent in 2011 to $343,300. CREA had earlier predicted that the national average home price in 2011 would fall by 1.3 per cent from last year to $326,000. Meanwhile, Canada Mortgage and Housing Corp. reports that the pace of new-home construction in Canada increased slightly last month, rising to 170,400 units, up from 169,000 in December on a seasonally adjusted annual rate. That puts the country on a pace for about 10 per cent fewer housing starts than last year. Krishen Rangasamy, an economist at CIBC World Markets said housing starts will likely soften over the coming months as home prices moderate and the Bank of Canada resumes its tightening cycle by mid-year. Some economists have warned that a combination of higher interest rates and new mortgage rules that go into effect March 18 could put a chill on demand in the later months of this year. CREA, however, predicts that the market will gain traction in the second half of 2011 as economic conditions, job and income growth and consumer confidence improve, in contrast to 2010 when economic growth slowed.

Rising mortgage rates may fire market

Fraser Valley realtors say the recent hike in mortgage rates may fire up the housing market as buyers try to get in before rates rise higher and new mortgage rules kick in next month. Major banks, led by TD Canada Trust and CIBC, have raised some of their fixed-term mortgage rates by as much as a quarter of a percentage. This means the TD five-year fixed rate mortgage, a popular choice among buyers, increased by a quarter of a percentage point to 5.44 per cent. CIBC hiked its mortgage rates similarly, increasing its five-year closed mortgage by 0.25 percentage points to 5.44 per cent. The hikes come one month after the federal government announced changes to lending rules, made in an effort to control skyrocketing household debt levels in Canada. Finance minister Jim Flaherty reduced amortization periods to 30 years from 35. He cut the amount of mortgage refinancing to 85 per cent from 90 per cent of home value. He also announced the federal government would no longer back home equity lines of credit.

Majority of Canadians still confident they can service mortgage payments: BMO

Friday, 25 February 2011

Two in three Canadian homeowners believe they will still be able to service their mortgage payments if interest rates go up, according to a survey by Bank of Montreal (BMO) Financial Group.

While some were unsure, another 18% of Canadians said they would not be able to afford higher payments, although the survey didn’t ask how high the payment would have to be to become unaffordable.

“Despite high prices, housing remains reasonably affordable due to record low interest rates,” said Sal Guatieri of BMO Economics. “That said, Canadians should prepare for interest rates to eventually return to historic norms.”

BMO has forecase that the Bank of Canada will raise interest rates by one percentage point before the end of the year. But such an increase would not put undue stress on the housing market, the report said.

A typical Canadian homebuyer uses a third of total household income to service their mortgage, said the BMO report. But that’s not off from historic norms.

Top 25 grants and rebates for property buyers and owners

Vancouver Sun February 25, 2011

1 HOME BUYERS’ PLAN

Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time. For more information: www.cra.gc.ca. Enter ‘Home Buyers’ Plan’ in the search box.

2 GST REBATE ON NEW HOMES

New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000. For more information: Canada Revenue Agency www.cra-arc.gc.ca. Enter ‘RC4028’ in the search box.

3 BC NEW HOUSING REBATE (HST)

Buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250. For more information: www.hstinbc.ca/making_your_choice/ faqs/new_housing_rebate/

4 BC NEW RENTAL HOUSING REBATE (HST)

Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit. www.hstinbc.ca/making_your_choice/ faqs/new_housing_rebate/

5 BC PROPERTY TRANSFER TAX (PTT) FIRST TIME HOME BUYERS’ PROGRAM

Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000. For more information: www.rev.gov. bc.ca/rpt

6 FIRST-TIME HOME BUYERS’ TAX CREDIT (HBTC)

This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2010) x $5,000. For the 2010 tax year, the maximum credit is $750. For more information: www.cra.gc.ca/hbtc

7 BC HOME OWNER GRANT

Reduces school property taxes by up to $570 on properties with an assessed value up to $1,150,000. For 2011, the basic grant is reduced by $5 for each $1,000 of value over $1,150,000, and eliminated on homes assessed at $1,264,000. An additional grant reduces property tax by a further $275 for a total of $845 for seniors, veterans and the disabled. This is reduced by $5 for each $1,000 of assessed value over $1,150,000 and eliminated on homes assessed at $1,319,000+. For more information: www.rev.gov.bc.ca

8 BC PROPERTY TAX DEFERMENT PROGRAMS

Property Tax Deferment Program for Seniors. Qualifying home owners aged 55+ may be eligible to defer property taxes. Financial Hardship Property Tax Deferment Program. Qualifying low-income home owners may be eligible to defer property taxes. Property Tax Deferment Program for Families with Children. Qualifying low income home owners who financially support children under age 18 may be eligible to defer property taxes. For more information: www.sbr.gov.bc.ca and enter ‘Property tax deferment’ in the search box or contact your municipal tax office.

9 CANADA MORTGAGE AND HOUSING (CMHC) RESIDENTIAL REHABILITATION ASSISTANCE PROGRAM (RRAP) GRANTS.

This federal program provides financial aid to qualifying low-income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and owners creating secondary and garden suites. For more information: www.cmhc-schl.gc.ca/en/co/prfinas/ prfinas_001.cfm

10 CMHC MORTGAGE LOAN INSURANCE PREMIUM REFUND

Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient mortgage or make energy saving renovations. For more information: www.cmhc.ca/en/co/ moloin/moloin_008.cfm#reno

11 ENERGY SAVING MORTGAGES

Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy SaverT Mortgage, may qualify for a rebate of $300 to their RBC account. For more information: www.rbcroyalbank.com/products/mortgages/energy-saver-mortgage.html

12 LOW INTEREST RENOVATION LOANS

Financial institutions offer ‘green’ loans for home owners making energy efficient upgrades. Vancity’s Bright Ideas personal loan offers home owners up to $20,000 at prime + 1% for up to 10 years for ‘green’ renovations. RBC’s Energy Saver loan offers 1% off the interest rate for a fixed rate installment loan over $5,000 or a $100 renovation on a home energy audit on a fixed rate installment loan over $5,000. For information visit your financial institution or go to : www.vancity.com/Loans/BrightIdeas/ or www.rbcroyalbank.com/ and in the search box enter ‘energy saver loan’.

13 LIVESMART BC: EFFICIENCY INCENTIVE PROGRAM

Home owners improving the energy efficiency of their homes may qualify for cash incentives through this provincial program provided in partnership with Terasen Gas, BC Hydro, and FortisBC. Rebates are for energy efficient products which replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation, windows, doors, skylights and more. The LiveSmart BC program also covers $150 of the cost of a home energy assessment, directly to the service provider. For more information: www.livesmartbc.ca/rebates

14 BC RESIDENTIAL ENERGY CREDIT

Home owners and residential landlords buying heating fuel receive a BC government point-of-sale rebate on utility bills equal to the provincial component of the HST. For more information: www.sbr.gov.bc.ca/documents_library/notices/HST_ Notice_010.pdf

15 BC HYDRO APPLIANCE REBATES

Mail-in rebates of $25 – $50 for purchasers of ENERGY STAR clothes washers, refrigerators, dishwashers, or freezers until March 31, 2011, or when funding for the program is exhausted. For more information: www.bchydro.com/rebates_savings/appliance_rebates.html

16 BC HYDRO FRIDGE BUY-BACK PROGRAM

This ongoing program rebates BC Hydro customers $30 to turn in spare fridges in working condition. For more information: www.bchydro.com/rebates_savings/ fridge_buy_back.html

17 BC HYDRO WINDOWS REBATE PROGRAM

Pay no HST when you buy ENERGY STAR high-performance windows and doors. This offer is available until March 31, 2011. For more information: www.bchydro.com/rebates_savings/windows_offers/ current_offers.html

18 BC HYDRO MAIL-IN REBATES/ SAVINGS COUPONS

To save energy, BC Hydro offers rebates including 10% off an ENERGY STAR cordless phone. Check for new offers and for deadlines. For more information: www.bchydro.com/rebates_savings/coupons. html

19 TERASEN GAS REBATE PROGRAM

A range of rebates for home owners include a $50 rebate for upgrading a water heater, $150 rebate on an Ener-Choice fireplace (both good to March 31, 2011) and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system (good to Feb. 29, 2012). For more information: www.terasengas.com and in the search box enter ‘rebates’.

20 TERASEN GAS EFFICIENT BOILER PROGRAM

For commercial buildings, provides a cash rebate of up to 75% of the purchase price of an energy efficient boiler, for new construction or retrofits. For more information: www.terasengas.com and in the search box enter ‘gas efficient boiler program’.

21 CITY OF VANCOUVER SOLAR HOMES PILOT

This rebate of $3,000 (about 50% of the cost) is for a Vancouver home owner upgrading to a solar hot water system from a gas system. Offered by the City of Vancouver, SolarBC, Terasen Gas and Offsetters on a first come, first served basis to March 2011 until the City reaches its target of 30 solar homes. For more information: www.vancouver.ca/sustainability/SolarHomes.htm

22 CITY OF VANCOUVER RAIN BARREL SUBSIDY PROGRAM

The City of Vancouver provides a subsidy of 50% of the cost of a rain barrel for Vancouver residents. With the subsidy, the rain barrel costs $75. Buy your rain barrel at the Transfer Station at 377 W. North Kent Ave., Vancouver, BC. Limit of two per resident. Bring proof of residency. For more information: www.vancouver.ca and in the search box enter ‘rain barrel program.’ Other municipalities have similar offers.

23 VANCITY GREEN BUILDING GRANT

In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for projects which focus on building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies. For more information: www.vancity.com

24 LOCAL GOVERNMENT WATER CONSERVATION INCENTIVES

Your municipality may provide grants and incentives to residents to help save water. For example, the City of Coquitlam offers residents a $100 rebate and the City of North Vancouver, District of North Vancouver, and District of West Vancouver offer a $50 rebate when residents install a low-flush toilet. Visit your municipality’s website and enter ‘toilet rebate’ to see if there is a program.

25 LOCAL GOVERNMENT WATER METER PROGRAMS

Your municipality may provide a program for voluntary water metering, so that you pay only for the amount of water that you use. Delta, Richmond and Surrey have programs and other municipalities may soon follow. Visit your municipality’s website and enter ‘water meter’ to find out if there is a program.

Origin Goes Mobile

As the UK rock band chicagobearsjerseyspop “The Who” once professed in one of their Top hit songs….we’re going mobile!

We have just launched a mobile website for our client and referral partners to LONG-TERM quickly access rates, calculators and news updates from their mobile phone and it is properly formatted to enhance your By viewing experience. Check it out at http://m.origingroup.ca and bookmark it for future mobile reference.

Watch for our Steelers Mortgage Advisors to get on the mobile band wagon in short order with personalized mobile You sites for you to d’Allaiton access and preview for prospective clients.

Metro Vancouver, rest of B.C. show sharp differences in housing price changes

The Vancouver Sun,  February 14, 2011

B.C.’s real estate market appears to be morphing into two categories: Metro Vancouver and the rest of the province.

While Metro Vancouver saw a strong increase in the average home price over the past year – up 19.6 per cent in January compared to January 2010, from $638,000 to $763,000 — that’s not the case for most other regions of B.C., according to a survey released Monday by the B.C. Real Estate Association, which represents 11 real estate board across the province and 18,000 realtors.

Except for Metro Vancouver, the Fraser Valley and – for this month, at least – the Kootenays, the province has seen average prices fall, in some cases substantially, in every region in January compared to the same month last year.

“There’s certainly a divergence in the market [between] the south coast and the rest of the province,” BCREA chief economist Cameron Muir said in an interview Monday. “There’s very strong market activity in parts of Vancouver. And that’s skewing the average price higher.”

Despite the difference between Metro Vancouver and the rest of the province, Muir said the numbers can be misleading because the huge increase in Metro Vancouver’s average price was largely because of a surge in purchases of luxury, executive homes in Richmond and the west side of Vancouver.

He said the “benchmark” price — the price of a typical home in Vancouver — actually rose just a bit more than two per cent over the year. He did not have information on benchmark prices for elsewhere in the province.

According to the BCREA survey, the average price of a home in B.C. rose 11.5 per cent, to $548,183, in January compared to January, 2010.

The BCREA also said that Multiple Listing Service sales climbed seven per cent in January from December 2010, on a seasonally adjusted basis.

Compared to January of last year, home sales were down 10 per cent, to 4,137 units.

The survey noted that the inventory of homes for sale remained below 47,000 units for the third consecutive month in January, down 14 per cent from the spring of last year.

While the south Okanagan saw prices drop 8.9 per cent, from $310,000 to $283,000, the Okanagan Mainline (from Kelowna north) saw prices drop 2.9 per cent, from $387,000 to $376,000.

Vancouver Island prices dropped 5.7 per cent, from $328,000 to $309,000, while Victoria prices fell 4.5 per cent, from $510,000 to $486,000.

B.C. Northern prices fell 4.6 per cent, from $215,000 to $205,000, Chilliwack dropped five per cent, from $289,000 to $275,000, and Kamloops prices dropped 1.5 per cent from $314,000 to $309,000.

Powell River saw the steepest drop in the province, 29.6 per cent, from $301,000 to $212,000, while Kootenay bucked the trend in January with a 4.7-per-cent increase, from $264,000 to $276,000.

Muir said Vancouver is doing better because its economy is more diversified that the rest of B.C. and also has the advantage of significantly more immigrants, many of whom are in the investor class and typically buy a house upon arrival.

Muir noted that the Okanagan is in buyers’ market conditions, with 22 months of housing supply, meaning that it would normally take 22 months to use up the existing inventory.

“In Vancouver, it’s 6.1 months of supply. A balanced market is typically five to seven months.”

As well, he noted, one of the Okanagan’s main source of buyers – Alberta investors – has dried Sports up, with many looking south of the border for cheaper recreational properties.

Carol Frketich, B.C. regional economist for Canada Mortgage and Housing Corp., said in an interview that while a one-month snapshot doesn’t tell the whole story, Metro Vancouver has generally done better than the rest of the province.

“And Vancouver’s employment has been stronger than the provincial average. That provides a solid basis for the housing demand.”

Frketich noted that housing starts in the Vancouver CMA (census metropolitan area) saw a 57-per-cent hike in January to 1,436 from 917 in January 2010, with the Abbotsford and Kamloops CMAs also saw increases.

On average, urban centres saw a 15-per-cent rise over that period, although Frketich cautioned that one month doesn’t indicate a trend.

Meanwhile, Muir said he expects home sales to moderate this year as higher interest rates push mortgages up, impacting affordability.

He said there should be a “moderate improvement” in interior home prices in 2011.

Bump RRSP limits from 18% of earned income to 34%, CD Howe tells Feds

The National Post, February 11,  2011

Now here’s something those whose RRSPs were shattered by the 2008 crash should welcome: raising RRSP contribution limits from 18% of earned income to 34% of earned income, and raising the maximum dollar amount proportionally, from $22,000 to $42,000.

That’s the eminently sensible suggestion from C. D. Lyndo Howe Institute president and CEO William Robson.  In a backgrounder containing suggestions for the 2010 federal budget, Robson says Ottawa should provide more tax deferral room for both RRSP savers and members of  employer-sponsored Defined Contribution pension plans. “Using the federal Public Service Plan as a benchmark suggests raising the contribution limit from 18% to 34% of earned income” as well as almost doubling the current $22,000 maximum to $42,000.

Extend RRSP life to age 73 from 71

The paper,  entitled Cutting Through Pension Complexity: Easy Steps Forward for the 2010 Federal Budget, also recommends raising the age at which people lose access to tax-deferred saving and must start withdrawing funds:  from age 71 to 73. Robson also suggests giving holders of Registered Retirement Income Funds (RRIFs) and Life Income Funds the same spousal income-splitting opportunities as recipients of annuities from pension plans. The government should also make the pension credit available to those drawing income from RRIFs or LIFs “regardless of age, as it is to recipients of annuities from pension plans.”

Further changes to the Income Tax Act would make retirement-related services more readily available to employees of small organizations and to the self-employed, Robson suggests.

Redress Pension Adjustment inequity between DB plans and DC/RRSPs.

The big suggestion is to bring RRSPs and DC plans to closer parity with the traditional Defined Benefit pensions which are enjoyed primarily by politicians and government workers and — less and less, unfortunately — some in the private sector.  As things stand, savers in DC/RRSPs “get less generous tax deferral than do most DB participants,” Robson writes. That’s because the Income Tax Act uses a “Pension Adjustment” [the PA shown on T-4s] to estimate how much saving people without DB plans need to undertake in order to accumulate the same amount of wealth as those with DB plans.

However, the Pension Adjustment “assumes relatively high returns and overlooks important provisions often found in public-sector plans” and so “tends to underestimate the required amounts of saving.” As a result, annual contribution limits for DC plan members and RRSP owners are set relatively low.

Similarly, larger contributions for past service are possible in DB plans than in DC plans and RRSPs. When DB plan assets fall short of liabilities, the tax act lets employers rebuild the plans with no limits, a practice encouraged by regulators and which many companies implemented after the crash. But as millions of Canadians hurt by the 2008 meltdown know, when values fall in DC plans and RRSPs, annual contributions limits “make no accommodation,” Robson says.

Ultimately, lifetime savings limit would help investors recover from 2008 crash

Therefore, the “first step” is to boost tax deferral room for RRSP and DC savers.  Ultimately, a lifetime pension saving limit would help those individuals recover from setbacks but the first step would be the recommendations made in the report.

The report makes no mention of the Tax Free Savings Accounts (TFSAs), which were long ago another CD Howe Recommendation when they were called Tax Prepaid Savings Plan. Nor does the report mention the suggestion of actuary Malcolm Hamilton that TFSA contribution room be samachar made retroactive to age 18 — or a similar lifetime TFSA contribution amount be implemented — in order to similarly help those whose RRSPs and DC plans were hurt by the crash.