17 Feb Why Your New Home Will Cost Lower Utilities
Whether you’re searching high and low for new homes in Alliston or elsewhere, you’re no doubt wondering if it’ll save you any money compared to a used one. It’s surprising just how much modern engineering can benefit your wallet and make those utility bills a lot less scary to look at.
Full of Hot Air
Living in a country with extreme seasons means we use a lot of energy to power our homes. How much is used doesn’t depend on the weather as much as it depends on the home itself. It’s important to know that whether you realize it or not, your home is leaking air.
Don’t panic; this isn’t as bad as it sounds! You won’t feel it anywhere besides your bank account. You see, because your home is cooled or heated (depending on the season), escaping air results in losing energy and heat.
Newer homes don’t really have this problem. To illustrate the point, the Canadian Home Builder’s Association ran simulations and studied old homes. If all the cracks and spaces in a typical mid-70s home were to be brought together, you’d have a hole 21 inches wide!
In homes made to the latest Ontario building code, that home would shrink by over two-thirds. That means less money seeping out of your home.
Stepping on the Gas
Homes heated by natural gas can be costly due to a lot of the structural inefficiencies in older homes. Homes didn’t become energy efficient on their own; homeowners fed up with pricey energy bills drove a lot of the changes.
It shows, too. The CHBA’s analysis showed that the same home we talked about built in the mid-70s consumed 7948 m3. In an identical house built to 2012 standards, gas consumption was about 1695 m3. Based on average gas rates the change in gas consumption equals over $1300.00 saved a year!
Being Efficient with Your Wallet
Energy efficient homes aren’t just creating a stir with homeowners either. With 17% of the energy in Canada being used in homes the government and lenders have taken notice.
The Canadian Mortgage and Housing Corporation is one such group, making it easy for homeowners to finance their home. The CMHC’s mortgage loan insurance allows a minimum down payment of 5% on home purchases and it’s all tied in to how energy efficient your home is.
Additionally, if you’re using CMHC insured financing to purchase a new, energy efficient home, a 10% refund on the insurance premium and longer amortization are possibilities if the home meets the requirements.
At the end of the day, new homes in Alliston or elsewhere can and will save you money, especially when it comes to utilities. While arguments can be made for saving money by buying a used home, the cost of renovations, inspections and maintenance make going for something that’s built to the latest code and energy efficient the more logical choice.