New Year's resolutions for homeowners
By the time we pack up the holiday decorations, we’re getting into the New Year’s groove: that fresh-slate feeling we all get this time of year. Harness that energy: make this the year to whip your house – and your household finances – into shape.
Keeping a home running in tip-top shape is like keeping a car in fine running order. It’s best not to wait for the tires to wear through, the brakes to screech or the muffler to fall off. We maintain our vehicles on a regular schedule and they reward us with good service. Your house needs the same treatment. Develop and implement an annual maintenance plan for your home; regular attention will help to avoid larger, more expensive repairs later.
Back when independent mortgage brokers started gaining market share in the 1970’s, they focused primarily on securing low rates and dealing with bad credit situations. Over time, though, they took on the role of consultant: finding the best mortgage rate while educating their clients on strategies to become mortgage-free faster. Today, we’re beginning to see a breakaway group of top brokers who are going one step further on the advice spectrum. They’re known as mortgage planners - they help clients incorporate their mortgage into their overall financial plan.
1. Get to know your plumbing. Take an exploratory stroll around your home and get acquainted with your plumbing. Look for slow drains or dripping faucets. Do you have any pipes that go through an unheated or an unfinished room? Make sure they’re well insulated. Going away for a few weeks this winter? Don’t let your house temperature drop too low; pipes will get a lot colder than the inside walls.
2. Be alarmed. That is, make use of smoke detectors, fire alarms, and carbon monoxide detectors to protect your family and your home. Then do what you can to ensure you never need them. Check your electrical system for worn or exposed wires. Check your heating system and appliances for gas leaks or cracks and for adequate ventilation. Have your furnace, boilers or heating stoves serviced each year. Clean vents, baseboard heaters and cold-air returns.
3. Keep the heat in. Take a walk around the inside of your house and check for drafts. Think you feel a little chill? Light a candle and move it around to check for the entry point of any breezes. Keep in mind that cable entry points and electrical outlets are often sources of cold air. While you’re down at floor level, check for breezes coming from under the baseboards. The objective is to tighten up your home: repair, replace or install any weather stripping and caulking around windows and doors. If you’ve got cold walls, cold floors, or very uneven heating in the house, you probably have an insulation problem. You may want to check out the Office of Energy Efficiency website at http://www.oee.nrcan.gc.ca.
4. Do an outside home inspection. Walk around the exterior of your home. Twice. The first time, look up. Inspect your roof for damaged or loose shingles, gaps in the flashing, or any other potential trouble spots. Check your chimney for damaged mortar, and inspect the walls. At least twice a year, clean out the eavestrough and check any downspouts. The second walk around the house, look down. Watch for any water pooling near the house’s foundation. And check your walkways, steps and handrails to ensure they’re safe and well-maintained.
5. Get your home finances in order. Your mortgage should be the centerpiece of your financial strategy.
A mortgage planner can offer you an assessment on how you could save thousands of dollars on your mortgage – or how you might tap into your equity to pay off other debts, or maybe to access cash for that renovation or landscaping project you’re planning. If you’re refinancing, be sure you also think ahead to any tax liabilities. Now’s the time to take these things into consideration; interest rates are still at near-historic lows.
Whip your house into shape this year. You’ll live better, you’ll prevent costly problems down the road, and you’ll be building a more secure financial future. That’s a New Year’s resolution with some big rewards.
