Toronto Condo and Real Estate Blog

To qualify, a home must exceed national energy efficiency standards

Kathryn Young, CanWest News Service

Kosta Hatzidimitriou was surprised, then pleased when he stumbled upon a green mortgage for his recent purchase of a three-bedroom single-family home.

“The wife and I are trying to get more environmentally conscious and energy efficient,” he said. “Personally, I think it’s about time the banks got involved [in enviro-friendly products] because everybody else is.”

His new Citizens Bank of Canada mortgage included a $10,000 line of credit at prime for energy-efficient upgrades. and a blue recycling bin filled with $875 worth of information and coupons, including a $375 home energy audit to help determine what improvements can be made to his 18-year-old Toronto-area home.

“It’s interesting to find out a bank is doing this instead of some government agency,” Hatzidimitriou said. “I like that.”

Banks and credit unions are starting to offer what they call “green mortgages” and “green loans” for energy-efficient improvements, and plan to roll out more products in the coming months.

Vancity Credit Union (which wholly owns Citizens Bank) has been involved for many years in financing green and sustainable commercial properties, and now offers a climate change mortgage. Vancity doesn’t advertise this mortgage; instead it takes the money usually spent acquiring mortgage business — $1,250 per mortgage — and invests it in a climate change fund.

Citizens Bank began offering green mortgages last April in Ontario and will expand them to other provinces by next spring, said John Filice, director of residential mortgages.

Even some of the bigger banks are examining green possibilities.

“We are very seriously looking at this,” said Kelly Hechler, spokeswoman for TD Canada Trust. “We know there’s interest out there. We’ve seen it in polls we’ve done of homeowners who say it’s becoming an important thing to them.”

Although they’re a first step toward making Canadian homes more energy efficient, these financial deals don’t always meet the more strict definition of a green mortgage or green loan that government and green building promoters would like to see.

Gordon Shields, co-ordinator of the Net-Zero Energy Home Coalition, said a green mortgage usually refers to preferential interest rates for a mortgage on a home that’s measurably more energy efficient than one built to the provincial or national building code, such as R-2000, Energy Star, Built Green, Power Smart or Novoclimat homes. The homes are labelled and the energy efficiency measured, and tying the mortgage to that measurement is important.

“That would be a key component,” said Shields. “We would want to see a green mortgage premised on exceeding the national building code standard or national average.”

Steffan Jones, manager of home ownership policy for the insurance sector at Canada Mortgage and Housing Corp., also said he doesn’t consider them true green mortgages.

“A lot of this is marketing,” Jones said. “But there is a benefit. If they’re encouraging people to get energy audits and at least think about it and perhaps know what kinds of improvements they can make, that’s the benefit that can’t be quantified.”

Since 2003, CMHC has offered an incentive for homebuyers who need mortgage insurance to buy certified energy-efficient homes or to buy existing homes and make them more efficient: they can receive a 10% refund on their mortgage loan insurance premium and extended amortization periods of up to 40 years without any surcharges. All homes must be either certified under one of the energy-efficiency programs or have energy audits to prove their energy-efficiency rating.

“Anything that makes things more energy efficient, there’s nothing wrong with that,” said Shields, whose group promotes net-zero-energy homes that produce as much energy (solar, wind or geothermal) as they use in a year.

True green mortgages and loans would help Canada’s housing supply become more energy efficient much faster, Shields said. Buildings produce about 40% of Canada’s greenhouse gas emissions, according to the Canada Green Building Council.

Meanwhile, it’s been a learning experience for Hatzidimitriou as he goes through his blue box of coupons and information.

“It’s definitely made me revamp my plan for the future,” he said, adding that he’ll now put money into energy-efficient changes rather than landscaping, ceramic floors or granite counters.

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See what’s new at the exclusive townhome community of Watermark Lofts

From New Homes & Condos Magazine

It’s not often that a community like this comes along, so when it does, it draws a lot of attention. Georgian Homes has designed a unique and exclusive development of heritage-inspired freehold townhomes. Welcome to Watermark Lofts, where Georgian is offering some of the finest in upscale urban living. Having just released this community, comprised of only 36 luxury freehold townhomes at the beginning of February, the opportunity to enjoy this lofty urban lifestyle won’t last for long.

Perfectly situated between the shimmering waters of Lake Ontario and the bustle and cultural diversity of the Danforth, Watermark Lofts is set to become a definitive Upper Beach address.

Here you will find a vision that blends seamlessly with your own, accommodating even the most subtle nuances of your active downtown professional lifestyle, while simultaneously providing ample space to rest, relax and restore. It is a vision that blends the beauty, relaxation and invigorating elements of active outdoor living with the incredible convenience of urban location. And it’s a vision with which you can grow, ideally suited to meet your needs now and in the future.

When you purchase a home here you’ll start home ownership knowing that you can expect superb quality, craftsmanship and customer service. For more than 30 years, Georgian Homes has been building residential homes, striving for the highest possible standards, earning both industry accolades and the repeat business of satisfied customers. Their reputation is built on a firm foundation of craftsmanship coupled with the latest building technologies. With attention to every detail, Georgian Homes consistently delivers homes that surpass the expectations of even the most discerning homebuyer, while meeting the needs and desires of today’s busy urban lifestyles.

A rich sense of heritage

While true or ‘hard’ loft construction typically involves the conversion of a vintage factory or warehouse, Watermark Lofts is a new, or ’soft’ loft construction. This ensures that only the latest construction materials and methodologies will be used to create your new home, and also makes it eligible for the Tarion Warranty (formerly the Ontario New Home Warranty Program). Hard lofts are currently not covered under this program.

Watermark Lofts, however, is a community not without a deep and abiding sense of heritage. Located on Gerrard Street, east of Main in the Upper Beach area, Watermark Lofts stands on the site of the Lake Simcoe Ice Company office building, a heritage building and integral part of the Toronto community in the 20th century. Elements of the Edwardian Classicism from the Lake Simcoe building will be integrated into the loft designs by rebuilding the original facade into a grand archway which will serve as the entrance to the community, preserving the unique characteristics that make this project one of a kind.

When you live your life at Watermark Lofts you will have easy and convenient access to the many festivals, activities and outdoor pursuits that make the Beaches famous. Enjoy a stroll along the boardwalk, take in a game of beach volleyball, or barbecue with family and friends. The location also puts you minutes from the Danforth GO Train, Main Street subway line and the Ted Reeves Arena. The Martin Goodman trail is within easy reach, affording endless opportunities for active outdoor pursuits. This pristine and beautifully maintained trail is the perfect way to enjoy the natural beauty of the Lake Ontario shoreline, and take in the sights along the way.

With easy access to premier sports and sailing clubs, expansive sandy beach areas, and an abundance of permanently protected parks and greenspace, the Upper Beach has understandably become one of the most exciting and desirable locations in the city.

Townhomes are designed so that residents can take advantage of the fabulous lifestyle this community offers. The three-bedroom, 2.5-bathroom designs are spacious, with living area spread over four floors, plus a roof-top deck. Your private garage has a direct entrance to your home. The first floor offers a laundry, furnished with a stackable washer and dryer, a closet and powder room.

Up one flight, the main floor offers a large Great Room, ideal for entertaining, watching your home theatre , enjoying family time or downtime. The 10-ft. ceilings add to the spaciousness of the home. You have the option of natural pre-finished maple or oak flooring or ceramics on the main floor.

The kitchen is also on the main floor, bordered on the Great Room by a stylish and useful raised breakfast bar done in granite. These chic kitchens come furnished with a black microwave with integrated hood fan over the range, an 18-cubic-ft. black fridge, a 30-inch self-cleaning black range and a matching black dishwasher. Appliances are a perfect complement to the custom cabinetry. There’s also a French door leading out to the garden patio so it’s easy to step out for some sunshine or to access your grill.

The third floor features two generous bedrooms and a full bath. The loft, with a fabulous nine-ft. ceiling, takes up the entire fourth floor. This master suite retreat is huge and offers all the indulgences. A huge walk-in closet will easily accommodates your wardrobe needs, while the spa-like bathroom, complete with soaker tub, will truly pamper.

The rooftop deck is your own private outdoor retreat, a great place for enjoying alone with a good book, as a perfect spot for a romantic evening or a great place to enjoy with friends. For the utmost in convenience, there is a powder room or wet bar at the entrance from the rooftop deck.

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Most people want to own a home. But with legislation restricting the places where people can build, how will that affect consumers?

Real estate researchers, builders and developers at the Land and Development Conference in June looked at real estate trends you should know about.

Legislation has changed the legal framework of housing development, from the Greenbelt Act, where areas of land development are frozen, to the Places to Grow Act imposing boundaries. And the new City of Toronto Act would allow the municipality a range of powers, such as adding to the land transfer taxes as a way of getting revenue for the city. “All those things together either reduce the amount of land or make it more complicated to get an approval,” said Cynthia MacDougall, McCarthy Tetrault.

High-rises going up

In the first quarter this year activity in the residential condo market accounted for 50% of all new housing development in the greater golden horseshoe. “That has never happened in our history,” said Andrew Brethour, PMA Brethour. “This is the strongest condo market that we have ever seen.”

Brethour referenced a Greater Toronto Homebuilders’ Association survey showing that condos are not necessarily where consumers want to be, but where they can afford to be. What does a consumer want? Sixty-five per cent prefer a detached home in the suburbs, 80% believe the GTA is already too crowded and 79% say they will either stay put or move further out if housing prices rise substantially. They’ll jump the green belt.

“My biggest concern is the high level of investor involvement in the condo market,” said Brethour. Investors might pull out of the market quickly if it begins to soften, he said, which will lead to an adjustment or correction happening in the beginning of 2008.

Shelley Libfield, Conservatory Group, echoed Brethour concern over housing choice. “I think people who have families want to have a backyard. That is the culture that we have. By establishing the green belt and reducing the supply side, we are ultimately changing the way that people are being forced to live. It is not that they want to live in these high rise condos. They have no choice, in my opinion.”

Libfield said that the restriction on the supply side is making land very expensive. “January to April in the low rise side of the equation, were our worst months in five years,” he said. Buying a house, he said, “is showing signs of hitting up against the affordability wall.”

Low density land acquisition activity has been on the decline in the 905 in the past three years in particular, said Liz Sawicki, Firm Capital, since the legislation changes. Investments in low rise are expected to continue to drop, she said.

Sawicki highlighted allocation restraints in communities that have been designated as growth centres as a particular challenge. “Kitchener is an example of a growth centre that is not a growth centre. They are rationing out their greenfield sites, and trying to push development on their brownfield sites.” The developer then has all the considerations with remediation, which are extensive.

Less is more

People are shrinking the space they are living in, not just in high rise condos, but also in low rise homes, and so builders and real estate agents have had to convince buyers that less is more. This trend will continue, the panel agreed.

The “artificial reduction of supply” has come about because of legislation and infrastructure challenges now often passed on to developers from the municipalities, the panel agreed. The question then, says Brethour, is “Where will our children live and work when they are playing in the green field?”

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