NEWS, STATISTICS & MARKET UPDATES
Nearly half of existing mortgages face renewal in 2018: CIBC report
The Canadian Press
Nearly half of all existing mortgages in Canada will need to be renewed this year, substantially more than in prior years, according to a new report, amid rising interest rates and new rules that make it tougher for some borrowers to shop around.
A CIBC Capital Markets report suggests an estimated 47 per cent of all existing mortgages will need to be refinanced in 2018, up from the 25 to 35 per cent range in a typical year.
The increase is an unintended consequence of various rounds of regulatory changes in the past few years aimed at reducing risk coupled with rising house prices that made it harder for homebuyers to qualify, said Ian Pollick, CIBC’s executive director and head of North American Rates Strategy in a report released Tuesday.
“Over the past two to three years, as home prices have risen unchecked, you’ve had people trying to get into the housing market unable to afford longer term mortgages and taken out short-term mortgages,” he said in an interview. “And in 2018, everything is falling on top of one another.”
The increase in renewals comes as mortgage rates have been rising.
Recent Bank of Canada interest rate hikes have pushed up variable rate mortgage rates, while five-year fixed rates up about half a percentage point compared with a year ago as yields on the bond market, where the big banks raise money, have been on the rise since late last year due to an improved economic outlook.
Meanwhile, new lending guidelines introduced this year stipulate that homeowners looking to renew their uninsured mortgages are subject to a new stress test, unless they stick with their existing provider, hobbling their ability to seek out a more competitive rate.
Under the tighter lending guidelines, known as B20, homebuyers seeking a loan from a federally regulated lender must prove they can service their uninsured mortgage at a qualifying rate of the greater of the contractual mortgage rate plus two percentage points or the five-year benchmark rate published by the Bank of Canada. An existing stress test already requires those with insured mortgages to qualify at the central bank’s benchmark five-year mortgage rule.
However, borrowers who renew their uninsured mortgage with their existing lender are not subject to the new stress test, which took effect Jan. 1.
In turn, there is less incentive for lenders to offer lower rates to compete for market share, as they did during the so-called “mortgage wars” roughly five years ago.
“Some of their customers won’t be able to leave the bank,” said Scott Hannah, president and chief executive of the Credit Counselling Society. “Where is the motivation for financial institutions to offer the best rate?”
Craig Alexander, chief economist for the Conference Board of Canada, said the new underwriting guidelines were necessary to limit the growth in household debt and contain the associated risks.
“It’s just going to be a shock for some Canadians when they go shopping for a mortgage,” he said.
Mortgage broker network Dominion Lending Centres spokesman Dave Teixeira said clients looking to switch do have other options, such as credit unions which are provincially regulated and not required to implement the stress test. However, it is taking longer for its brokers to find another suitable lender, he added.
Alexander said Canadians will likely renew their mortgages at rates higher than they have currently, which will have a financial impact. He expects the share of income going towards servicing household debt to rise over the coming year, contributing to the trend of slowing consumer spending.
However, the economist stressed that interest rates still remain “incredibly low” and he does not expect the central bank to raise rates until next year.
“They have increased from where they were, but when you look at debt service costs for Canadians, they’re still quite manageable, except for a very small portion of the population,” Alexander said.
Research conducted by CIBC Economics suggests that just 20 per cent of all outstanding mortgage and non-mortgage debt is exposed to higher rates, said Pollick.
“This is a small proportion and, should have limited near-term ramifications,” he said. “Over time, as interest rates continue to rise, it will at some point in the future restrict consumption patterns.”
Source Article - Calgary Herald
Outdoor Deck Ideas for Great Backyard Entertaining
When it’s time to start planning your home’s exterior design, outdoor deck ideas are some of the first things to consider. It goes without saying that deck is often the statement piece of the backyard. The often visitors’ first impression of the backyard and and it is where many people spend the most time.
Since the outdoor deck plays such a key role for your exterior, it’s very important to give your design ample thought before diving in.
We’ve highlighted a few areas that you should be sure to take into account. Use these as a guide as you bring your outdoor deck together and you’ll create an equally functional and aesthetically pleasing space that will serve your family for years to come.
Consider Construction Materials
When it comes to outdoor deck ideas, your first point of consideration should be the construction materials used. There are four common types, but you’ll want to do some research before deciding which one works best for your family. The options are:
Pressure-Treated Lumber: The most popular and gives that classic hardwood look, but requires lots of maintenance and is very susceptible to warping.
Redwood: Other woods like Redwood and Cedar are slightly more durable, but are often more expensive.
Composite: Plastic or a composite material requires very little maintenance after installation, but can be limited in terms of color and other aesthetic options.
Aluminum: The most durable and also the most pricy material.
Focus On Functional Areas
As you begin to consider how to break up the space on your deck, your main focus should be on how you plan to use the space. It’s likely that you’ll want to use the deck in at least two or three distinct ways, so use furniture to visually separate the space into a few clearly defined functional areas.
Think about leaving a small picnic table in your play areas for the children or setting up a food prep station by the grill for those nights when you want to be able to barbecue. You may also want to consider adding at least one seating set where you can just relax or using a grand dining table to signify the eating area when it’s time to sit down for your al fresco meal.
Think About Flow Of Movement
Once it’s set up, your deck is bound to become a flurry of activity. Whether you have people carrying trays of food out a grill, climbing stairs from lower levels, or young children running around and playing games, as you’re designing the space it’s critical to consider the flow of movement.
Start by making sure that there is a clear and distinct path way between each of the different functional areas within the space. If you’re unsure if you’ve left enough room, take a step back and reevaluate from a distance. You’ll know instinctually if there’s enough room for someone to pass by unencumbered, but when in doubt, remember that in this case more room is better.
Add Multiple Levels
If you worry about having enough room to roam, you could always consider a few outdoor deck ideas that incorporate multiple levels. Building a deck of that caliber will undoubtedly add lots of architectural interest to your space while also giving you more control over the final design.
When dealing with multiple decks, you may want to consider moving each function area to its own level. Just be sure to tie them all together with aesthetic details like similar landscaping. Plus, you’ll want to make sure that they all connect via an easily-accessed stairway.
Plan Outdoor Deck Ideas Around Entertaining
By and large, entertaining is where your deck will really really shine. Whether you’re just serving up a casual dinner for your immediate family or you’re planning a big bash with all your friends on the guest list, you’ll want to make sure that your deck is set up to make hosting the event as simple as possible.
Making sure that your deck is outfitted with plenty of lighting and maybe even a few speakers will instantly set a party atmosphere. Also, the addition of an outdoor kitchen and/or wet bar is a great option for those who don’t want to be stuck in a kitchen while the party goes on outside.
Source Article
Spring Yard Cleaning
Just as people speak of "spring cleaning" tasks performed to freshen up a home that has been shuttered up all winter, so lawns and the rest of your landscaping need some TLC at this time of year, to prepare your yard for the growing season. A spring yard cleanup checklist can be divided into five categories of related tasks, one of which truly does involve something of a cleansing: the removal of refuse (natural or otherwise) from your grass and planting beds.
The other types of tasks discussed below involve getting your yard ready for gardening:
•Preparing flower beds
• Planting
• Pest control
• Weed control
• Plant care
A thorough spring yard cleanup readies your lawn and landscaping for summer, but it can accomplish more than just that. In some cases, it will save you from headaches farther down the road.
Spring Yard Cleanup With Rake, Trash Bags, and Scissors
In this first category of spring yard cleanup tasks, you will be picking up after Old Man Winter and any other slovenly bad neighbors you may have to put up with. Roll up your sleeves and start removing:
• Litter and dog feces
• Dead grass, leaves, pinecones, etc. on lawns
• Dead leaves and stalks on perennials
Unfortunately, many neighborhoods contain at least a few thoughtless individuals who insist on being litterbugs. One of the first spring cleanup tasks to tackle is removing the litter they've deposited in the yard over the course of the winter, the sight of which tends to put a damper on even the most pristine April day.
Don some heavy work gloves for this task, as it may involve removing broken glass.
Another unpleasant task in spring yard cleanup is dog waste disposal. It's especially unpleasant when you have to clean up after someone else's dog. There's not much you can do to stop litter, but there is something you can do to help keep other people's dogs from defecating on your property: Begin researching dog repellents.
You don't want to be out there all summer long with a pooper-scooper, do you? And no, don't compost dog feces, for the same reason you shouldn't try to compost cat poop: Carnivore feces contain pathogens, the removal of which through the composting process is best left to experts.
With the less wholesome aspects of spring cleanup out of the way, let's move on to lawn care. If you raked leaves thoroughly in the fall, you've aided your chances of avoiding the fungal disease known as "snow mold." But, inevitably, there will still be some stray leaves to rake come March. That's all right because even without leaves you would want to break out the rake as part of your spring cleaning work on the lawn. Why? Because a deep raking will also help control thatch build-up.
While you're raking the lawn, you'll also want to remove pinecones or any other instances of "nature's refuse." Pinecones don't break down particularly easy in a compost bin unless they are first shredded. Some people use pinecones in craft projects, such as making kissing balls, but, for the rest of us, they're just a nuisance.
Spring cleanup in the perennial bed begins with removing any dead leaves and stalks from perennials and ornamental grasses that you didn't remove in fall.
Scissors often work better than pruners for this task (you can get into tight spaces easier with them). For more on spring cleanup in perennial beds, see below.
Spring cleaning outdoors can be tackled in a much more joyous state of mind if you dangle a carrot in front of your nose the whole time. By "carrot" we are talking here about the reward with which tidying up outside culminates: planting and transplanting. But first things first. Let's take a look at preparing beds, before getting to planting and prevention issues.
Preparing Planting Beds and Fertilizing
In established perennial beds that performed well the prior year, working in some additional compost around your plants to fertilize them is the best thing you can do (beyond the tasks already discussed). Also remove weed plants as you encounter them (plus old, dead growth you didn't remove in the fall) -- no sense in letting them get ahead of you.
While on the subject of compost, note that it's not just for planting beds. Most all of your plants (including the grass in your lawn and your trees and shrubs) will enjoy a feeding of compost in the spring (later in the year, too, for that matter). The great thing about using compost as a fertilizer is that you never have to worry about burning plants with it. Compost is nature's slow-release fertilizer.
If you must use chemical fertilizers, always be careful to follow the application directions, because chemical fertilizers will burn plants when used in excess. The one chemical fertilizer that really is convenient (at least in theory) is the "weed and feed" type that contains a preemergent herbicide to prevent crabgrass.
To open up brand new planting beds, you have a few options, including:
• Using a tiller to break new ground.
• Killing grass using a smothering method, to convert lawn space into a planting bed.
• Building raised beds.
• In particularly rough areas, you may wish to consider soil solarization.
If you've just opened up a planting bed by breaking new ground, you can be sure that weeds will find it quickly. That's why, in some situations, it's smart to lay a landscape fabric over the ground and cover it with a layer of mulch (the mulch protects the landscape fabric from harmful UV rays). Many don't like landscape fabric in vegetable planting beds, where gardeners like to be able to reach down, scoop up a handful of soil, and admire its fertility up-close and personal; go with just a straight mulching here (straw is a favorite), if you feel the same way. But in a shrub planting bed, these weed barriers are a great ally in helping you achieve a low-maintenance yard.
Planting in Your Prepared Flower Beds
Early spring is a good time to install trees and shrubs and to plant perennial flower borders, as long as they're hardy perennials. For annuals and tender perennials, wait till the last frost date has passed for your region.
You can also start new lawns in spring or overseed a lawn that you already have.
However, if you will be applying a preemergent herbicide in spring to control crabgrass in an existing lawn, it may be better to overseed in the fall.
Prevention: Crabgrass, Garden Pests
Sometimes it's easier to fight weeds before they even emerge, rather than waiting till they rear their ugly heads. The use of landscape fabric and mulch was mentioned above in the context of garden beds, but you can't use either of those on a lawn. That's where preemergent herbicides come into play, particularly for crabgrass control. Spring is the time to use a pre-emergent herbicide such as corn gluten on crabgrass, and timing is of the essence. Crabgrass seed germinates when the soil temperature reaches 55 to 60 F. You need to apply the preemergent herbicide prior to this juncture. But who wants to keep sticking a thermometer in the ground to see if it's time yet, right? There's a more convenient method, used by the old-timers, and it involves keeping tabs on the flowering shrubs in your area. According to this method, just apply the preemergent herbicide sometime between the time the forsythias stop blooming and the lilacs begin blooming.
Garden pests pose another challenge that can best be addressed by taking preventive measures, in many cases. Many gardens need to be protected with rabbit-proof fences or deer fencing. In regions plagued by deer or rabbits, it's a smart idea to plant deer/rabbit-resistant plants where fencing isn't an option. An even greater number of gardeners are well advised to look into growing rabbit-proof flowers.
When Is the Best Time to Prune Shrubs?
There are different reasons to remove wood from shrubs. If we're talking about old, dead wood or wood recently damaged by winterkill, then the question is quite different in nature from when we're discussing healthy wood.
Yes, trees and shrubs can often profit from a bit of spring cleaning, too. Dead limbs and winterkill on branches should be pruned off. This is the easy part of pruning: Remember, you can't go wrong pruning off something that's already dead. And life and death are "color-coded" on trees and shrubs, just beneath their bark, with brown signaling death, green life. The key is determining where the brown ends and the green begins.
But when is the best time to prune shrubs, in terms of healthy wood? Here, the question is different, because you can go wrong with your timing. And while dead branches should always be removed, the necessity of pruning off live branches is often determined by one's eye for beauty on a small shrub (to give it a more aesthetically pleasing shape).
The question of the best time to prune flowering shrubs is the one that causes people more trepidation every spring since improper pruning will result in the loss of the blossoming displays to which we so look forward all winter long. To simplify, think of it this way:
Shrubs that bloom in spring have to have their buds already in place, on old wood (last year's growth), so that they're ready to kick into action when the warm weather comes; if you prune these branches off, you lose the flowers.
But shrubs that bloom later in the year don't need that head start, blooming instead on new wood (growth produced in the current season).
Group 1 above includes flowering shrubs such as:
• Forsythia
• Korean spice viburnum
• Lilacs
Wait to prune such shrubs until after they have finished blooming.
Group 2 above includes flowering shrubs such as:
• Butterfly bush
• Rose of Sharon
• Lavender
• Bluebeard
• Beautyberry
You can go ahead and prune such shrubs in late winter or early spring, if you wish, without fear of losing blooms.
Plant Care in Spring: What About the Mulch Covering Perennials?
Regarding any deep layer of mulch, you may have had covering your perennials during the winter, it is a good idea to monitor the situation to determine when to pull it away so that the perennials can come through unhindered. An exact date cannot be provided for when to remove the mulch protecting your perennials: You have to play it by ear, and when exactly you remove such mulch will, obviously, vary according to where you live. But if you've applied a deep layer of mulch, it will eventually need to be scraped away from the ground immediately under which your perennials lie, as otherwise, it may smother the perennials. The best approach, once the ground is starting to thaw, is to begin checking, in late winter or early spring, to see whether your perennials are pushing up. If they are, remove the mulch when it's warm out but replace it when the cold returns (until the cold stops returning altogether).
Plant Care in Spring: Dividing Perennials
Finally, some perennials can profit at times from being divided. Most perennials can be divided in spring,
The other types of tasks discussed below involve getting your yard ready for gardening:
•Preparing flower beds
• Planting
• Pest control
• Weed control
• Plant care
A thorough spring yard cleanup readies your lawn and landscaping for summer, but it can accomplish more than just that. In some cases, it will save you from headaches farther down the road.
Spring Yard Cleanup With Rake, Trash Bags, and Scissors
In this first category of spring yard cleanup tasks, you will be picking up after Old Man Winter and any other slovenly bad neighbors you may have to put up with. Roll up your sleeves and start removing:
• Litter and dog feces
• Dead grass, leaves, pinecones, etc. on lawns
• Dead leaves and stalks on perennials
Unfortunately, many neighborhoods contain at least a few thoughtless individuals who insist on being litterbugs. One of the first spring cleanup tasks to tackle is removing the litter they've deposited in the yard over the course of the winter, the sight of which tends to put a damper on even the most pristine April day.
Don some heavy work gloves for this task, as it may involve removing broken glass.
Another unpleasant task in spring yard cleanup is dog waste disposal. It's especially unpleasant when you have to clean up after someone else's dog. There's not much you can do to stop litter, but there is something you can do to help keep other people's dogs from defecating on your property: Begin researching dog repellents.
You don't want to be out there all summer long with a pooper-scooper, do you? And no, don't compost dog feces, for the same reason you shouldn't try to compost cat poop: Carnivore feces contain pathogens, the removal of which through the composting process is best left to experts.
With the less wholesome aspects of spring cleanup out of the way, let's move on to lawn care. If you raked leaves thoroughly in the fall, you've aided your chances of avoiding the fungal disease known as "snow mold." But, inevitably, there will still be some stray leaves to rake come March. That's all right because even without leaves you would want to break out the rake as part of your spring cleaning work on the lawn. Why? Because a deep raking will also help control thatch build-up.
While you're raking the lawn, you'll also want to remove pinecones or any other instances of "nature's refuse." Pinecones don't break down particularly easy in a compost bin unless they are first shredded. Some people use pinecones in craft projects, such as making kissing balls, but, for the rest of us, they're just a nuisance.
Spring cleanup in the perennial bed begins with removing any dead leaves and stalks from perennials and ornamental grasses that you didn't remove in fall.
Scissors often work better than pruners for this task (you can get into tight spaces easier with them). For more on spring cleanup in perennial beds, see below.
Spring cleaning outdoors can be tackled in a much more joyous state of mind if you dangle a carrot in front of your nose the whole time. By "carrot" we are talking here about the reward with which tidying up outside culminates: planting and transplanting. But first things first. Let's take a look at preparing beds, before getting to planting and prevention issues.
Preparing Planting Beds and Fertilizing
In established perennial beds that performed well the prior year, working in some additional compost around your plants to fertilize them is the best thing you can do (beyond the tasks already discussed). Also remove weed plants as you encounter them (plus old, dead growth you didn't remove in the fall) -- no sense in letting them get ahead of you.
While on the subject of compost, note that it's not just for planting beds. Most all of your plants (including the grass in your lawn and your trees and shrubs) will enjoy a feeding of compost in the spring (later in the year, too, for that matter). The great thing about using compost as a fertilizer is that you never have to worry about burning plants with it. Compost is nature's slow-release fertilizer.
If you must use chemical fertilizers, always be careful to follow the application directions, because chemical fertilizers will burn plants when used in excess. The one chemical fertilizer that really is convenient (at least in theory) is the "weed and feed" type that contains a preemergent herbicide to prevent crabgrass.
To open up brand new planting beds, you have a few options, including:
• Using a tiller to break new ground.
• Killing grass using a smothering method, to convert lawn space into a planting bed.
• Building raised beds.
• In particularly rough areas, you may wish to consider soil solarization.
If you've just opened up a planting bed by breaking new ground, you can be sure that weeds will find it quickly. That's why, in some situations, it's smart to lay a landscape fabric over the ground and cover it with a layer of mulch (the mulch protects the landscape fabric from harmful UV rays). Many don't like landscape fabric in vegetable planting beds, where gardeners like to be able to reach down, scoop up a handful of soil, and admire its fertility up-close and personal; go with just a straight mulching here (straw is a favorite), if you feel the same way. But in a shrub planting bed, these weed barriers are a great ally in helping you achieve a low-maintenance yard.
Planting in Your Prepared Flower Beds
Early spring is a good time to install trees and shrubs and to plant perennial flower borders, as long as they're hardy perennials. For annuals and tender perennials, wait till the last frost date has passed for your region.
You can also start new lawns in spring or overseed a lawn that you already have.
However, if you will be applying a preemergent herbicide in spring to control crabgrass in an existing lawn, it may be better to overseed in the fall.
Prevention: Crabgrass, Garden Pests
Sometimes it's easier to fight weeds before they even emerge, rather than waiting till they rear their ugly heads. The use of landscape fabric and mulch was mentioned above in the context of garden beds, but you can't use either of those on a lawn. That's where preemergent herbicides come into play, particularly for crabgrass control. Spring is the time to use a pre-emergent herbicide such as corn gluten on crabgrass, and timing is of the essence. Crabgrass seed germinates when the soil temperature reaches 55 to 60 F. You need to apply the preemergent herbicide prior to this juncture. But who wants to keep sticking a thermometer in the ground to see if it's time yet, right? There's a more convenient method, used by the old-timers, and it involves keeping tabs on the flowering shrubs in your area. According to this method, just apply the preemergent herbicide sometime between the time the forsythias stop blooming and the lilacs begin blooming.
Garden pests pose another challenge that can best be addressed by taking preventive measures, in many cases. Many gardens need to be protected with rabbit-proof fences or deer fencing. In regions plagued by deer or rabbits, it's a smart idea to plant deer/rabbit-resistant plants where fencing isn't an option. An even greater number of gardeners are well advised to look into growing rabbit-proof flowers.
When Is the Best Time to Prune Shrubs?
There are different reasons to remove wood from shrubs. If we're talking about old, dead wood or wood recently damaged by winterkill, then the question is quite different in nature from when we're discussing healthy wood.
Yes, trees and shrubs can often profit from a bit of spring cleaning, too. Dead limbs and winterkill on branches should be pruned off. This is the easy part of pruning: Remember, you can't go wrong pruning off something that's already dead. And life and death are "color-coded" on trees and shrubs, just beneath their bark, with brown signaling death, green life. The key is determining where the brown ends and the green begins.
But when is the best time to prune shrubs, in terms of healthy wood? Here, the question is different, because you can go wrong with your timing. And while dead branches should always be removed, the necessity of pruning off live branches is often determined by one's eye for beauty on a small shrub (to give it a more aesthetically pleasing shape).
The question of the best time to prune flowering shrubs is the one that causes people more trepidation every spring since improper pruning will result in the loss of the blossoming displays to which we so look forward all winter long. To simplify, think of it this way:
Shrubs that bloom in spring have to have their buds already in place, on old wood (last year's growth), so that they're ready to kick into action when the warm weather comes; if you prune these branches off, you lose the flowers.
But shrubs that bloom later in the year don't need that head start, blooming instead on new wood (growth produced in the current season).
Group 1 above includes flowering shrubs such as:
• Forsythia
• Korean spice viburnum
• Lilacs
Wait to prune such shrubs until after they have finished blooming.
Group 2 above includes flowering shrubs such as:
• Butterfly bush
• Rose of Sharon
• Lavender
• Bluebeard
• Beautyberry
You can go ahead and prune such shrubs in late winter or early spring, if you wish, without fear of losing blooms.
Plant Care in Spring: What About the Mulch Covering Perennials?
Regarding any deep layer of mulch, you may have had covering your perennials during the winter, it is a good idea to monitor the situation to determine when to pull it away so that the perennials can come through unhindered. An exact date cannot be provided for when to remove the mulch protecting your perennials: You have to play it by ear, and when exactly you remove such mulch will, obviously, vary according to where you live. But if you've applied a deep layer of mulch, it will eventually need to be scraped away from the ground immediately under which your perennials lie, as otherwise, it may smother the perennials. The best approach, once the ground is starting to thaw, is to begin checking, in late winter or early spring, to see whether your perennials are pushing up. If they are, remove the mulch when it's warm out but replace it when the cold returns (until the cold stops returning altogether).
Plant Care in Spring: Dividing Perennials
Finally, some perennials can profit at times from being divided. Most perennials can be divided in spring,








