Have You Considered Going Tankless?

Sabeena Bubber • October 1, 2015

If you are looking for ways to be more responsible with energy costs around your home (and save a little money in the process), considering a tankless water heater is probably already on your radar. But is it really worth it? There are certainly a lot of factors that will go into your decision about equipping your house with one of these units! Here are a couple things you should consider!

What are you trying to accomplish by going tankless?

The most common reasons people choose a tankless water heater are:

1. Not to have to wait for hot water.

2. Not to have the hot water run out.

3. To save space by not having a huge tank.

4. More environmentally responsible.

5. To save money long term on heating costs compared to a hot water tank.

However, before rushing into buying a tankless water heater, you should ask yourself?

1. How long am I currently waiting for hot water?

2. Am I currently running out of hot water on a regular basis?

3. Is saving space a concern for me?

4. How efficient is my current water heater? Obviously going tankless will be more efficient, but just how much more? There is a good chance your current unit is performing at a level that isn’t horrible.

5. How much money will I save yearly with a tankless heater compared to a hot water tank? Make sure you understand how long it will take to recover the added upfront costs of going tankless through the long term money savings on your energy bill! If it’s going to take you 75 years to recoup your money, is it really worth it?

Just as each house is different and has unique needs, so is each person and family. There is certainly no cut and dry, right or wrong answer when it comes to Tank vs Tankless. The best you can do is evaluate your needs and make an informed decision!

TRANSCRIPT

Water heating can account for 25 per cent of the energy bill for many Canadian homes – especially those with large families that use lots of hot water. Hot water usage can be reduced by installing low-flow shower heads, faucet aerators, insulating pipes, and water efficient appliances.

You may also be able to reduce your water heating bill by installing an “on-demand” or “instantaneous” water heater. These compact water heaters use high inputs of gas or electricity to instantly heat water as it is needed. As high-efficiency tankless water heaters don’t have to keep large volumes of water heated 24 hours a day, studies have shown that they can reduce energy consumption for water heating by 40 per cent.

Tankless water heaters can be hung on a wall and require little floor space making them attractive for smaller homes. But they need to be properly located, sized and installed to meet your household’s needs. For instance, gas-fired instantaneous water tanks may need different venting arrangements and perhaps larger gas pipes to deliver higher gas flows to the heater.

Keep in mind that the energy savings from an instantaneous water heater can literally go down the drain if their “endless” hot water capabilities just mean longer showers by household members.

Whatever system you choose, it’s always a good idea to know the costs and potential savings so you can make an informed decision. Ask a qualified contractor to assess your hot water needs and recommend a water heating system that will meet them as efficiently and cost-effectively as possible. To learn more about tankless water heaters, or for more information on sustainable features for your home, visit cmhc.ca.

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Get Protection From A Pre-Approval

By Sabeena Bubber • March 26, 2025

There is no doubt about it, buying a home can be an emotional experience. Especially in a competitive housing market where you feel compelled to bid over the asking price to have a shot at getting into the market. Buying a home is a game of balancing needs and wants while being honest with yourself about those very needs and wants. It’s hard to get it right, figuring out what’s negotiable and what isn’t, what you can live with and what you can’t live without. Finding that balance between what makes sense in your head and what feels right in your heart is challenging. And the further you are in the process, the more desperate you may feel. One of the biggest mistakes you can make when shopping for a property is to fall in love with something you can’t afford. Doing this almost certainly guarantees that nothing else will compare, and you will inevitably find yourself “settling” for something that is actually quite nice. Something that would have been perfect had you not already fallen in love with something out of your price range. So before you ever look at a property, you should know exactly what you can qualify for so that you can shop within a set price range and you won’t be disappointed. Protect yourself with a mortgage pre-approval. A pre-approval does a few things It will outline your buying power. You will be able to shop with confidence, knowing exactly how much you can spend. It will uncover any issues that might arise in qualifying for a mortgage, for example, mistakes on your credit bureau. It will outline the necessary supporting documentation required to get a mortgage so you can be prepared. It will secure a rate for 30 to 120 days, depending on your mortgage product. It will save your heart from the pain of falling in love with something you can’t afford. Obviously, there is nothing wrong with looking at all types of property and getting a good handle on the market; however, a pre-approval will protect you from believing you can qualify for more than you can actually afford. Get a pre-approval before you start shopping; your heart will thank you. If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!

Your Guide To The A First Home Savings Account (FHSA)

By Sabeena Bubber • March 19, 2025

Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers. What is an FHSA? An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA. Reasons to Invest in an FHSA: Save up to $40,000 for your first home. Contribute tax-free for up to 15 years. Carry over unused contribution room to the next year, up to a maximum of $8,000. Potentially reduce your tax bill and carry forward undeducted contributions indefinitely. Pay no taxes on investment earnings. Complements the Home Buyers’ Plan (HBP). How Does an FHSA Work? Open Your FHSA: Start investing tax-free by opening your FHSA. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster. Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home. Benefits of an FHSA: Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income. Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA. No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home. Numbers to Know: $8,000: Annual tax-deductible FHSA contribution limit. $40,000: Lifetime FHSA contribution limit. $0: Taxes on FHSA earnings when used for a qualifying home purchase. In Conclusion A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.

Bank of Canada Rate Announcement Mar 12th, 2025

By Sabeena Bubber • March 12, 2025

Bank of Canada reduces policy rate by 25 basis points to 2¾% FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario March 12, 2025 The Bank of Canada today reduced its target for the overnight rate to 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. The Canadian economy entered 2025 in a solid position, with inflation close to the 2% target and robust GDP growth. However, heightened trade tensions and tariffs imposed by the United States will likely slow the pace of economic activity and increase inflationary pressures in Canada. The economic outlook continues to be subject to more-than-usual uncertainty because of the rapidly evolving policy landscape. After a period of solid growth, the US economy looks to have slowed in recent months. US inflation remains slightly above target. Economic growth in the euro zone was modest in late 2024. China’s economy has posted strong gains, supported by government policies. Equity prices have fallen and bond yields have eased on market expectations of weaker North American growth. Oil prices have been volatile and are trading below the assumptions in the Bank’s January Monetary Policy Report (MPR). The Canadian dollar is broadly unchanged against the US dollar but weaker against other currencies. Canada’s economy grew by 2.6% in the fourth quarter of 2024 following upwardly revised growth of 2.2% in the third quarter. This growth path is stronger than was expected at the time of the January MPR. Past cuts to interest rates have boosted economic activity, particularly consumption and housing. However, economic growth in the first quarter of 2025 will likely slow as the intensifying trade conflict weighs on sentiment and activity. Recent surveys suggest a sharp drop in consumer confidence and a slowdown in business spending as companies postpone or cancel investments. The negative impact of slowing domestic demand has been partially offset by a surge in exports in advance of tariffs being imposed. Employment growth strengthened in November through January and the unemployment rate declined to 6.6%. In February, job growth stalled. While past interest rate cuts have boosted demand for labour in recent months, there are warning signs that heightened trade tensions could disrupt the recovery in the jobs market. Meanwhile, wage growth has shown signs of moderation. Inflation remains close to the 2% target. The temporary suspension of the GST/HST lowered some consumer prices, but January’s CPI was slightly firmer than expected at 1.9%. Inflation is expected to increase to about 2½% in March with the end of the tax break. The Bank’s preferred measures of core inflation remain above 2%, mainly because of the persistence of shelter price inflation. Short-term inflation expectations have risen in light of fears about the impact of tariffs on prices. While economic growth has come in stronger than expected, the pervasive uncertainty created by continuously changing US tariff threats is restraining consumers’ spending intentions and businesses’ plans to hire and invest. Against this background, and with inflation close to the 2% target, Governing Council decided to reduce the policy rate by a further 25 basis points. Monetary policy cannot offset the impacts of a trade war. What it can and must do is ensure that higher prices do not lead to ongoing inflation. Governing Council will be carefully assessing the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. The Council will also be closely monitoring inflation expectations. The Bank is committed to maintaining price stability for Canadians. Information note The next scheduled date for announcing the overnight rate target is April 16, 2025. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.