Supplementing Your Home's Water Supply

Canadians enjoy some of the highest quality water in the world. But despite our abundant supply of fresh water, it remains, by its very nature, a valuable resource that should be conserved and protected - particularly in those areas of Canada facing water shortage. As a result, more Canadians are paying attention to the amount of water they use, and are cutting back by using water wisely and purchasing water-efficient fixtures and appliances.

Another way to conserve water is by using auxiliary water sources - if permitted - to supplement and conserve the local pubic water supply. Auxiliary water includes everything from rainwater collected from your downspouts, to "greywater" that's collected from the laundry or shower, treated and reused for non-drinking purposes around your house.

If you are thinking about using auxiliary water sources from your home, Canada Mortgage and Housing Corporation (CMHC) offers the following tips on how to supplement your water supply while keeping your family safe and healthy, and not running afoul of local building regulations:

• If you're building or renovating a house, find out from your local building department what is allowed, what is not and what may be required to get municipal approved.
• Auxiliary water sources must use a separate plumbing system so it is not mixed with your potable water. Talk to your builder, architect, renovator or plumber as early in the process as possible about including auxiliary water-ready components in your home. This may include dedicated piping for auxiliary water as well as any related storage and treatment systems. Planning  for those components now could save you a great deal of time and money in renovations later, regardless of whether you include the auxiliary supply today or at some point in the future.
• Work with your contractor to determine how much water and what level of water quality is needed for different uses in your home. This will help ensure the system is designed properly and will be able to supply all the water your family needs, at whatever level of quality you require.
• Make sure you know where the water you're collecting comes from and identify its purpose. Not all of the water you collect from different fixtures can be used for the same purpose. For example, water that's collected from your shower may be safely treated and reused to flush your toilet, But only fully potable (drinkable) water should ever be used in the shower itself. Again, make sure you check with your municipality. 
• Depending on how you're using the auxiliary water, you may also need to think about storing the water before it's used. For instance, using rainwater collected from your downspouts to water your lawn is often used immediately, without any further treatment. But if you're collecting greywater for use in toilet flushing, you may need to treat and store the water so it's available on demand.
• Find out what programs or regulations are in effect in your area when it comes to auxiliary water. Some communities, like the City of Guelph, offer rebates for homeowners who use auxiliary water. Other cities may have rules in place that limit what kind of water you can reuse. Always check with your local municipality or water authority before you install an auxiliary water system in  your home.

To find out more about auxiliary water sources, or for information on any other aspect of owning, maintaining or buying a home, visit www.cmhc.com or call 1-800-668-2642

Know Your Options During Separation

Since most couples have a joint mortgage - one where both names are on the mortgage and title of the home - when separation or divorce proceedings get underway, many wonder what will happen with the home.

When the marriage comes to an end, there are two obvious options concerning the home:

1. Sell the property and split the proceeds according to your agreement and go separate ways; or
2. One person buys the other party out of the mortgage and the title of the property.

The first option is a straight-forward transaction where you put the house up for sale, sell and split the proceeds. The second option, however, is slightly more complicated.

The decision between the options is a personal one borne out of the specific circumstances of the parties involved. Perhaps there are young kids involved that need to stay in the house, the market is down and there will be a loss on the property that neither party can afford, one party can't afford to buy the other party out, etc.

Once the decision is made, how do you go about buying the other person out of a mortgage? Well, essentially, you're refinancing your mortgage, using a single income (the person who's buying the other party out of the house) and qualification, versus the original purchase, which was based on joint income and qualification.

If you're the one buying your partner out, the first step is to ensure that you can afford the mortgage payments.

This is imperative because the lender will ask for proof that you're capable of covering the mortgage in order for you to apply on your own. In addition to covering the mortgage amount, you'll have to come up with whatever dollar amount you have agreed on to buy the other partner out. This may come out of the equity in your home if it's sufficient.

In essence, if you can afford the mortgage on your own, the most common means of buying out your partner post-separation and transferring title out of the joint name and into your name, is to refinance. I can help you through each step of this process. And although the maximum refinance on a home is 80% of the appraised value, given the unique circumstances surrounding separation, you can often refinance up to 95% of your home's value.

If you're not in a financial position to buy your ex-partner out of the house, and you agree to both stay on title and have payment arrangements, there's one warning to be taken very seriously - just because one person is responsible for the payments (even with a court order), if the mortgage goes into default, both parties on the mortgage will be affected.

The most important piece of advice when dealing with a mortgage during a separation is to become informed. Know your options, talk to professionals about your options and make an informed decision regarding your home and mortgage.

As always, if you have any questions about the information above or your mortgage in general, I'm here to help!