Branch Banking Now Trails Online Banking
Internet-banking-in-CanadaCanadians are slowly becoming less attached to branches.
In the last year, 80% of bank customers visited a branch while 86% used online banking. Two years ago, the numbers were reversed at 84% and 80% respectively.
This data comes from a new J.D. Power and Associates report released Thursday. The study finds that one in five bank customers have not made a branch visit in the past year, with many preferring to do business with e-banks like ING Direct, PC Financial and Manulife Bank.
J.D. Power also reports that customer satisfaction has dropped by a significant five percentage points at the major banks. That, and the online banking shift, should have major banks slightly concerned.
For financial institutions trying to woo tech-savvy customers, their website is becoming as important as their branches.
JD-powerLubo Li, a Senior Director at J.D. Power and Associates, covers Canada’s financial services sector. His research finds three key factors that clients look for in an online banking site (in this order):
1) Appearance of the website
e.g., aesthetics, a professional look, etc.
2) Ease of navigation
e.g., the intuitiveness of the user interface and number of clicks required to access key functions
3) Range of services
e.g., the breadth of products and services available on the same website
ING-DirectThe top-ranked online banking site in Canada is currently INGDirect.ca, according to J.D. Power. “Nobody is even close to ING,” says Li. ING’s website scored 879 out of 1,000 with respondents. The top-ranking Big 5 bank website was TD Canada Trust, with a score of 820.
"ING is doing a phenomenal job delivering a superior customer experience," Li says, adding that major banks could learn something from Canada’s #1 online bank brand. ING’s site is upbeat, clutter-free and highly intuitive in terms of navigation.
Interestingly, overall customer satisfaction with online banking sites fell this year by eight percentage points. Li partly attributes that to people having “higher expectations” for websites nowadays. So if your homepage looks like a build-it-yourself website template from 1998, it could be hurting you more than you realize
For a glimpse of ING's website click here.
Source:http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2012/07/branch-banking-now-trails-online-banking.html
Tuesday, July 31, 2012
Tuesday, July 24, 2012
Where are rates going?
Interest Rates Remain Steady
Last week, the Bank of Canada (BoC) made its fifth scheduled key interest rate announcement of 2012, and as expected, this rate remained at 1.00%, where it has been for almost two years.
At the same time, the BoC released its latest Monetary Policy Report (MPR), which is designed to give Canadians a look at where both the global and Canadian economy may be headed down the line.
This report is far more cautious in nature than the last MPR, which was released in April, and the BoC is forecasting weaker prospects for global economic growth, and is expecting the Canadian economy to pick up the pace in terms of growth in 2013. Currently, the BoC is projecting a 2.1 per cent growth in 2012 (down from April’s forecast of 2.4 percent in 2012 and 2013), 2.3 per cent in 2013, and 2.5 per cent in 2014 (up from 2.2 per cent).
“The economy is expected to reach full capacity in the second half of 2013, thus operating with a small amount of slack for somewhat longer than previously anticipated.” – BoC Monetary Policy Report, July 2012
Unlike April’s report, this one does not come with a warning from the BoC in regards to mortgage rates rising faster than expected.
Bond Yields Down
Five-year Government of Canada (GoC) bonds decreased three points last week, closing at 1.15 per cent on Friday. As five-year GoC bond yields drive fixed mortgage rates, we could be seeing a slight decrease in fixed rates over the next few weeks.
Mortgage Rate Recap
Earlier this month, a number of banks – including both TD and RBC, dropped their 1-year and 2-year fixed rates. Last week, Bank of Montreal and National Bank followed suit, reducing their 1-year and 2-year fixed rates to remain competitive. Desjardins also decreased their 2-year fixed rate, while TD Canada Trust reduced their 3-year fixed rate by 10bps from 3.95% to 3.85%. Note that these rates are at the branch level, not necessarily through a broker.
Source: http://www.ratehub.ca/mortgage-blog/2012/07/monday-mortgage-update-july-23-2012/#more-4172
Last week, the Bank of Canada (BoC) made its fifth scheduled key interest rate announcement of 2012, and as expected, this rate remained at 1.00%, where it has been for almost two years.
At the same time, the BoC released its latest Monetary Policy Report (MPR), which is designed to give Canadians a look at where both the global and Canadian economy may be headed down the line.
This report is far more cautious in nature than the last MPR, which was released in April, and the BoC is forecasting weaker prospects for global economic growth, and is expecting the Canadian economy to pick up the pace in terms of growth in 2013. Currently, the BoC is projecting a 2.1 per cent growth in 2012 (down from April’s forecast of 2.4 percent in 2012 and 2013), 2.3 per cent in 2013, and 2.5 per cent in 2014 (up from 2.2 per cent).
“The economy is expected to reach full capacity in the second half of 2013, thus operating with a small amount of slack for somewhat longer than previously anticipated.” – BoC Monetary Policy Report, July 2012
Unlike April’s report, this one does not come with a warning from the BoC in regards to mortgage rates rising faster than expected.
Bond Yields Down
Five-year Government of Canada (GoC) bonds decreased three points last week, closing at 1.15 per cent on Friday. As five-year GoC bond yields drive fixed mortgage rates, we could be seeing a slight decrease in fixed rates over the next few weeks.
Mortgage Rate Recap
Earlier this month, a number of banks – including both TD and RBC, dropped their 1-year and 2-year fixed rates. Last week, Bank of Montreal and National Bank followed suit, reducing their 1-year and 2-year fixed rates to remain competitive. Desjardins also decreased their 2-year fixed rate, while TD Canada Trust reduced their 3-year fixed rate by 10bps from 3.95% to 3.85%. Note that these rates are at the branch level, not necessarily through a broker.
Source: http://www.ratehub.ca/mortgage-blog/2012/07/monday-mortgage-update-july-23-2012/#more-4172
Thursday, June 7, 2012
Will Rate Rise?
Overnight Rate Held Steady
Bank-of-Canada-Benchmark-RateThe Bank of Canada has left its policy rate as is, at 1%.
In today’s rate announcement, the Bank also toned down hints that it may resume rate hikes sooner than expected.
What it didn't do, however, is remove a key statement from April about future rate increases being necessary.
Here’s more on that, and highlights from the BoC’s public release:
Bank-of-Canada“…Some modest withdrawal of the present considerable monetary policy stimulus may become appropriate…” (This phrase debuted in the BoC’s April report. The market was eager to see if it would remain, and it did. Carney wants debt-laden consumers to know he’s ready to lift rates as soon as conditions warrant.)
“The outlook for global economic growth has weakened in recent weeks.”
“Some of the risks around the European crisis are materializing and risks remain skewed to the downside. This is leading to a sharp deterioration in global financial conditions.” (Canadian interest rate policy is largely held captive by this factor. The BoC must watch—like the rest of us—to see how EU events unfold.)
“…(Canadian) housing activity has been stronger than expected, and households continue to add to their debt burden in an environment of modest income growth.” (Near-record-low rates continue to drive this activity.)
“…Domestic financial conditions remain very stimulative.” (In other words, things would have to get a lot worse to justify a rate cut.)
For mortgagors, the above suggests that prime rate will stay put at 3.00% for the foreseeable future. That should keep us in the longest period of flat rates since the 1950s.
Source:http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2012/06/overnight-rate-held-steady.html,June5,2012, Rob McLister, CMT
Bank-of-Canada-Benchmark-RateThe Bank of Canada has left its policy rate as is, at 1%.
In today’s rate announcement, the Bank also toned down hints that it may resume rate hikes sooner than expected.
What it didn't do, however, is remove a key statement from April about future rate increases being necessary.
Here’s more on that, and highlights from the BoC’s public release:
Bank-of-Canada“…Some modest withdrawal of the present considerable monetary policy stimulus may become appropriate…” (This phrase debuted in the BoC’s April report. The market was eager to see if it would remain, and it did. Carney wants debt-laden consumers to know he’s ready to lift rates as soon as conditions warrant.)
“The outlook for global economic growth has weakened in recent weeks.”
“Some of the risks around the European crisis are materializing and risks remain skewed to the downside. This is leading to a sharp deterioration in global financial conditions.” (Canadian interest rate policy is largely held captive by this factor. The BoC must watch—like the rest of us—to see how EU events unfold.)
“…(Canadian) housing activity has been stronger than expected, and households continue to add to their debt burden in an environment of modest income growth.” (Near-record-low rates continue to drive this activity.)
“…Domestic financial conditions remain very stimulative.” (In other words, things would have to get a lot worse to justify a rate cut.)
For mortgagors, the above suggests that prime rate will stay put at 3.00% for the foreseeable future. That should keep us in the longest period of flat rates since the 1950s.
Source:http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2012/06/overnight-rate-held-steady.html,June5,2012, Rob McLister, CMT
Thursday, May 31, 2012
CHMC Mortgage Survey
Are you curious to know what is going on in the mortgage industry? Check out these interesting statistics from the annual survey produced from CMHC.
71%: of consumers researched mortgages online, up from 65% in 2011. (Somewhere down the line we'll see this number in the 90% range.)
86%: of those researching mortgages online search for interest rates. (Rates are the #1 mortgage research topic. No surprise.)
61%: of buyers reported receiving explanations about the impact of mortgage prepayments and the effect of rising interest rates during their information and mortgage selection process.
71%: of consumers who went online used a mortgage calculator.
20%: of first-time buyers used social media (up from just 3% in 2010).
43%: of social media users used the interactive nature of social media either to solicit opinions or to provide answers to other mortgage consumers.
27%: of mortgage consumers used a mortgage broker to arrange their mortgage in 2012, vs. 23% in 2011.
46%: of consumers were contacted by their mortgage professional after their mortgage closed.
77%: of those using the services of a broker said they were satisfied with their experience.
1.9: the average number of brokers that recent buyers contacted in order to learn about mortgage options.
2.7: the average number of lenders that recent buyers contacted in order to learn about mortgage options.
34: the average age of a first-time homebuyer. The survey also found that first-time buyers have a:
higher incidence of using a mortgage broker
lower level of lender loyalty
higher incidence of using online resources for mortgage research
higher use of social media, and
greater time spent doing mortgage research.
5 weeks: the average time mortgage consumers spend doing research before making a mortgage product decision. First-time buyers spend an average of eight weeks.
We find these facts very interesting and can shed some light on the growth of the mortgage industry. For more detail and further information check out the full survey at
http://www.canadianmortgagetrends.com/files/cmhc-mortgage-consumer-survey-2012-1.pdf
Thursday, May 17, 2012
How To Get The Best Mortgage Rate
This Week's HOT TOPIC ... Getting the best rate
Ever wonder how your neighbour, colleague, or close friend got such a good deal on their new mortgage rate? Why they seem to get this fantastic rate that seems so much lower than any quote you got from your own bank?
In today's newsletter we are going to discuss five key ideas that you can implement in your mortgage shopping strategy so that you come out a winner. Yes, you too can have access to the lowest rates around.
Step 1 - Use a mortgage broker
No shock here. As most of our readers know we strongly believe in using your mortgage broker as a trusted resource. A broker can help reduce your time and energy spent on shopping for the best rate. Brokers have a good understanding of who is offering what rate. They can point out the lowest possible rate in the industry, but more importantly can also point out the pros and cons to that product.
Step 2 - Have good credit
It is important to have good credit when applying for a mortgage. Most of the posted rates you find on the internet are contingent on the applicant having a reasonable credit score. When applicants have less than average credit you may be looking at a higher rate than necessary.
Step 3 - Have a larger mortgage
When you approach a bank for a mortgage who do you think has a better chance at getting a better rate on the loan? Obviously a borrower with $300,000 in debt will fare better than some one looking to borrow $50,000. Bankers are more willing to let commissions go to lower your rate if they still stand to make money off your deal.
Step 4 - Bring additional business to the bank
Hey, if you are willing to roll your entire financial wealth over to one institution, then go for it. Just be aware that you are putting all your eggs in one basket. Some bankers, especially those on commission, will drool over the idea of gaining several accounts with one easy transaction, and may entice the representative to lower rates for you.
Step 5 - Use a smaller lender
Sometimes when approaching a big bank there is little to no wiggle room. They know that they can sit back and some one else is bound to walk through that door later today. Smaller lenders may not react the way. They deal on smaller volumes and tend to not want to let business go. Smaller lenders tend to give their best food forward upfront, no haggling necessary.
So if you are in the market for a new mortgage, and struggling to find the best rate out there, hopefully these five steps will help you. And if all else fails, come talk to us. Maybe what you are looking for isn't the cheapest product, but rather the best product for your financial needs.
Ever wonder how your neighbour, colleague, or close friend got such a good deal on their new mortgage rate? Why they seem to get this fantastic rate that seems so much lower than any quote you got from your own bank?
In today's newsletter we are going to discuss five key ideas that you can implement in your mortgage shopping strategy so that you come out a winner. Yes, you too can have access to the lowest rates around.
Step 1 - Use a mortgage broker
No shock here. As most of our readers know we strongly believe in using your mortgage broker as a trusted resource. A broker can help reduce your time and energy spent on shopping for the best rate. Brokers have a good understanding of who is offering what rate. They can point out the lowest possible rate in the industry, but more importantly can also point out the pros and cons to that product.
Step 2 - Have good credit
It is important to have good credit when applying for a mortgage. Most of the posted rates you find on the internet are contingent on the applicant having a reasonable credit score. When applicants have less than average credit you may be looking at a higher rate than necessary.
Step 3 - Have a larger mortgage
When you approach a bank for a mortgage who do you think has a better chance at getting a better rate on the loan? Obviously a borrower with $300,000 in debt will fare better than some one looking to borrow $50,000. Bankers are more willing to let commissions go to lower your rate if they still stand to make money off your deal.
Step 4 - Bring additional business to the bank
Hey, if you are willing to roll your entire financial wealth over to one institution, then go for it. Just be aware that you are putting all your eggs in one basket. Some bankers, especially those on commission, will drool over the idea of gaining several accounts with one easy transaction, and may entice the representative to lower rates for you.
Step 5 - Use a smaller lender
Sometimes when approaching a big bank there is little to no wiggle room. They know that they can sit back and some one else is bound to walk through that door later today. Smaller lenders may not react the way. They deal on smaller volumes and tend to not want to let business go. Smaller lenders tend to give their best food forward upfront, no haggling necessary.
So if you are in the market for a new mortgage, and struggling to find the best rate out there, hopefully these five steps will help you. And if all else fails, come talk to us. Maybe what you are looking for isn't the cheapest product, but rather the best product for your financial needs.
Tuesday, May 1, 2012
Interest Rate Outlook
Bank of Canada suggests rate hikes soon…
April 18, 2012 — Steve Garganis
The Bank of Canada met on Tuesday for the 3rd of eight scheduled meetings this year to set the Bank of Canada rate. As expected, no rate change… But there were some language in the meeting that suggests we could start to see rates go up as early as this year…. here’s an article from The Star and reaction from TD’s Economist.
In short, it appears and I stress the word, appears, as though Mr. Carney is warning us that interest rates will be rising sometime soon. But Economists aren’t buying into that warning just yet. There is still too much uncertainly about the global, U.S. and domestic economies. And as long as these concerns persist, then interest rates should remain low.
SOME EXPERTS DON’T BELIEVE ALL THE DOOM AND GLOOM STORIES
It’s true, we have experienced emergency interest rates for over 3 years now… It’s no secret the govt is concerned about Canadians get into too much debt. You’ve heard the figures. The average Canadians owes around 153% of their annual income…. concerns about a housing bubble. But how does that compare with the rest of the world? Here’s an interesting article from the Financial Post’s Andrew Coyne, which says there are other countries that carry 200% and 300% of their annual income in personal debt… there doesn’t seem to be the level of concern about their economies. So why are we in such a panic?
It appears we are at a point where rates could go up but a lot of things would have to fall into place before that happens… it could take 6, 9 months or even a few years before that happens… maybe longer…? Any rate increase is sure to be slow…. Don’t panic… if you see an opportunity where you can benefit from these low rates, then act on it… don’t let the media scare you into inaction or lack of action…..
And as always, speak with a professional that can discuss and explain the different mortgage products and trends… make an informed choice.
Source:http://canadamortgagenews.ca/2012/04/18/bank-of-canada-suggests-rate-hikes-soon/
April 18, 2012 — Steve Garganis
The Bank of Canada met on Tuesday for the 3rd of eight scheduled meetings this year to set the Bank of Canada rate. As expected, no rate change… But there were some language in the meeting that suggests we could start to see rates go up as early as this year…. here’s an article from The Star and reaction from TD’s Economist.
In short, it appears and I stress the word, appears, as though Mr. Carney is warning us that interest rates will be rising sometime soon. But Economists aren’t buying into that warning just yet. There is still too much uncertainly about the global, U.S. and domestic economies. And as long as these concerns persist, then interest rates should remain low.
SOME EXPERTS DON’T BELIEVE ALL THE DOOM AND GLOOM STORIES
It’s true, we have experienced emergency interest rates for over 3 years now… It’s no secret the govt is concerned about Canadians get into too much debt. You’ve heard the figures. The average Canadians owes around 153% of their annual income…. concerns about a housing bubble. But how does that compare with the rest of the world? Here’s an interesting article from the Financial Post’s Andrew Coyne, which says there are other countries that carry 200% and 300% of their annual income in personal debt… there doesn’t seem to be the level of concern about their economies. So why are we in such a panic?
It appears we are at a point where rates could go up but a lot of things would have to fall into place before that happens… it could take 6, 9 months or even a few years before that happens… maybe longer…? Any rate increase is sure to be slow…. Don’t panic… if you see an opportunity where you can benefit from these low rates, then act on it… don’t let the media scare you into inaction or lack of action…..
And as always, speak with a professional that can discuss and explain the different mortgage products and trends… make an informed choice.
Source:http://canadamortgagenews.ca/2012/04/18/bank-of-canada-suggests-rate-hikes-soon/
Thursday, April 26, 2012
To Clean Or Not To Clean
Should You Get Your Heating Ducts Cleaned?
A hot air furnace heats and distributes air through its ducting system.The ducts are usually made of sheet metal and are most obvious in your basement, where they hang from the floor joists.The return, or cold air, ducts bring air to the furnace, usually collecting it centrally in the house. The return air trunk duct is the big rectangular duct along the basement ceiling that enters the bottom of the furnace. The supply, or warm air, ducting usually exits from the top of the furnace. It starts with a trunk duct on the basement ceiling.The individual supply ducts, in round or smaller rectangular sheet metal, branch off the trunk duct and go to each room, where they terminate in a floor or wall register. Over time, dust and debris will collect in these ducts, particularly in the return air ducts.You may be wondering whether it would be worthwhile to have these ducts cleaned.
Duct cleaning is a major industry. As a homeowner, you may be regularly solicited to have your heating ducts cleaned on a regular basis. Claims are made that duct cleaning will:
provide you with better indoor air quality (or IAQ),
reduce the presence of house molds and allergens,
get rid of house dust,
result in more airflow and better delivery of warm air, and/or
reduce energy costs.
If you expect duct cleaning to make these improvements, you may be disappointed. It is difficult to find objective and independent research which substantiates these claims.
What Can Duct Cleaning Do For You?
A thorough duct cleaning done by a professional duct cleaner will remove dust and debris-pet hair, paper clips, children's toys and whatever else might collect down there. Ideally, the inside surface will be shiny and bright after cleaning. Duct cleaning may be justifiable to you personally for that very reason: you may not want to have your house air circulated through a duct passage that is not as clean as the rest of the house. However, duct cleaning will not usually change the quality of the air you breathe, nor will it significantly affect airflows or heating costs.
In the 1990s, duct cleaning research conducted by Canada Mortgage and Housing Corporation (CMHC)1,2 and the US Environmental Protection Agency (EPA)3 tested house and duct performance before and after cleaning. Researchers observed little or no discernible differences in the concentrations of house airborne particles or in duct airflows due to duct cleaning. This is because ducts are just metal passages.They cannot create dust. Most household dust comes from outdoor dust that has been tracked in or blows through windows or other openings. ''Dust'' is also created by human skin and hair shedding, pet debris, fibres from carpets, clothes, bedding, hobbies etc. In fact, as you walk around in your house you raise a small cloud of dust particles wherever you go. Dust will be present in one form or another whether you have clean ducts or not.
Householders often expect an efficient furnace filter will remove airborne dust. CMHC has tested the effectiveness of furnace filters in reducing household dust. While some very good filters effectively clean the air in the ducts, they do not create a dust-free environment in your house because of all the dust sources mentioned above. A good filter will help keep your air-conditioning coil, furnace heat exchanger, and supply ducts from accumulating circulated dust. For more information on filters consult the CMHC publication Your Furnace Filter in the About Your House series.
1 Efficiency of Residential Duct Cleaning , Auger, Donnini, and Nguyen Inc. for CMHC 1994
2 Use of Biocides by Residential Duct Cleaners , Figley Consulting Associates for CMHC, 1994
3 Should You Have the Air Ducts in Your Home Cleaned?, US EPA, 1997
When Does Duct Cleaning Make Sense?
There are several situations when duct cleaning could make sense (although there is little research data to support this).
If you have a problem with water in your ducts, this may result in mold growth in the duct. In this situation, solve the water problem first, clean and disinfect the ducts where mold growth has occurred, and have the rest of the ducting system cleaned as well. In some cases, it may be necessary or more cost effective to simply replace the affected duct areas.
If you are moving into a newly constructed house, and have doubts about the diligence of the construction crew, duct cleaning can be useful. Drywall dust, fibreglass pieces, and sawdust have no place in ducts. Duct cleaning will also catch the odd occurrence where lunch bags or soft drink cans have fallen or been swept into ducting. For similar reasons, duct cleaning may be advisable for older houses following major renovations.
If you are having trouble with furnace airflow, a duct cleaning could reveal significant blockages. Have the ducts cleaned before you embark on more expensive duct replacement or rerouting to solve an airflow problem. Cleaning of furnace and air conditioning components (e.g. furnace fan blower, air conditioning coil, humidifier, furnace heat exchanger, etc.) has been shown to make some difference in duct air flow.
If you look in the return air registers and see an accumulation of debris in the duct below, you may want to have it removed. CMHC research showed that return air ducts, which are relatively big and have slow moving air, are generally far dirtier than the supply ducts.You should be able to accomplish much of the return air duct cleaning with a household vacuum cleaner after removing the register grill. For example, households with hairy pets or young children may find it necessary to inspect their return air ducts more frequently. Do not expect any difference in airflow or house air quality after this cleaning.
How Should Your Ducts Be Cleaned?
There are various duct cleaning procedures available. Reputable duct cleaners will be familiar with different techniques and their effectiveness. Duct cleaners affiliated with heating and air conditioning firms may be able to provide a more thorough system tune-up. Check to see if the duct cleaners are affiliated with trade organizations.They should also be able to offer references from satisfied customers. Some duct cleaners visually inspect the ducts after their work, either through duct access panels that they cut into the sheet metal or by in-duct cameras. This allows some proof of the effectiveness of the cleaning.
Do not accept offers from duct cleaners to spray or fog the ducts upon completion of the work, ostensibly to get rid of residual bacteria or mold.There are no products registered under the Pest Control Products Act in Canada for residential duct cleaning. Registered products, if they existed, would have been tested for effectiveness and human safety. A proper duct cleaning job does not require the use of a biocide to clean up missed areas. Based on current research, broadcast spraying of biocides through houses is considered inappropriate if you wish to maintain good indoor air quality.
So... To Clean or Not To Clean?
This choice is up to you. Duct cleaning may possibly improve air quality of houses in cases where serious moisture or blockage problems exist in the ducting.
A comprehensive cleaning of all heating and cooling system components (furnace fan blower, furnace heat exchange, air conditioning coil, humidifier, ducts, etc.) may help air movement within the house. However, regular duct cleaning is probably unnecessary for most householders.
Some people will choose to have their ducts cleaned simply because they feel that they cannot do this task easily themselves, and they prefer to have any accumulation of dust and dirt within the house removed regularly. Ensure that any duct cleaning that takes place in your home does not include broadcast spraying of biocides within the duct system.
Source:http://www.cmhc.ca/en/co/maho/gemare/gemare_011.cfm
A hot air furnace heats and distributes air through its ducting system.The ducts are usually made of sheet metal and are most obvious in your basement, where they hang from the floor joists.The return, or cold air, ducts bring air to the furnace, usually collecting it centrally in the house. The return air trunk duct is the big rectangular duct along the basement ceiling that enters the bottom of the furnace. The supply, or warm air, ducting usually exits from the top of the furnace. It starts with a trunk duct on the basement ceiling.The individual supply ducts, in round or smaller rectangular sheet metal, branch off the trunk duct and go to each room, where they terminate in a floor or wall register. Over time, dust and debris will collect in these ducts, particularly in the return air ducts.You may be wondering whether it would be worthwhile to have these ducts cleaned.
Duct cleaning is a major industry. As a homeowner, you may be regularly solicited to have your heating ducts cleaned on a regular basis. Claims are made that duct cleaning will:
provide you with better indoor air quality (or IAQ),
reduce the presence of house molds and allergens,
get rid of house dust,
result in more airflow and better delivery of warm air, and/or
reduce energy costs.
If you expect duct cleaning to make these improvements, you may be disappointed. It is difficult to find objective and independent research which substantiates these claims.
What Can Duct Cleaning Do For You?
A thorough duct cleaning done by a professional duct cleaner will remove dust and debris-pet hair, paper clips, children's toys and whatever else might collect down there. Ideally, the inside surface will be shiny and bright after cleaning. Duct cleaning may be justifiable to you personally for that very reason: you may not want to have your house air circulated through a duct passage that is not as clean as the rest of the house. However, duct cleaning will not usually change the quality of the air you breathe, nor will it significantly affect airflows or heating costs.
In the 1990s, duct cleaning research conducted by Canada Mortgage and Housing Corporation (CMHC)1,2 and the US Environmental Protection Agency (EPA)3 tested house and duct performance before and after cleaning. Researchers observed little or no discernible differences in the concentrations of house airborne particles or in duct airflows due to duct cleaning. This is because ducts are just metal passages.They cannot create dust. Most household dust comes from outdoor dust that has been tracked in or blows through windows or other openings. ''Dust'' is also created by human skin and hair shedding, pet debris, fibres from carpets, clothes, bedding, hobbies etc. In fact, as you walk around in your house you raise a small cloud of dust particles wherever you go. Dust will be present in one form or another whether you have clean ducts or not.
Householders often expect an efficient furnace filter will remove airborne dust. CMHC has tested the effectiveness of furnace filters in reducing household dust. While some very good filters effectively clean the air in the ducts, they do not create a dust-free environment in your house because of all the dust sources mentioned above. A good filter will help keep your air-conditioning coil, furnace heat exchanger, and supply ducts from accumulating circulated dust. For more information on filters consult the CMHC publication Your Furnace Filter in the About Your House series.
1 Efficiency of Residential Duct Cleaning , Auger, Donnini, and Nguyen Inc. for CMHC 1994
2 Use of Biocides by Residential Duct Cleaners , Figley Consulting Associates for CMHC, 1994
3 Should You Have the Air Ducts in Your Home Cleaned?, US EPA, 1997
When Does Duct Cleaning Make Sense?
There are several situations when duct cleaning could make sense (although there is little research data to support this).
If you have a problem with water in your ducts, this may result in mold growth in the duct. In this situation, solve the water problem first, clean and disinfect the ducts where mold growth has occurred, and have the rest of the ducting system cleaned as well. In some cases, it may be necessary or more cost effective to simply replace the affected duct areas.
If you are moving into a newly constructed house, and have doubts about the diligence of the construction crew, duct cleaning can be useful. Drywall dust, fibreglass pieces, and sawdust have no place in ducts. Duct cleaning will also catch the odd occurrence where lunch bags or soft drink cans have fallen or been swept into ducting. For similar reasons, duct cleaning may be advisable for older houses following major renovations.
If you are having trouble with furnace airflow, a duct cleaning could reveal significant blockages. Have the ducts cleaned before you embark on more expensive duct replacement or rerouting to solve an airflow problem. Cleaning of furnace and air conditioning components (e.g. furnace fan blower, air conditioning coil, humidifier, furnace heat exchanger, etc.) has been shown to make some difference in duct air flow.
If you look in the return air registers and see an accumulation of debris in the duct below, you may want to have it removed. CMHC research showed that return air ducts, which are relatively big and have slow moving air, are generally far dirtier than the supply ducts.You should be able to accomplish much of the return air duct cleaning with a household vacuum cleaner after removing the register grill. For example, households with hairy pets or young children may find it necessary to inspect their return air ducts more frequently. Do not expect any difference in airflow or house air quality after this cleaning.
How Should Your Ducts Be Cleaned?
There are various duct cleaning procedures available. Reputable duct cleaners will be familiar with different techniques and their effectiveness. Duct cleaners affiliated with heating and air conditioning firms may be able to provide a more thorough system tune-up. Check to see if the duct cleaners are affiliated with trade organizations.They should also be able to offer references from satisfied customers. Some duct cleaners visually inspect the ducts after their work, either through duct access panels that they cut into the sheet metal or by in-duct cameras. This allows some proof of the effectiveness of the cleaning.
Do not accept offers from duct cleaners to spray or fog the ducts upon completion of the work, ostensibly to get rid of residual bacteria or mold.There are no products registered under the Pest Control Products Act in Canada for residential duct cleaning. Registered products, if they existed, would have been tested for effectiveness and human safety. A proper duct cleaning job does not require the use of a biocide to clean up missed areas. Based on current research, broadcast spraying of biocides through houses is considered inappropriate if you wish to maintain good indoor air quality.
So... To Clean or Not To Clean?
This choice is up to you. Duct cleaning may possibly improve air quality of houses in cases where serious moisture or blockage problems exist in the ducting.
A comprehensive cleaning of all heating and cooling system components (furnace fan blower, furnace heat exchange, air conditioning coil, humidifier, ducts, etc.) may help air movement within the house. However, regular duct cleaning is probably unnecessary for most householders.
Some people will choose to have their ducts cleaned simply because they feel that they cannot do this task easily themselves, and they prefer to have any accumulation of dust and dirt within the house removed regularly. Ensure that any duct cleaning that takes place in your home does not include broadcast spraying of biocides within the duct system.
Source:http://www.cmhc.ca/en/co/maho/gemare/gemare_011.cfm
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