Connect with us

Real Estate

TTC Gearing Up For Electric and Hybrid Electric Bus Fleet





Last week the TTC received its first ever Hybrid Electric bus. This bus represents just the first of 55 to be received by the end of 2018, with another 200 arriving by the end of 2019. The TTC estimates that this vehicle will be in revenue service within the next two weeks, after it undergoes testing and commissioning.

This order is part of the TTC’s Green Bus Technology Plan, which was initially outlined in late 2017. The timelines for the goals have been modified slightly since the original plan, with the TTC aiming to achieve a 50% zero emission fleet by 2028-2032, and 100% zero emission by 2038-2042 (originally proposed as 2040). These targets will help the City of Toronto achieve the 80% reduction (from 1990 levels) in Greenhouse Gas emissions by 2050 that it outlined in its Transform TO Climate Change and Clean Air Action Plan. In accordance with this, the last Clean Diesel buses that the TTC will ever purchase will be delivered by the end of 2018.

The first of the TTC's 255 new Hybrid Electric busesThe first of the TTC’s 255 new Hybrid Electric buses, image courtesy of the TTC

Hybrid electric buses use an electric motor that is charged by a combination of an on-board diesel engine and regenerative braking. The diesel engine provides direct power for the battery, negating the need for an external charging station, while the regenerative braking transfers the kinetic energy of the brakes coming in contact with the wheels into electrical energy, which can be fed back into the battery. The end result is an approximately 25% reduction in fuel consumption as compared with a standard clean diesel bus. This electric motor also powers all of the bus’ component systems, including the doors, HVAC, and power steering.

The TTC has also placed an order for 60 completely electric buses (eBuses), which are scheduled to arrive throughout 2019. The TTC had originally planned to purchase only 30 eBuses, but in June 2018 decided to up that number to 60. The background report for that meeting can be found here. The total cost of this purchase is $120 million, which includes both the buses themselves and the associated infrastructure.

Timeline for delivery of eBuses and installation of related infrastructureTimeline for delivery of eBuses and installation of related infrastructure, image courtesy of the TTC

Rather than buying these fully electric 60 buses from one supplier as they did with the Hybrid Electric buses, the TTC has chosen to purchase from three separate manufacturers, in order to test their reliability, durability, and operability on Toronto’s streets (and in our climate). The three manufacturers are:

  • BYD, a Chinese company with a plant in California
  • NewFlyer, based in Winnipeg
  • Proterra, based in the US

Earlier this year Urban Toronto provided a very thorough overview of these companies and the technologies they offer. If you would like more details on the buses themselves, it is worth a read. The remainder of this article will focus primarily on the physical infrastructure required to facilitate these buses.

Unlike Hybrid Electric buses, these eBuses do not produce their own power on-board, and like traditional consumer Electric Vehicles (EVs), require the use of designated charging stations. Unfortunately, unlike the consumer EV market which, with the exception of Tesla, has chosen two nearly-universal port types (J1772 for Level 2 charging and CHAdeMO for Level 3), the eBus industry is much more manufacturer-specific.

BYD uses a charging system whereby the DC (direct current) from the charging station is converted to AC (alternating current) on-board the bus. This is in contrast to most other charging stations and vehicles, including those from NewFlyer and Proterra, where the DC-AC conversion is done at the charging station itself. The end result is that charging station infrastructure is tied very closely with vehicle type.

This lack of interoperability has caused the TTC to divide the 60 eBuses between three garages across the city, with 20 each at Mount Dennis (Etobicoke/York), Arrow (North York), and Eglinton (Scarborough). The distribution and infrastructure requirements are shown in the graphic below.

Home bus locations of the 60 eBuses the TTC has purchasedHome bus locations of the 60 eBuses the TTC has purchased, image courtesy of the TTC

One issue with having 20 buses at each location is that it would exceed facility peak energy limits. To solve this issue, the TTC will install an Energy Storage System (ESS), basically a big battery, at each garage location. These ESSs will charge slowly during the day, as to not overload the electrical grid. Then at night, the eBus charging stations will be able to draw from both the ESS and the grid in order to complete the charging cycles for the buses.

Electrical load profile without ESSs, which exceeds capacityElectrical load profile without ESSs, which exceeds capacity, image courtesy of the TTC

Electrical load profile with ESSs, which falls below capacityElectrical load profile with ESSs, which falls below capacity, image courtesy of the TTC

Even with these ESSs installed, the maximum charging limit at each garage is 20 vehicles. As a longer-term solution for once the eBus fleet expands, the TTC will work with Toronto Hydro to add substations at garage sites in order to increase electrical capacity, which is anticipated to negate this issue. This is part of a larger effort on the part of the TTC and Toronto Hydro to future-proof the TTC garages in order to handle the demands of an increasingly zero emission fleet. The total cost of the upgrades required to accommodate 300 zero emission vehicles is estimated to be $18 million, which includes the required substations and backup generators.

The under-construction McNicoll Garage is also being designed to be able to handle eBuses, and is being built with similar specs to what the existing garages are being retrofitted to.

Microgrid diagram showing the energy supply and uses for the TTC garagesMicrogrid diagram showing the energy supply and uses for the TTC garages, image courtesy of the TTC

Urban Toronto will keep you updated on the TTC’s Hybrid Electric and eBus programs. If you would like to share your thoughts on these programs, you can do so by visiting our forum thread, or by leaving a comment below.


Source link

قالب وردپرس

Real Estate

5 ways to reduce your mortgage amortization




Since the pandemic hit, a lot of Canadians have been affected financially and if you’re on a mortgage, reducing your amortization period can be of great help.

A mortgage amortization period is the amount of time it would take a homeowner to completely pay off their mortgage. The amortization is typically an estimate based on what the interest rate for your current term is. Calculating your amortization is done easily using a loan amortization calculator which shows you the different payment schedules within your amortization period.

 In Canada, if you made a down payment that is less than the recommended 20 per cent of the total cost of your home, then the longest amortization period you’re allowed to have is 25 years. The mortgage amortization period not only affects the length of time it would take to completely repay the loan, but also the amount of interest paid over the lifecycle of the mortgage.

Typically, longer amortization periods involve making smaller monthly payments and having a much higher total interest cost over the duration of the mortgage. While on the other hand, shorter amortization periods entails making larger monthly payments and having lower total interest costs.

It’s the dream of every homeowner to become mortgage-free. A general rule of thumb would be to try and keep your monthly mortgage costs as low as possible—preferably below 30 per cent of your monthly income. Over time, you may become more financially stable by either getting a tax return, a bonus or an additional source of income and want to channel that towards your principal.

There are several ways to keep your monthly mortgage payments low and reduce your amortization. Here are a few ways to achieve that goal:

1. Make a larger down payment

Once you’ve decided to buy a home, always consider putting asides some significant amount of money that would act as a down payment to reduce your monthly mortgage. While the recommended amount to put aside as a down payment is 20 per cent,  if you aren’t in a hurry to purchase the property or are more financial buoyant, you can even pay more.

Essentially, the larger your down payment, the lower your mortgage would be as it means you’re borrowing less money from your lender. However, if you pay at least 20 per cent upfront, there would be no need for you to cover the additional cost of private mortgage insurance which would save you some money.

2. Make bi-weekly payments

Most homeowners make monthly payments which amount to 12 payments every year. But if your bank or lender offers the option of accelerated bi-weekly payment, you will be making an equivalent of one more payment annually. Doing this will further reduce your amortization period by allowing you to pay off your mortgage much faster.

3. Have a fixed renewal payment

It is normal for lenders to offer discounts on interest rate during your amortization period. However, as you continuously renew your mortgage at a lower rate, always keep a fixed repayment sum.

Rather than just making lower payments, you can keep your payments static, since the more money applied to your principal, the faster you can clear your mortgage.

4. Increase your payment amount

Many mortgages give homeowners the option to increase their payment amount at least once a year. Now, this is very ideal for those who have the financial capacity to do so because the extra money would be added to your principal.

Irrespective of how small the increase might be, in the long run, it would make a huge difference. For example, if your monthly mortgage payment is about $2,752 per month. It would be in your best interest to round it up to $2,800 every month. That way, you are much closer to reducing your mortgage amortization period.

5. Leverage on prepayment privileges

The ability for homeowners to make any form of prepayment solely depends on what mortgage features are provided by their lender.

With an open mortgage, you can easily make additional payments at any given time. However, if you have a closed mortgage—which makes up the larger percentage of existing mortgages—you will need to check if you have the option of prepayments which would allow you to make extra lump sum payments.

Additionally, there may also be the option to make extra lump sum payments at the end of your existing mortgage term before its time for renewal.

Continue Reading

Real Estate

Mortgage insurance vs. life insurance: What you need to know




Your home is likely the biggest asset you’ll ever own. So how can you protect it in case something were to happen to you? To start, homeowners have a few options to choose from. You can either:

  • ensure you have mortgage protection with a life insurance policy from an insurance company or
  • get mortgage insurance from a bank or mortgage lender.

Mortgage insurance vs. life insurance: How do they each work?  

The first thing to know is that life insurance can be a great way to make sure you and your family have mortgage protection.

The money from a life insurance policy usually goes right into the hands of your beneficiaries – not the bank or mortgage lender. Your beneficiaries are whoever you choose to receive the benefit or money from your policy after you die.

Life insurance policies, like term life insurance, come with a death benefit. A death benefit is the amount of money given to your beneficiaries after you die. The exact amount they’ll receive depends on the policy you buy.

With term life insurance, you’re covered for a set period, such as 10, 15, 20 or 30 years. The premium – that’s the monthly or annual fee you pay for insurance – is usually low for the first term.

If you die while you’re coved by your life insurance policy, your beneficiaries will receive a tax-free death benefit. They can then use this money to help pay off the mortgage or for any other reason. So not only is your mortgage protected, but your family will also have funds to cover other expenses that they relied on you to pay.

Mortgage insurance works by paying off the outstanding principal balance of your mortgage, up to a certain amount, if you die.

With mortgage insurance, the money goes directly to the bank or lender to pay off the mortgage – and that’s it. There’s no extra money to cover other expenses, and you don’t get to leave any cash behind to your beneficiaries.

What’s the difference between mortgage insurance and life insurance?

The main difference is that mortgage insurance covers only your outstanding mortgage balance. And, that money goes directly to the bank or mortgage lender, not your beneficiary. This means that there’s no cash, payout or benefit given to your beneficiary. 

With life insurance, however, you get mortgage protection and more. Here’s how it works: every life insurance policy provides a tax-free amount of money (the death benefit) to the beneficiary. The payment can cover more than just the mortgage. The beneficiary may then use the money for any purpose. For example, apart from paying off the mortgage, they can also use the funds from the death benefit to cover:

  • any of your remaining debts,
  • the cost of child care,
  • funeral costs,
  • the cost of child care, and
  • any other living expenses. 

But before you decide between life insurance and mortgage insurance, here are some other important differences to keep in mind:

Who gets the money?

With life insurance, the money goes to whomever you name as your beneficiary.

With mortgage insurance, the money goes entirely to the bank.

Can you move your policy?

With life insurance, your policy stays with you even if you transfer your mortgage to another company. There’s no need to re-apply or prove your health is good enough to be insured.

With mortgage insurance, however, your policy doesn’t automatically move with you if you change mortgage providers. If you move your mortgage to another bank, you’ll have to prove that your health is still good.

Which offers more flexibility, life insurance or mortgage insurance?

With life insurance, your beneficiaries have the flexibility to cover the mortgage balance and more after you die. As the policy owner, you can choose how much insurance coverage you want and how long you need it. And, the coverage doesn’t decline unless you want it to.

With mortgage insurance through a bank, you don’t have the flexibility to change your coverage. In this case, you’re only protecting the outstanding balance on your mortgage.

Do you need a medical exam to qualify? 

With a term life insurance policy from Sun Life, you may have to answer some medical questions or take a medical exam before you’re approved for coverage. Once you’re approved, Sun Life won’t ask for any additional medical information later on.

With mortgage insurance, a bank or mortgage lender may ask some medical questions when you apply. However, if you make a claim after you’re approved, your bank may ask for additional medical information.* At that point, they may discover some conditions that disqualify you from receiving payment on a claim.

Continue Reading

Real Estate

5 common mistakes Canadians make with their mortgages




This article was created by MoneyWise. Postmedia and MoneyWise may earn an affiliate commission through links on this page.

Since COVID-19 dragged interest rates to historic lows last year, Canadians have been diving into the real estate market with unprecedented verve.

During a time of extraordinary financial disruption, more than 551,000 properties sold last year — a new annual record, according to the Canadian Real Estate Association. Those sales provided a desperately needed dose of oxygen for the country’s gasping economy.

Given the slew of new mortgages taken out in 2020, there were bound to be slip-ups. So, MoneyWise asked four of the country’s sharpest mortgage minds to share what they feel are the mistakes Canadians most frequently make when securing a home loan.

Mistake 1: Not having your documents ready

One of your mortgage broker’s primary functions is to provide lenders with paperwork confirming your income, assets, source of down payment and overall reliability as a borrower. Without complete and accurate documentation, no reputable lender will be able to process your loan.

But “borrowers often don’t have these documents on hand,” says John Vo of Spicer Vo Mortgages in Halifax, Nova Scotia. “And even when they do provide these documents, they may not be the correct documentation required.”

Some of the most frequent mistakes Vo sees when borrowers send in their paperwork include:

  • Not including a name or other relevant details on key pieces of information.
  • Providing old bank or pay statements instead of those dated within the last 30 days.
  • Sending only a partial document package. If a lender asks for six pages to support your loan, don’t send two. If you’re asked for four months’ worth of bank statements, don’t provide only one.
  • Thinking low-quality or blurry files sent by email or text will be good enough. Lenders need to be able to read what you send them.

If you send your broker an incomplete documents package, the result is inevitable: Your mortgage application will be delayed as long as it takes for you to find the required materials, and your house shopping could be sidetracked for months.

Mistake 2: Blinded by the rate

Ask any mortgage broker and they’ll tell you that the question they’re asked most frequently is: “What’s your lowest rate?”

The interest rate you’ll pay on your mortgage is a massive consideration, so comparing the rates lenders are offering is a good habit once you’ve slipped on your house-hunter hat.

Rates have been on the rise lately given government actions to stimulate the Canadian economy. You may want to lock a low rate now, so you can hold onto it for up to 120 days.

But Chris Kolinski, broker at Saskatoon, Saskatchewan-based iSask Mortgages, says too many borrowers get obsessed with finding the lowest rate and ignore the other aspects of a mortgage that can greatly impact its overall cost.

“I always ask my clients ‘Do you want to get the best rate, or do you want to save the most money?’ because those two things are not always synonymous,” Kolinski says. “That opens a conversation about needs and wants.”

Many of the rock-bottom interest rates on offer from Canadian lenders can be hard to qualify for, come with limited features, or cost borrowers “a ton” of money if they break their terms, Kolinski points out.

Mistake 3: Not reading the fine print

Dalia Barsoum of Streetwise Mortgages in Woodbridge, Ontario, shares a universal message: “Read the fine print. Understand what you’re signing up for.”

Most borrowers don’t expect they’ll ever break their mortgages, but data collected by TD Bank shows that 7 in 10 homeowners move on from their properties earlier than they expect.

It’s critical to understand your loan’s prepayment privileges and the rules around an early departure. “If you exit the mortgage, how much are you going to pay? It’s really, really important,” Barsoum says.

She has seen too borrowers come to her hoping to refinance a mortgage they received from a private or specialty lender, only to find that what they were attempting was impossible.

Continue Reading