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View Article  Basement walls - Cracks & Shrinkage

Mike Holmes – Cracks and Shrinkage

So here’s a question for you, courtesy of dozens of emails: Dear Mike, I’ve got a crack in my foundation — is it a problem?

Yes, absolutely. And, not necessarily. There are different types of cracks, as well as different types of foundations. And, depending on where the crack is, it may or may not be a big deal.

I’m going to say it upfront: If you’ve noticed a crack in your basement floor or wall, you should call in a foundation specialist for an opinion. You aren’t qualified to assess if it’s serious, and I can’t see it from here. It may be a new crack, or it’s got bigger so you’ve just seen it for the first time. Neither of these is good news.

A lot of people are afraid of calling in specialists because they think it will cost more, or because they think there will be an upsell on the services required. But this is not something you should let slide, because the crack won’t fix itself.

In this case, “what I don’t know can’t hurt me” is 100% wrong. With a foundation crack, your house’s structure could be compromised, and that is serious.

Here are some things I do know: Small cracks can indicate big problems. Small cracks can let insects, vermin and water in. Small cracks can grow bigger, and the bigger the crack, the more expensive the repair.

Different cracks indicate different possible problems with your foundation, and they give clues to what the cause might be. Bulging and bowing walls, step cracks in blocks or bricks, vertical cracks, horizontal cracks,in walls, in floors — they all mean something.

The most common foundation cracks are caused by concrete shrinkage. Concrete is made with water, cement and aggregate — it will shrink as it cures and dries. It is affected by temperature. If its curing is interrupted by a drop in temperature — let’s say a cold freeze happens on the night your basement walls were poured — that will affect the final product. Or, if your basement pad was poured in intense heat and sun, it will dry too quickly. That will cause cracking.

Cracks caused by concrete shrinking aren’t usually a problem — at least not one that’s structural. But they can allow water or insects to get into your home, so they need to be dealt with.

Another reason might be settlement; your house is settling into the soil. That’s not so good, and there are a few things that may be causing it. For example, if your house’s footings aren’t adequate or are damaged, there might be settlement, which can cause cracks.

This settlement might be caused by something beyond your control. For example, if the soil around your home is saturated with water, or if your area has had a drought for a long time, you may find problems develop with your foundation. In the first case, the groundwater rises and exerts pressure against your house’s foundation walls and floor. In the case of extended dry periods, the soil actually shrinks as the water evaporates out and that can allow your foundation to settle. That settling may cause a part of your home to sink.

Concrete has a lot of compressive strength but not much tensile strength, so it’s prone to cracking if there is lateral pressure pushing against a wall. That’s why we add rebar or fibre to concrete in some situations to improve its tensile strength.

So where is that pressure coming from? There is a lot of pressure from the water that’s held in the soil around your home, and in the water table. The amount of this water will change, depending on seasonal rain and drought, especially on clay soil.

Think of your house as a boat, except instead of floating in water, it’s sort of floating in the soil that surrounds the basement. That soil is fluid; it’s in motion, and it’s shifting and exerting pressure at all times on your foundation.

Some wet soils can be almost 40% water. So, think about extremely dry conditions, when that soil will shrink, and how that can affect your home. In times when there is too much rainfall over a prolonged period of time, what’s that water pressure going to do? And, in winter when that water freezes, it will expand, putting more pressure against the wall of your foundation. That can cause a crack.

There are lots of other reasons for cracks in foundations, some as simple as backfilling around the house during construction. That can lead to cracking, either by equipment hitting the wall or dumping the load against the improperly supported wall.

Not all cracks should be taken lightly. A horizontal crack is one I’d pay attention to. Typically, it indicates your wall’s structural integrity has been undermined.

Horizontal cracking higher up on the wall is usually from frost damage, and the freeze-thaw cycle; water from your downspouts or sump pump saturates the area, it freezes and exerts pressure on the basement wall. Or it might be from vehicle damage or improper backfill.

When it comes to basement cracks, don’t be an ostrich and stick your head in the ground. If you’ve got a foundation crack, check it out. Call in a structural engineer or foundation specialist for an opinion.

Article supplied by National Post – July, 2010

View Article  Fixed vs Variable Rates

Fixed vs Variable

Economists are predicting the overnight lending rate (which controls bank prime) will increase by as much as 200 basis points (2%) within the next 24 months.  Borrowers are agonizing over the decision – fixed or variable.  The variable rate mortgage is so low today but those rates are not going to last.  So do they lock into a 5 year fixed rate or take a chance?  I have done some calculations and offer the following results.

If a borrower today mortgages $250,000 over a 25 year amortization with monthly payments and chose a 5 year fixed rate of 4.39%, their principal balance at the end of the 5 year term would be $219,089.

If the same borrower chose a VRM at prime less .50% and prime rose by 2.0% over the next 2 years and rose to 5.50% by year 5, their principal balance at the end of 5 years would be $208,845.

The savings is $10,244 over 5 years.  This is pretty significant.  The other advantage to a Variable Rate Mortgage is if the term is broken prior to the maturity date, the penalty is only 3 months interest.  However, a variable rate mortgage is not for everyone.  If you need the piece of mind a fixed rate offers, today’s rates are still very affordable.

 

Welcome to the July issue of the News & Rate Advisor.

Current Mortgage Rates

Variable Rate

1.90%

1 Year

2.60%

2 Year

3.10%

3 Year

3.49%

4 Year

3.99%

5 Year

4.19%

7 Year

4.90%

10 Year

5.49%

Prime Rate

2.50%

* Rates subject to change and OAC.

 

Canadian Qualifying Rate

Jul 2010

Rate

5.89%

Source: Bank of Canada

 

Current Mortgage Rates - 1/3/5 Year Rates

Jul 2010

Jul 2009

Jul 2008

1 Year

3.50%

3.75%

6.95%

3 Year

4.40%

4.55%

7.00%

5 Year

5.79%

5.85%

7.15%

Source: Bank of Canada

 

Nationwide Building Permits

May 2010

May 2009

May 2008

Residential

$3,661,371,000

$2,669,262,000

$3,727,245,000

Commercial

$2,322,123,000

$2,468,803,000

$2,948,191,000

Total

$5,983,494,000

$5,138,065,000

$6,675,436,000

Source: Stats Canada - preliminary figures

 

Current Bank & Prime Rates

Jul 2010

Jul 2009

Jul 2008

Bank Rate

0.75%

0.50%

3.25%

Prime Rate

2.50%

2.25%

4.75%

Source: Bank of Canada

 

 

Average House Prices by Province

May 2010

May 2009

May 2008

National

$346,881

$319,757

$318,761

Yukon

$311,778

$309,039

$304,871

Northwest Territories

$409,490

$337,577

$331,939

British Columbia

$497,371

$465,139

$477,448

Alberta

$364,303

$339,296

$360,284

Saskatchewan

$237,618

$242,829

$233,340

Manitoba

$229,813

$204,276

$203,671

Ontario

$352,523

$322,059

$316,103

Quebec

$252,558

$227,393

$219,886

New Brunswick

$166,057

$166,672

$152,823

Prince Edward Island

$145,113

$149,475

$126,661

Nova Scotia

$218,129

$207,135

$202,569

Newfoundland

$200,649

$200,649

$170,999

Source: CREA - Most Recent Month Reported

 

Average House Prices by City

May 2010

May 2009

May 2008

Yellowknife

$409,490

$337,577

$331,939

Vancouver

$661,745

$583,674

$624,639

Victoria

$515,126

$482,119

$514,100

Edmonton

$340,723

$326,332

$340,499

Calgary

$417,978

$382,632

$418,881

Saskatoon

$294,516

$279,477

$301,527

Regina

$252,053

$263,424

$235,458

Toronto

$446,593

$395,609

$398,148

Hamilton-Burlington

$315,647

$297,132

$293,927

Ottawa-Carleton

$334,360

$312,927

$296,580

Quebec City

$238,594

$211,501

n/a

Montreal

$300,807

$271,386

n/a

Fredericton

$177,822

$176,615

$168,893

Saint John

$173,872

$188,500

$168,158

Halifax-Dartmouth

$264,539

$248,209

$234,692

Winnipeg

$237,697

$208,806

n/a

Source: CREA - Most Recent Month Reported


Garry Parkes
Leader

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Joanne Lesko Sean Kirady & Becky Parkes
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