New year, fresh take on saving in your home

It might be hard to imagine now, but once the tree and tinsel are put away and the presents are unwrapped, your house is going to look mighty empty. Why not look at it from a whole new perspective — as a source of extra savings in 2016.

With a little legwork and some creativity, you can cut your monthly home costs significantly and leave extra money in your wallet to spend on something else (or pay down your mortgage and save even more money over time).

To get your started, here are five things you might be able to do right away to save big next year: Switch to cheaper cleaning products Ditch the pricey bottled spray cleaners and opt for old-fashioned (and green!) cleaners instead — a spray bottle of brand-name all-purpose cleaner will set you back about $5 and you’ll go through one a month. A big jug of white-vinegar cleaner will do the trick for about half the price — and it will last longer, too. Granted, this won’t save you thousands, but even a few bucks a month is better than nothing. Renegotiate your home insurance Home insurance rates have been on the rise in Canada, but there are ways you to reduce your rate. You could increase your deductible from, say, $500 to $1,000 or $2,000.

Also, review your coverage and make sure it reflects any improvements you’ve made to your home — installing carbon monoxide detectors or a new roof, for example, could make a difference in what you pay.

Taking a closer look at your mortgage and home insurance could save you thousands of dollars in the long run

Create a home maintenance calendar Whether you need to clean your eavestroughs, check your plumbing for leaks or change the filter in your furnace, making a list of home maintenance jobs can make sure you’re keeping your home in top shape. You’ll also avoid the costly repairs that result from poor maintenance and easily avoided wear and tear. Think about it — a regular maintenance check that keeps your basement dry or your furnace lasting longer can end up saving you thousands over the years. Take a look at your mortgage Even though rates could be heading up, there are still some good deals to be had, especially if you’re renewing after a five-year term.

Note: renegotiating is best if you’re getting close to the end of your term; otherwise you can get hit with a hefty penalty for breaking your mortgage.

But consider that monthly payments on a $200,000 mortgage with a 25-year term and a fixed rate of 4 per cent will cost you $1,052.04 per month. Take that rate down to 3 per cent and your payments go to $946.49 a month — a difference of about $105 a month, or $1,260 a year. Put that money into an emergency fund — or pay off your home faster.

And that’s nothing compared to what you could save in interest during the term of your mortgage — at 4 per cent, you’d end up paying $37,230.24 in interest over your five-year term. Bump that down to 3 per cent and you’d pay nearly $10,000 less, according to the Financial Consumer Agency of Canada’s mortgage payment calculator. Do your own cleaning If you’re paying $100 a week for someone to clean your home, you’re shelling out upwards of $5,200 a year. If you opt to do your own cleaning, you can save a significant amount of money — and if you’re a family with kids at home, then you have a built-in team to pitch in. Cleaning is at the bottom of many people’s lists, but it’s important to be mindful of how much you can save by taking on the job yourself.