Energy-Efficient Home Rebates Every Homeowner Should Know About

In Canada, when you pay less than 20% down on a home purchase, you are required to get mortgage default insurance (often called CMHC insurance, though other providers exist). This one-time premium can either be paid upfront or added to your mortgage principal and paid off over time with interest, increasing your overall cost of buying the home.

Thankfully, there are ways to reduce these additional mortgage costs. Some leading Canadian insurers offer mortgage insurance rebates to homeowners who meet specific energy efficiency and building standards, helping to lower overall expenses.

There are three main mortgage insurers in Canada: Canada Mortgage and Housing Corporation (CMHC), Canada Guaranty, and Sagen. Today, we'll discuss how to apply, how much you can get, and who qualifies. Let's get started!

01Canadian Mortgage and Housing Corporation (CMHC)

Homeowners with CMHC mortgage insurance who are buying or building an energy-efficient home can benefit from the Eco Plus program. This initiative helps reduce both housing costs and carbon footprints by offering a 25% partial premium refund on mortgage insurance for homes that meet energy efficiency standards.

Eligibility Criteria

To qualify, your home must have recognised energy efficiency certifications and meet specific targets for both total energy consumption and greenhouse gas (GHG) emissions. In terms of GHG emissions, properties must rank within the top 15% of the housing stock for the lowest emissions. Additionally, the home's energy rating must be at least 20% lower (in gigajoules per year) compared to a typical new home.

How to Apply

After purchasing your house, you have up to two years to submit your application, along with the energy efficient certifications. You must download and complete the application form on the CMHC website. For more details on eligibility criteria and how to send an application, visit the CMHC website.

02Canada Guaranty

If your mortgage financing is insured through Canada Guaranty, you can receive a 25% premium refund for purchasing an energy-efficient home or making energy-efficient upgrades.

Eligibility Criteria

The property must meet one of these energy efficiency or greenhouse gas emissions criteria- it must be certified under eligible certifications, have greenhouse gas emissions within the lowest 15% of housing inventory or have at least 20% lower energy consumption than a typical new house.

How to Apply

Applications must be submitted within 24 months of the mortgage closing date. For more details on eligibility criteria and how to send an application, visit the Canada Guaranty website.

03Sagen

Sagen’s energy-efficient program offers a refund of 25% of the premium for the premium of the Sagen mortgage insurance.

Eligibility Criteria

The property must meet eligible certification criteria, fall within the top 15th percentile for lowest GHG emissions, or have at least 20% lower energy consumption than a typical new house.

How to Apply

Eligible applicants must provide documentation, such as a certified program report or EnerGuide label, and submit an application within 24 months of closing. Refunds are processed within 8-12 weeks, with conditions such as premiums being paid before the refund and supporting documents being no older than 5 years. For more details, visit the Sagen website.

Takeaway

There are various rebate programs offered by Canada's top mortgage insurers—CMHC, Canada Guaranty, and Sagen—that reward homeowners 25% of rebate on mortgage insurance premium for purchasing or upgrading to energy-efficient homes. These programs are a great way to lower your mortgage costs while making an environmentally conscious investment in your home.

The maximum rebate you could qualify for is $9,250, assuming the home purchase price is $999,999 with a minimum down payment of $75,000, and mortgage insurance premiums of $37,000. It's important to note that the exact rebate amount can vary depending on the insurer, home purchase price, and other factors.

If you purchased your home through one of The Canadian Home realtors, we’re here to assist you with the entire application process. If you bought through a different realtor, reach out directly to your insurance provider to start the process.

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