Did you know you can save money on your mortgage insurance simply by choosing an energy-efficient home or making eco-friendly upgrades? Canada’s three major mortgage insurers—CMHC, Sagen, and Canada Guaranty—each offer programs that refund 25% of your mortgage insurance premium for energy-efficient homes or upgrades. Whether you’re buying, building, or renovating, there’s an opportunity to save money while supporting sustainability!
What’s the Program?
Each insurer offers a program to encourage Canadians to invest in energy-efficient housing:
- New Builds: Homes built to eco-friendly standards (like ENERGY STAR®, R-2000, or LEED certifications).
- Upgrades: Existing homes with recently completed energy-efficient improvements, such as upgraded insulation, efficient windows, or renewable energy systems.
- Resale Homes with Eco Upgrades: If you’re buying a resale home where the seller has made recent energy-efficient upgrades and can provide documentation, you are still entitled to the refund. I am aware that CMHC will do this, but worth checking if you are insured through Sagen or Canada Guaranty
How It Works
- Check Eligibility
- For new homes, look for energy certifications (ENERGY STAR®, R-2000, etc.).
- For existing homes or resale properties, provide proof of recent upgrades (e.g., receipts or certifications).
- Sellers’ upgrades may qualify you as the buyer for CMHC’s refund.
- Apply for the Refund
- After your mortgage closes, submit an application directly to your insurer (CMHC, Sagen, or Canada Guaranty).
- Include the necessary energy certifications – usually having only one certification is enough for the refund!
- Receive Your Refund
- If approved, you’ll receive a refund of 25% of your mortgage insurance premium—potentially saving thousands!
A Quick Look at the Programs
- CMHC Green Home Program: Refunds apply to new builds, upgrades, or resale homes with seller-provided documentation of eco improvements.
- Sagen Energy-Efficient Housing Program: Covers newly built homes or those with qualifying upgrades. Learn more here.
- Canada Guaranty Energy-Efficient Advantage Program: Similar benefits for energy-efficient homes or upgrades.
Why Apply?
- Big Savings: A 25% refund on your mortgage insurance premium can put significant cash back in your pocket.
- Increased Home Value: Eco-friendly homes are more efficient and often have higher resale value.
- Greener Living: Energy-efficient homes reduce your environmental impact and lower utility bills.
Don’t Miss Out
Whether you’re buying a brand-new home, upgrading your current one, or purchasing a resale property with recent eco upgrades, these programs can help you save. Even if the seller made the upgrades, you could still be eligible for a refund with CMHC!
Have questions or want to explore how this could apply to your situation? Let’s connect and talk about how you can make the most of these savings!