Canada Greener Homes Loan

Canada Greener Homes Loan

The Canada Greener Homes Loan program is an initiative by Natural Resources Canada designed to help Canadian homeowners make their homes more energy-efficient and environmentally friendly. The program offers interest-free loans to finance eligible retrofits recommended by an energy advisor, contributing to the overall goal of reducing greenhouse gas emissions and improving energy efficiency across the country.

Key Features:
  • Loan Amount: Homeowners can receive a loan ranging from $5,000 to $40,000.
  • Repayment Term: The loan is to be repaid over a period of 10 years, interest-free.
  • Loan Type: Unsecured personal loan on approved credit.
  • One Loan per Property: Only one loan is available per eligible property and homeowner.
Eligibility Requirements:
  • Applicants must be Canadian citizens, permanent residents, or legally authorized to work in Canada.
  • The home must be owned by the applicant and serve as their primary residence.
  • A pre-retrofit evaluation must be completed on or after April 1, 2020, and retrofits must not have started before the loan application submission.
  • Applicants must have a good credit history and not be involved in any insolvency proceedings.
  • Specific criteria apply for low-rise multi-unit residential buildings, Indigenous group applicants, and residents of northern and off-grid communities.
Application Process:
  1. Pre-Retrofit Evaluation: Schedule an evaluation with a service organization to receive recommendations for energy-efficient retrofits.
  2. Planning and Quotes: Plan your retrofits based on the evaluation and obtain detailed quotes from contractors.
  3. Loan Application: Submit your loan application with all required documentation, including quotes, pre-retrofit evaluation file number, proof of identity, property tax bill, and proof of income.
  4. Retrofit Completion: After approval, complete the recommended retrofits. Keep all receipts and invoices.
  5. Post-Retrofit Evaluation: Request a post-retrofit evaluation to verify the completed work.
  6. Final Loan Advance: Submit a request for the final loan advance and upload all final invoices.
  7. Loan Disbursement: Receive the final approved loan amount in your bank account.
  8. Repayment: Repay the loan over a 10-year period as per the repayment schedule provided.
Additional Information:
  • Up to 15% of the loan can be delivered upfront to cover contractor deposits, with an increased advance of up to 25% for properties in the North or off-grid.
  • The program includes special provisions for northern and off-grid communities due to higher costs in these areas.
  • DIY retrofits are permitted but must adhere to specific guidelines, and personal labor costs are not eligible.

The Canada Greener Homes Loan program aims to support homeowners in making sustainable improvements to their homes, ultimately contributing to Canada’s environmental goals and enhancing the comfort and energy efficiency of residential properties.

For more detailed information and to apply, visit the Canada Greener Homes Loan page.

Frequently Asked Questions

Yes, the loan and its performance will be reported to the credit bureau.

  1. The “Financial Incentives by Province” page on the Natural Resources Canada website provides a comprehensive list of energy efficiency incentives available across different provinces and territories in Canada. These incentives are offered by provincial and territorial governments, major Canadian municipalities, and major electric and gas utilities.
  2. The Sustainable Affordable Housing initiative, delivered through the Green Municipal Fund (GMF), provides $300 million to support local affordable housing providers in retrofitting existing units or constructing new, energy-efficient affordable housing. The program offers funding for planning, studies, pilot projects, and capital projects, aiming to reduce energy costs and greenhouse gas emissions while improving the quality of life for residents.
  3. The CMHC Eco Plus program offers a 25% partial premium refund on CMHC mortgage loan insurance for homeowners buying or building an energy-efficient home. The program encourages sustainable housing by reducing energy costs and housing’s environmental impact. Homeowners can apply for the refund within two years of their mortgage closing date by meeting eligible energy-efficient standards and submitting an application with the necessary documentation.

The Natural Resources Canada page provides a comprehensive guide on making homes more energy-efficient, emphasizing the benefits of retrofitting both new and older homes to save money and improve comfort.

Have any questions? We are always open to talk about your home renovations, new projects, and how we can help you with improving energy efficiency.