Buying or building an energy-efficient home or making energy-saving renovations to your existing one can give you a more comfortable and healthier living space, while also reducing greenhouse gas emissions. And investing in energy efficiency will lower your costs for years to come!
If you paid mortgage default insurance when financing your home, you can also get a big savings boost thanks to special energy efficiency programs available from Canadian mortgage insurers. Mortgage default insurance is required when your downpayment is less than 20% and is only applicable to homes priced below $1,000,000.
Homeowners building or purchasing a qualifying energy-efficient home are eligible for either a 15% or 25% mortgage default insurance premium refund depending on the level of energy efficiency achieved. Savings can be quite substantial!
| Purchase Price | 5% down | Mortgage Amount | 4% Insurance Premium | 25% Maximum Refund |
| $350,000 | $17,500 | $332,500 | $13,300 | $3,325 |
| $500,000 | $25,000 | $475,000 | $19,000 | $4,750 |
| $750,000 | $37,500 | $712,500 | $28,500 | $7,125 |
| $900,000 | $45,000 | $855,000 | $34,200 | $8,550 |
Existing homeowners who make retrofits to improve energy efficiency can also apply for this refund by contacting the Mortgage Insurer that insured their mortgage. You’ll be required to complete an NRCan energy assessment evaluation pre and post retrofit, and you’ll need to improve your home’s energy efficiency by the required amount.
Applications are accepted from the borrower within 2 years of the closing date of the mortgage and supporting documentation must be no more than 5 years old.
Having an energy efficient home is a win for your lifestyle, the environment, and your pocketbook! If you have questions, please get in touch with the team at MiMortgage.ca at any time.
