Everything you should know about the Loan program
According to the Government of Canada, over $15 billion was invested in programs to help Canadians upgrade their homes and save on their energy bills. One of the Natural Resources Canada’s initiatives to improve energy efficiency was the Canada Greener Homes Loan Program.
Administered through the Canada Mortgage and Housing Corporation (CMHC), the program provides interest-free loans of up to $40,000, repayable over 10 years, to Canadians for the same kinds of retrofits eligible under the Greener Homes Grant program.
To qualify for the Greener Homes Loan program, a mandatory pre and post-retrofit evaluation by an energy auditor is and will continue to be a requirement under the program. According to the government, the Loan initiative has seen the most amount of uptake in Ontario, followed by Alberta, Quebec, and British Columbia, and is expected to continue to provide support to Canadians for years to come.
Program achievements in the past years
After heat pumps, the most popular retrofits supported by the Loan program have been windows and solar panels. Since 2022 CMHC has received nearly 62,000 applications across Canada, and of this number, over 53,000 Canadians have been approved for a Greener Homes Loan and received approximately $24,000 per loan on average.
Who is and who isn’t eligible
To be eligible one needs to be a Canadian citizen, permanent resident, or non-permanent resident who is legally authorized to work in Canada, must own the home (must be the primary residence), have a pre-retrofit evaluation completed on or after April 1, 2020 and have not yet had a post-retrofit evaluation.
The homeowner also must not have started the retrofits for which is seeking a loan, and a good credit history. Last, but not least, they should not be in a consumer proposal, an orderly payment of debt program, or a bankruptcy or equivalent insolvency proceeding.
You are not eligible if the retrofit:
- Has already been started or completed.
- Were not recommended in your pre-retrofit evaluation.
- Weren’t included in your application.
- Are not eligible for a Canada Greener Homes Grant.
How is the amount calculated?
Based on industry standards and market norms, the amount will depend on the retrofits selected in the application, and the quotes for the work. The maximum eligible loan amount may be less than your quoted cost, in which case you will be responsible for funding any difference.
How to apply for the Greener Homes Loan?
If you reached this paragraph, you are probably eligible for this program. Therefore, here are the main steps you need to follow, such as:
Schedule a pre-retrofit evaluation
Your house will be evaluated by an energy advisor who will analyze the space and recommend how to make it more energy-efficient and resistant to climate change. It is important to highlight that only eligible retrofits recommended by an energy advisor are eligible for the loan, which would be:
The Government of Canada website has in the links below, useful ways to find an energy advisor in your area:
Plan retrofits and get quotes from contractors
To find the best quote, a good tip is to obtain at least three quotes for each of the retrofits you are looking for. The quotes must provide a detailed summary of the costs of the work to be completed, identify any deposits required by the contractor, and include the name and contact details of the contractors completing the work. In case the maximum eligible loan amount is less than your quoted costs, you will be responsible for paying any difference.
Don’t rush though. This planning and quotation step is the right time to decide which retrofits work best for your home. To not miss the program being ineligible, do not start any work until your loan application has been submitted.
Loan application submission
To submit your application is need to go to the governmental Loan page by adding your account details. However, to do it, you must have handy:
- The pre-retrofit evaluation file number.
- A Government-issued photo identification (ID) with your address (for example, a driver’s license). If the photo ID does not show your address, you must also provide a utility bill that shows your current address.
- The property tax bill or assessment.
- Detailed quotes from contractors or a complete material and rental estimate from suppliers.
- Proof of income and employment. Two of the following documents are required:
- Most recent pay stub(s) dated within 60 days.
- Letter of employment dated within 60 days.
- Bank statement(s) showing direct deposit for the most recent two-month period.
- Most recent T4 or Notice of Assessment.
During all these processes, keep copies of all your receipts and invoices.
Post-retrofit evaluation and loan application
The post-evaluation is made by an energy advisor once all planned retrofits are complete. The professional goes to your house and provides a comparison report showing the impact of your retrofits. In this step, the energy advisor confirms which retrofits have been completed and can take up to 30 days. The service organization (energy advisor) is responsible for doing it.
After your service organization submits the results of the post-retrofit evaluation, you must sign back into the loan application portal choose “Request Funding” and upload all final invoices.
Loan amount
The government sends an email confirming the final loan amount after the funding request has been approved, which will be deposited into your bank account within approximately 10 days of funding request approval.
After your loan is funded, you will receive detailed information on the repayment of your loan over the next 10 years.
Boost your green energy by finding the best plans
In case you’re trying to find the best energy plan in your area, and have questions about your corporate energy options, you can contact us at 1-780-628-1861. Our team is prepared not only for a green energy consultation but also to support your team with documentation and reports that will make it easier for you to market renewable energy and sustainability projects.
You can visit our page to find which green energy plan is the best in your area and compare rates.
