Climate change is all over the news these days! It’s easy to imagine that all of us in Brampton and the GTA are too small and insignificant to make any kind of impact, but the truth is doing many little things every day adds up. You can certainly help by ensuring your home is as energy efficient as possible, and you can get rewarded for doing so!
When you buy or build an energy-efficient home or make energy-saving renovations to your existing home, you’ll enjoy a more comfortable and healthier living space, while also reducing your home’s greenhouse gas emissions. Investing in energy efficiency will also lower your energy costs for years to come!
If you paid mortgage default insurance when financing your home, you can get a big savings boost thanks to a special energy efficiency program available through Canadian mortgage insurers. Mortgage default insurance is required when your downpayment is less than 20 percent and is only applicable to homes priced below $1,000,000.
A 15 or 25 percent mortgage default insurance premium refund is available if your bought or built a qualifying energy-efficient home. Whether you receive 15 or 25 percent depends on the level of energy efficiency achieved. Savings can be quite significant!
| Purchase Price | Downpayment | 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 | $50,000 | $700,000 | $28,000 | $7,000 |
| $900,000 | $65,000 | $835,000 | $33,400 | $8,350 |
If you want to complete the necessary retrofits to improve your current home’s energy efficiency, you can apply for this refund by contacting the mortgage insurer that insured your mortgage. If you aren’t sure which insurer was used, I can help. Applications are accepted within two years of the closing date of your mortgage and supporting documentation must be no more than five years old. You’ll need to have an NRCan energy assessment evaluation completed before and after you retrofit, and you’ll need to improve your home’s energy efficiency by the required amount.
Having an energy efficient home in Brampton and the GTA is a win win win – for your lifestyle, the environment, and your pocketbook! If you have questions on this great program or on anything relating to home financing, please get in touch at any time. I’m always here to help!
