If you recently bought a property with less than 20% as down payment you paid a default insurance premium. Luckily the major insurers in Canada, Canada Mortgage and Housing Corporation (CMHC), Genworth, and Canada Guaranty have programs that pay you back for your energy efficient property.
These programs were introduced to encourage Canadians to make energy-efficient choices by making the purchase of energy-efficient home or energy-saving renovation more affordable. These programs include up to a 25% refund on your mortgage loan insurance premium.
For example, if you purchase a property for $500,000 with 5% as down payment, your mortgage loan insurance premium would be $20,187. If you qualify for the full 25% refund you would get back $5,047 back.
There is a simple way to apply for these programs. **Please see useful links below for the application process.
- Depending on your insurer will need your mortgage insurance reference number. You can find this on your mortgage commitment from your lender.
- You will also need either a NRCan energy evaluation file number or Energy-Efficient Building Program certificate. *For high rise buildings you will need a letter signed by the project engineer, builder / developer or Natural Resources Canada (NRCan).
You must claim the refund within 24 months of the purchase of your property or home improvement. Both programs have more specific details for the different types of energy efficient properties and renovations. Your documentation can not be older than 5 years. Please see the links below for more information.