Canada Greener Homes Loan Initiative Program
CMHC and Natural Resources Canada have announced the Greener Homes Loan Program where Canadians can apply for an interest free loan of up to $40,000 to pay for energy efficient upgrades to their home.
Greener Homes Loan Program Details:
- Maximum loan: $40,000
- Minimum loan: $5,000
- Repayment term: 10 years, interest free
- Loan type: Unsecured personal loan on approved credit.
- A maximum of one loan is available per eligible property and homeowner.
For more information on loans, province specifics, and application process, please click here.
Q: Can I use the same pre-retrofit evaluation for my grant and loan application?
A: Good question! Yes you can use the same evaluation for both your grant and loan applications, so long as it’s dated on or after April 1, 2020 and you have not commenced your retrofits. Loan applications must be completed before any retrofit work commences. You can visit the Greener Homes website to learn more about eligibility here.
Q: Is the loan secured against my home?
A: No. The loan is an unsecured personal debt obligation, which means we don’t require any collateral. You can read more about the loan on the Greener Homes website, here.
Q: Why can’t I see the button to apply to the loan in my grant portal?
A: You’ll only see the button to apply to the loan once the reports from your pre-retrofit EnerGuide home evaluation have been uploaded to the portal. You can login to the portal to view the status of your application or retrieve documents at any time by clicking here.
Q: How much money can I get through a loan?
A: The minimum loan available is $5000, and up to a maximum of $40,000 interest-free. The actual amount will depend on the retrofits you plan to undertake on your home. You can read more about what’s covered on the Greener Homes website, here.
Q: What if the loan doesn’t cover all of my expenses?
A: Good question! There’s a chance that not all of your expenses will be covered by the loan, and you’ll be responsible for paying these costs yourself. Before you apply, we suggest you take a look at what’s eligible so you can plan accordingly. You can view eligible products here.
Q: Who is eligible for the loan?
A: To apply for the loan, you’ll need to apply and get approved for the grant, first. You’ll also need to meet some additional borrower and property eligibility criteria to make sure you’re able to repay the loan. It’s important that you haven’t started the work until you’ve been approved for the loan, otherwise you will no longer qualify. For more information, visit the Greener Homes website, here.
Q: Can I add new retrofits to my application if I’ve already signed a loan offer?
A: Once your loan agreement has been signed, the amount cannot be increased. That’s why we suggest you take your time to review the recommendations from your energy advisor and plan your retrofits carefully before submitting an application. For more information, visit the Greener Homes website, here.
Q: Can I apply for the loan more than once?
A: Yes, If you sell your primary residence, you can apply for the loan one additional time on your new primary residence, so long as your previous loan has been paid in full and you have re-applied and been approved for the grant program. For more information, visit the Greener Homes website, here.
Q: If part of my primary residence is used for business, can I still apply for the loan?
A: The answer is yes, so long as 50% of the space is deemed residential. However, the loan will only cover eligible costs for retrofits completed on the residential portion of your property. For more information, visit the Greener Homes website, here.
Q: If I own several properties, can I obtain a loan for each property?
A: The answer is, no. You can only receive a loan for your primary residence and you’ll need to show proof of ownership as part of your application. For more information, visit the Greener Homes website, here.
Q: What costs are eligible for the loan?
A: You can only receive funding through the loan for costs directly associated with the retrofits recommended by your energy advisor. They must also be found on the Greener Homes website’s approved list of products and installations, here.
Q: How would I repay the loan?
A: You’ll need to start repaying the loan in equal monthly installments, starting on the 1st of the second month after you get the money. For example, if you get your loan on January 10th, your first payment is due on March 1st. For more information, visit the Greener Homes website, here.
Q: Can I repay my loan faster?
A: Absolutely! Once you start repaying your loan, you’ll have the ability to make full or partial payment at any time without penalty. For more information, visit the Greener Homes website, here.
Q: When will I get my loan money?
A: You can only receive the funds from your loan after you’ve completed your retrofits, received a post-retrofit EnerGuide evaluation, uploaded all your documentation, and requested your loan disbursement through the online portal. For more information, visit the Greener Homes website, here.
Q: Can I get an advance payment for my loan?
A: Absolutely! You can receive an initial loan advance up to a maximum of 15% of your eligible costs, so long as it’s used to cover upfront expenses, such as your contractors’ deposits. You’ll need to upload proof of these expenses in your request for an advance. For properties located in northern and off-grid communities and for Indigenous group applicants, this amount is increased to 25%. For more information, visit the Greener Homes website, here.
Q: If I do the work myself, is it still eligible for the loan?
A: Good question! In short, it depends. Specific retrofits, such as installing mechanical and electrical systems, need to be done by a licensed professional. However, there are other eligible retrofits, like a thermostat, that you can install yourself. For more information, visit the Greener Homes website, here.
Q: How much time do I have to complete the work once I have been approved for the loan?
A: You have 12 months, following the date of the loan agreement, to complete the retrofits, obtain the results of the post-retrofit evaluation and request your final loan advance. For homeowners in Northern or off-grid communities, the timeline to complete the work is extended to 24 months. For more information, visit the Greener Homes website, here..
Q: How long do I have to repay the loan?
A: You have 10 years to repay the loan once you’ve been approved and signed an agreement.