Affordability Programs and Rebates

• Sagen Energy Efficient Housing Program

• CMHC Eco Plus

Sagen Energy Efficient Housing Program

This program rewards homebuyers who purchase energy-efficient homes or undertake energy-saving renovations, by offering a refund on their Sagen mortgage insurance premium. It encourages environmentally friendly housing choices by making them more financially accessible.

What You Get:

A refund of 25% of the Sagen mortgage insurance premium paid. This applies to all Sagen mortgage insurance products.

• Example Savings: On a $300,000 mortgage with a 95% Loan-to-Value (LTV), a standard premium of $12,000 would receive a $3,000 refund, reducing the total premium to $9,000.

Eligibility:

The premium refund is available if the property meets specific energy efficiency or greenhouse gas emission criteria, determined by one of three options:

1. Eligible Certifications: The property (new construction, existing home, or condominium) has been built or renovated and received certification from an approved energy-efficient program. This includes certifications like:

   • Built Green Canada (Gold, Platinum)

   • LEED Canada for Homes (Gold, Platinum)

   • CHBA Net Zero Energy/Ready

   • NRCan's R-2000 or ENERGY STAR

   • Passive House Canada (Certified Passive House, EnerPHit Certified Retrofit)

   • And many more listed on Sagen's website.

2. Greenhouse Gas (GHG) Emissions: The property (new or existing) falls within the top 15th percentile of lowest GHG emissions rating (tonnes/year) for its specific Heating Degree Day (HDD) zone, as determined by its NRCan EnerGuide Label.

3. Energy Consumption: The property (new or existing) has an NRCan EnerGuide rating (gigajoules/year) that is at least 20% lower than "A Typical New House."

Required Documentation (Before You Start):

Make sure you have a copy of the following, as applicable to your purchase:

• For homes built on land you owned before construction: Building permit, occupancy permit, and worksheet of construction costs.

• For homes purchased with land or a condo unit: Deed, purchase and sale agreement, and statement of adjustments on letterhead showing tax breakdown.

• For manufactured (mobile) homes bought and installed on leased land: Bill of sale and purchase and sale agreement.

• For shares in a cooperative housing corporation: Bill of sale, purchase and sale agreement, and cooperative housing corporation statement of adjustments on letterhead showing tax breakdown.

• You may also need to provide: a construction costs worksheet (if building on land you own), a relation form (if a relative will occupy the home), or a Letter of Authority Authorization Form (if someone will speak on your behalf).

Application Timeline:

You must apply within 24 months from the date of the occupancy permit (for homes built on your own land) or 24 months from the date of sale noted on your deed/bill of sale for other types of new homes/co-op shares. It typically takes 3 to 6 weeks to receive the rebate.

CMHC Eco Plus

This program offers a partial premium refund to homeowners who purchase a newly built, energy-efficient home using CMHC-insured financing. The program's goal is to encourage the purchase of climate-friendly homes by making them more affordable.

Loan Details:

You can receive a loan of up to 5% of the home's purchase price. This loan is interest-free and is repayable over a 10-year period. The loan must be used for the down payment and cannot cover financing, closing, or other related costs.

Eligibility:

This program is for homebuyers with a CMHC-insured mortgage who are purchasing a newly built home* that meets specific energy efficiency standards. The home's eligibility is determined by one of two criteria:

• Eligible Certificates: The property has been awarded a certificate from an approved third-party energy efficiency program. This includes certifications such as:

  • Built Green Canada (Gold, Platinum)

  • LEED (Gold, Platinum)

  • CHBA Net Zero Energy/Ready

  • NRCan's R-2000 or ENERGY STAR

  • Passive House Canada (Certified Passive House, EnerPHit Certified Retrofit)

  • A full list of eligible certifications is available on the CMHC website.

• Energy Consumption: The home has an EnerGuide rating (gigajoules/year) that is at least 20% lower than "A Typical New House," as assessed using the Natural Resources Canada (NRCan) EnerGuide Rating System.

*Newly built means a new home that has never been occupied. For a condominium unit, newly built means that the home must never have been occupied for residential purposes other than during a period in which the borrower assumed occupancy on an interim basis before the registration of the condominium declaration or before taking possession.

Required Documentation (Before You Start):

To apply for your refund, you will need to submit:

• A completed CMHC Eco Plus Application Form.

• The final certificate from an eligible third-party program and/or

• Your home's EnerGuide label or EnerGuide Renovation Upgrade Report (RUR), if available.

Application Timeline:

• Deadline: You must submit your application and supporting documentation directly to CMHC within 24 months (2 years) of the closing date of your mortgage.

• Processing Time: It typically takes 6 to 8 weeks for your application to be processed and for you to receive the refund.