Save on your CMHC mortgage insurance premium.
Buyers who apply for a mortgage are required to obtain CMHC mortgage insurance if they do not have a down payment of at least 20% of the total value of the home they wish to purchase.
For example, a person who buys a $250,000 home with a 5% down payment ($12,500) will have to pay approximately $8550 in mortgage default insurance*, a considerable amount.
However, in order to encourage the purchase of energy efficient homes, CMHC offers a premium rebate of 15% to 25%. In the above case, the reimbursement would be a minimum (15%) of 1282,50$.
Novoclimat 2.0 certified homes are automatically eligible for a 15% rebate of the premium.
To qualify, other homes must be evaluated by one of our advisors to determine the EnerGuide rating. The premium is then calculated based on the rating using one of two EnerGuide scales: the 0 to 100 scale or the gigajoule (GJ) per year scale.
Source of tables: CMHC Eco Plus website
You may also be able to participate in this program if you are purchasing or refinancing an existing home and renovating it to improve its energy efficiency.
To do this, the home must be evaluated by one of our advisors to establish the EnerGuide rating before and after the work (two separate visits). The premium refund is then determined according to the following table:
Table source: CMHC Eco Plus website
Note that in Quebec, the EnerGuide rating is used in the Rénoclimat program. You can therefore obtain your rating by participating in Rénoclimat. In addition, you may be able to get financial assistance for your energy efficiency retrofit. The combination of programs Renoclimat and CMHC Eco Plus could then prove to be very interesting.
Were you thinking of investing in a rental property?
CMHC’s APH Select program allows rental property owners to obtain mortgage loan insurance relief for the construction, purchase or refinancing of multi-family residential buildings of 5 units or more.
To verify your eligibility and to consult all the information concerning the CMHC Eco Plus program, go to the CMHC WEBSITE .
* Based on a 25-year amortization period.
Calculated using the CMHC premium calculator