As we push toward a greener future, you may find yourself wondering how you can make your home more energy efficient and environmentally friendly. Opportunely, there’s a new interest-free loan we should discuss today!
The Canada Greener Homes Loan, offered cooperatively with the Canada Greener Homes Grant, is a new way of supporting Canadian homeowners to reduce their property’s environmental footprint. It offers interest-free financing to help you complete some of the more major retrofits recommended by your energy advisor, creating a more efficient and comfortable home for you and your family.
Loan details
Maximum: $40,000
Minimum: $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.
The loan can only help you finance eligible products and installations that are part of a retrofit that is both recommended by an energy advisor and eligible for the grant.
To begin work in your home, a portion of the loan can be delivered to you up front. Contractors often require a down payment for these types of projects. The balance of the loan will be delivered upon successful completion of the retrofits, and verification through a post-retrofit evaluation.
Eligibility
As of June 17, 2022 – The Canada Greener Homes Loan is open to:
Eligible applicants who are applying to Canada Greener Homes Grant.
Active applicants at the pre-retrofit EnerGuide evaluation stage with the Canada Greener Homes Grant.
As of August 31, 2022, The Canada Greener Homes Loan will open to:
Homeowners who have already received a grant or requested a post-retrofit EnerGuide evaluation under the Canada Greener Homes Grant and want to apply for any remaining eligible retrofits they are interested in and have not yet started.
There are a few eligibility requirements to meet before applying for the loan:
You must be a Canadian homeowner and your home must be your primary residence
You have completed pre-retrofit evaluation of your home dated April 01, 2020 or later
You have a good credit history and aren’t under:
- a consumer proposal
- an orderly payment of debt program
- a bankruptcy or equivalent insolvency proceeding
You will be asked to share financial information to demonstrate that you have the financial capacity to repay the loan.
This loan does not apply to the following work:
- work that you’ve already started or completed
- retrofits that haven’t been recommended by an energy advisor
- retrofits that are not eligible for a Canada Greener Homes Grant
- retrofits that aren’t included in your application
Low-rise Multi-Unit Residential Buildings (MURBs)
Individual homeowners living in a low-rise MURB must meet the additional eligibility criteria for MURBs outlined in the Canada Greener Homes Grant.
Indigenous group applicantsFootnote 1
- You are eligible to register multiple homes
- You must own the home(s) or have a formal partnership to represent the owners, but the homes do not need to be the owner’s primary residence
- Your home must be occupied by an Indigenous household
- You must select at least one eligible retrofit for each property subject to the loan
How to Apply:
1. Apply to the Canada Greener Homes Grant
Check your eligibility and submit an application to the Canada Greener Homes Grant. In order to apply for the loan, you must be eligible for the grant.
2. Get a pre-retrofit EnerGuide evaluation
A service organization will reach out to schedule a pre-retrofit EnerGuide evaluation of your home with an energy advisor. They will evaluate your home and make recommendations on how to make it more energy efficient and resistant to climate change.
Only retrofits that have been recommended by an energy advisor and are from the grant’s list of eligible retrofits and installations are eligible for the loan.
3. Plan your retrofits and get quotes from contractors
Review the report’s recommendations and decide which retrofits work best for your budget and renovation plans. Speak with contractors and get at least 1-3 quotes for each of the retrofits in your plan.
You can’t ask for a bigger loan if you decide to do more retrofits later, so it’s important to plan your work in advance before applying for the loan.
4. Submit an application to the loan
Log in to your Canada Greener Homes Grant account and click on the button to access the loan portal. To submit your application, you will have to upload documentation to the loan portal, such as:
- your property tax statement
- your driver’s license or other government issued ID together with a utility bill
- a confirmation of income and employment (for example, a job letter or a T4 slip)
- your quotes from contractors
Based on your application, the program will calculate the maximum loan amount you are approved for. To activate your loan offer, you will be asked to carefully review the information and accept the Loan Agreement.
Upfront Costs
You can access a portion of your loan funds in advance to pay for upfront costs, such as paying a deposit to your contractor. You can request the advance on your loan during your application by demonstrating that an upfront payment is required. You can do that by uploading the quotes you received from contractors and by entering the deposit amounts required to do the retrofit.
5. Complete your retrofits and keep receipts and invoices
Start your work and make sure to keep copies of all your receipts and invoices along the way.
6. Get a post-retrofit EnerGuide evaluation
Once the retrofits are complete, contact your service organization to request a Post-Retrofit EnerGuide evaluation. An energy advisor will evaluate the impact of your improvements and provide you with an updated EnerGuide label and a new report that estimates how much you can receive for your grants.
7. Receive your loan amount
The energy advisor will update the information related to your final evaluation in the grant portal including the estimates of your final grant amount. You will also have to upload all your final invoices/receipts to the grant portal and receipts for the retrofits to the loan portal. The loan amount will be reviewed again based on the actual cost of the completed retrofits, less the recommended grant amount.
- If the actual costs of the completed retrofits are lower than the initial cost estimates, it will be adjusted downwards.
- If the actual costs are higher than the initial cost estimate, it will not increase.
The final approved loan amount will be deposited into your bank account (less the initial advance, if you received one) within 10 days.
8. Repay your loan over time
You will receive detailed information on the repayment of your loan over the 10-year period.
It may sound complicated, but we can make it easy. Give us a call today or submit a question on our Contact Us page. We look forward to hearing from you!