Canada Mortgage and Housing Corporation (CMHC) has created two new programs that I want to share with you today. Eligible homeowners can receive partial refunds on their mortgage insurance premiums when buying or upgrading energy-efficient homes.
If you’re in the process of purchasing or renovating a home, let’s dive into the CMHC eco programs and how they help you save significantly.
CMHC Eco products are incentives tied to CMHC-insured mortgages that reward energy-efficient housing. Depending on your situation, you could qualify for a premium refund of up to 25% of your CMHC mortgage insurance.
There are two options for the CMHC eco products.
Both programs are designed to make energy-efficient housing more accessible while helping Canadians reduce long-term energy costs.
The first option, CMHC eco plus, is intended for buyers who are purchasing a new or already energy-efficient home. If the property meets recognized energy-efficiency standards, a partial refund may be possible on your mortgage insurance premium.
To qualify, your mortgage must be CMHC-insured, and you must submit your application within 24 months of your mortgage closing.
For buyers who are already considering a newer or energy-efficient property, Eco Plus is a straightforward way to reduce overall mortgage costs. If you’re a current client of mine and are interested in this program, please reach out to me today. I can guide you on your next steps to access this refund.
If you’re purchasing an older home with plans to upgrade it, CMHC eco improvement is most likely your best option.
This program is for the homeowners who complete specific energy-efficiency renovations after taking possession of their property.
To be eligible, the mortgage must be CMHC-insured, and the improvements typically need to total at least $20,000 across these key energy-saving categories:
Homeowners must complete and pay for the work and submit their application within 24 months of closing.
This program works well for buyers who are planning to renovate, even before purchasing the home.
Why do these programs matter?
Energy efficiency carries particular value across Canada. With hot summers, cold winter nights, and rising utility costs, homes that perform efficiently can deliver noticeable monthly savings and improved year-round comfort.
Beyond the immediate financial benefit, energy-efficient homes are attractive to future buyers. This means improvements made today support both short-term affordability and long-term value.
As your mortgage broker, I can guide you through the full application process. But it generally follows a clear path that I’ve hinted at above.
To start, we have to confirm that your mortgage is CMHC-insured. This is determined during the approval process, depending on what you choose and have for a down payment.
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From there, you will need the required energy evaluation or certification. Then you’ll have to complete any qualifying upgrades before applying for the eco improvement program option.
Once the work is done, you gather your documentation and submit the application within the 24-month window. Missing this deadline is one of the most common reasons why someone isn’t eligible.
This means that planning is key and beginning those renovations immediately after closing.
Are CMHC eco improvements worth it?
If renovations can be completed within the first 2 years, this program delivers meaningful value to homeowners. Since the potential refund can reach up to 25% of your insurance premium, the savings can add up to thousands of dollars. With those savings, plus the ongoing energy savings, it can make a lot of financial sense to move forward with this program.
CMHC eco plus and eco improvement remain two of the most underused opportunities available to Canadian homebuyers. But I’m changing that for my clients!
Whether you’re purchasing an energy-efficient new build or upgrading an older property, these programs reward eco-friendly decisions.
If you’re unsure whether your purchase or renovation would qualify, Mortgage Okanagan can help you review the details and identify every available rebate opportunity.
If you’re ready to get started on your mortgage and either of these CMHC Eco Improvement programs, reach out to me today. Give me a call at 250-826-3111, apply on my website or contact me through my online contact form to start the process.
Let’s get your application off the ground.
