Greener Homes Loan Program2022-06-22T15:32:58+00:00

Greener Homes Loan Program

The Federal Government has rolled out the Greener Homes Loan Program, an interest-free loan program providing Canadian Homeowners with up to $40,000 to make energy-efficient upgrades to their homes including solar panels, heat pumps, insulation, windows, and more.

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About the Updated Program

The Canadian Mortage and House Corporation (CMHC) is providing Canadian homeowners with up to $40,000 in interest-free loans for home-energy retrofits and upgrades. The interest-free loan program is an extension of the existing Canada Greener Homes Grant, which offers Candian homeowners up to $5,600 for energy-efficient upgrades, with this updated program, the CMHC is offering interest-free loans to help pay for energy upgrades including solar panel systems, heat pumps, insulation, windows, and more on top of the $5,600 provided in the existing program.

Top Available Upgrades

heat pumps

air sealing

renewable energy

hot water

windows + doors

insulation

view more upgrades

Commonly Asked Questions

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.

Thanks for reaching out! And, no. The loan is an unsecured personal debt obligation,  which means we don’t require any collateral.

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 log in to the portal to view the status of your application or retrieve documents at any time:  

canada.ca/greener-homes-portal 

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.

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: canada.ca/greener-homes-eligible-products

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.

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 Homesol Energy Advisor and plan your retrofits carefully before submitting an application.
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.
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.
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.

You can only receive funding through the loan for costs directly associated with the retrofits recommended by your Homesol Energy Advisor.

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.
Absolutely! Once you start repaying your loan, you’ll have the ability to make full or partial payments at any time without penalty.
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.

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%.

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.

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.

You have 120 months to repay the loan once you’ve been approved and signed an agreement.

The Process

Energy Evaluations

The first step is to schedule an Energy Evaluation with Homesol Building Solutions. Homesol will conduct two EnerGuide home evaluations to determine what possible upgrades you would need and which ones you can qualify for. Upon completion of the evaluations, you take the recommendations to invest in upgraded equipment which the grant will cover.

Application

The second major step in the process is to apply for the Canada Greener Homes Grant after scheduling your first Energy Evaluation. We can help you with the application. Once you go through the application process, Homesol will perform the prior and post-retrofit Energy Evaluation for your home under the program.

Rebates

Any upgrades recommended by your Homesol Energy Advisor are eligible for a rebate of 20% to 100% of the cost of the renovation to a maximum of 5000 dollars. In addition, if any upgrade is completed, you will receive up to 600 dollars to cover the cost of the energy evaluations.

ELIGIBLE UPGRADES

Reducing the volume of conditioned air leaking out of your house is the single most important retrofit to improve energy efficiency and should be a primary consideration in conjunction with all other retrofit strategies.

  • Meet the target in your Renovation Upgrade Report (RUR): $550
  • Reach 10% better than air leakage target in your RUR (0.9 x target value): $810
  • Reach 20% better than air leakage target in your RUR (0.8 x target value): $1,000

While considering the Air-tightness of your home you should also consider mechanical ventilation. Enthalpy/Energy Recovery Ventilators (ERV’s) and Heat Recovery Ventilators (HRV’s) are like the lungs of the house. You can also think of them as fresh air machines or automatic windows with filters!

If your house feels stuffy, has lingering smells, or has relatively high humidity levels in the fall and winter, your home does not receive adequate ventilation. If any occupants have respiratory conditions such as asthma, bronchitis, or chronic colds, getting fresh air is even more important.

As your air-tightness improves below 4 ACH (Air Changes per Hour) or 0.35 Natural ACH, and/or you are planning on reducing this further towards 0 ACH, it is extremely important to install a ventilation system with heat recovery. These systems are now mandatory in the Ontario Building Code for new homes.

Mechanical ventilation gives the homeowner control of the quality of household indoor air rather than having the weather dictate the ACH rate in various parts of the house. It increases heating efficiency and comfort while improving indoor air quality.

Insulate a minimum of 20% of the total area of your attic or ceiling. Grant is affected by the percentage of your attic improved.

Increase 100% of your attic to R-50

  • From R-12 and less: $1800
  • From R-12 to R-25: $600
  • From R-25 to R-35: $250

Increase 100% of your flat or cathedral roof to R-28 

  • From R-12 and less: $600
  • From R-12 to R-25: $250

Increase 100% of your flat or cathedral roof to R-20 from nothing: $600

Insulate a minimum of 20% of your exterior wall area. Excluding foundation walls.

  • Grant is affected by the percentage of your wall area improved
  • Increase 100% of your wall area by R-7.5 to R-12: $3300
  • Increase 100% of your wall area by R-12 to R-20: $3800
  • Increase 100% of your wall area by > R-20: $5000

Insulate the entire exposed floor area (minimum of 11 m2 or 120 ft).

  • Increase insulation by R-20: $350

Insulate a minimum of 20% of the wall area of the foundation, including basement and crawlspace walls.

  • Grant is affected by the percentage of your well area improved.
  • Basement and crawlspace combined have a maximum of $1,500
  • Seal and insulate at least 80% of the entire basement header to increase by a minimum of R-20: $240
  • Seal and insulate at least 50% of your entire basement slab by a minimum of R-3.5: $400
  • Increase 100% of your wall area by R-7.5 to R-22: $1050
  • Increase 100% of your wall area by > R-22: $1500

Basement and crawlspace combined have a maximum of $1,500

  • Increase 100% of your wall and header area by R-10 to R-22: $1040
  • Increase 100% of your wall and header area by > R-22: $1300
  • Increase 100% of your ceiling area by > R-24: $800

The equipment must be on an NRCan eligibility list here. This list should be consulted with your window manufacturer or supplier. Here are the lists for the windows, sliding glass doors, hinged doors, sidelites and transoms.

  • Maintain the ENERGY STAR labels on your windows and doors until after your post-retrofit evaluation.
  • A maximum of $250 per rough opening* up to a cap of $5000.
  • *A rough opening is the structural framing in a wall separating a heated from unheated space that creates an opening for the installation of a window or door. For example, a bay window with three window units installed into one rough opening is eligible for only one grant.
  • $125 per window or sliding glass door requires:
  • U-Value of 1.22 W/m²K or less or Energy Rating ≥ 34
  • $250 per window or sliding glass door requires:
  • U-Factor of 1.05 W/m²K or less or Energy Rating ≥ 40
  • $125 per door, with or without sidelites or transoms:
  • U-Factor ≤ 1.22 W/m²K or Energy Rating ≥ 34

All system’s capacity must be ≤ 40kW.

Install a Ground Source Heat Pump – full system: $5,000

Open Systems

  • Heating COPh ≥ 3.6 with 10°C entering water
  • Cooling COPc ≥ 4.75 with 15°C entering water

Closed Loop Systems

  • Heating COPh ≥ 3.1 with 0°C entering water
  • Cooling COPc ≥ 3.93 with 25°C entering water

Product eligibility list

Replace a Ground Source Heat Pump – pump unit only: $3,000

Open Systems

  • Heating COPh ≥ 3.6 with 10°C entering water
  • Cooling COPc ≥ 4.75 with 15°C entering water

Closed Loop Systems

  • Heating COPh ≥ 3.1 with 0°C entering water
  • Cooling COPc ≥ 3.93 with 25°C entering water

Product eligibility list

Heat pump must be listed here: ground source heat pump–pump equipment

Important to Note:

Upgrades must be on the NRCan eligible list of products in order to be eligible for reimbursement.

IMPORTANT FOR HEAT PUMPS: Licensed and trained professionals are needed to design systems that will distribute heat to the entire home (not just some rooms or additions). The heating system requirement does “not necessarily need to be based on peak-load heating” or “100% of the peak heating load”.

The specific system needs to be determined in consultation with the mechanical contractor and a sizing guide tool, such as the one offered by Natural Resources Canada. The design should account for the anticipated heat requirements based on planned energy efficiency upgrades to the building envelope (such as insulation, windows or air sealing upgrades) in order to avoid oversizing the unit as they can have a significant impact on the heating load requirements of the house.

New or replacement ‘Ductless with 2 indoor heads’ Air source heat pump (ASHP) or Cold Climate Air Source Heat Pumps (ccASHP): $2,500

The newly installed system must meet the following criteria:

  • Minimum total rated heating capacity at 8.3°C of 3.52kW (12,000 Btu/h)
  • HSPF (AHRI Climate Region Zone IV) ≥ 10
  • Two indoor heads ductless unit
  • Your new pump must be on the list of eligible products
  • Quebec and Nova Scotia residents: Your new pump must be on this list of eligible products

In addition, the cold climate air source heat pump (ccASHP) system must also meet the following criteria:

  • Compressor must be variable capacity with three or more distinct operating speeds or continuously variable speed
  • COP of ≥ 1.8 at -15°C (5°F) (at maximum capacity operation);
  • Capacity Maintenance (Max -15°C (5°F)/Rated 8.3°C (47°F)) ≥ 70%

New or replacement ‘Central Ducted or Ductless with 3 heads’ Air source heat pump (ASHP): $4,000

The newly installed system must meet the following criteria:

  • Minimum total rated heating capacity at 8.3°C of 3.52kW (12,000 Btu/h)
  • HSPF (AHRI Climate Region Zone IV) ≥ 10
  • Central ducted system or a minimum of three indoor heads for ductless units
  • Your new pump must be on this list of eligible products (not available for Quebec or Nova Scotia residents)

Note: For central ducted systems, if part of the cold climate air source heat pump listed systems, the furnace or air handler must always be the specified matching unit.

New or replacement ‘Central Ducted or Ductless with 3 heads’ Cold Climate Air Source Heat Pumps (ccASHP): $5,000

The newly installed system must meet the following criteria:

  • Compressor must be variable capacity with three or more distinct operating speeds or continuously variable speed
  • Minimum total rated heating capacity at 8.3°C of 3.52kW (12,000 BTU/h)
  • HSPF (AHRI Climate Region Zone IV) ≥ 10
  • Central system or a minimum of three indoor heads for ductless
  • COP of ≥ 1.8 at -15°C (5°F) (at maximum capacity operation);
  • Capacity Maintenance (Max -15°C (5°F)/Rated 8.3°C (47°F)) ≥ 70%
  • Your new pump must be on the list of eligible products
  • Quebec and Nova Scotia residents: Your new pump must be on this list of eligible products

Note: For central ducted systems, if part of the cold climate air source heat pump listed systems, the furnace or air handler must always be the specified matching unit.

Important to Note:

Upgrades must be on the NRCan eligible list of products in order to be eligible for reimbursement.

IMPORTANT FOR HEAT PUMPS: Licensed and trained professionals are needed to design systems that will distribute heat to the entire home (not just some rooms or additions). The heating system requirement does “not necessarily need to be based on peak-load heating” or “100% of the peak heating load”.

The specific system needs to be determined in consultation with the mechanical contractor and a sizing guide tool, such as the one offered by Natural Resources Canada. The design should account for the anticipated heat requirements based on planned energy efficiency upgrades to the building envelope (such as insulation, windows or air sealing upgrades) in order to avoid oversizing the unit as they can have a significant impact on the heating load requirements of the house.

Your new water heater must be on the list of eligible products

Replace your domestic water heater with an ENERGY STAR certified domestic heat pump water heater: $1,000

Energy efficiency performance and installation

  • Capacity ≤ 55 gal
    • EF ≥ 2.00 with FHR ≥ 50 gallons per hour or UEF ≥ 2.00 FHR ≥ 45 gallons per hour
  • Capacity > 55 gal
    • EF ≥ 2.20 FHR ≥ 50 gallons per hour or UEF ≥ 2.20 FHR ≥ 45 gallons per hour

Important to Note:

Upgrades must be on the NRCan eligible list of products in order to be eligible for reimbursement.

IMPORTANT FOR HEAT PUMPS: Licensed and trained professionals are needed to design systems that will distribute heat to the entire home (not just some rooms or additions). The heating system requirement does “not necessarily need to be based on peak-load heating” or “100% of the peak heating load”.

The specific system needs to be determined in consultation with the mechanical contractor and a sizing guide tool, such as the one offered by Natural Resources Canada. The design should account for the anticipated heat requirements based on planned energy efficiency upgrades to the building envelope (such as insulation, windows or air sealing upgrades) in order to avoid oversizing the unit as they can have a significant impact on the heating load requirements of the house.

The system must be composed of photovoltaic (PV) panel and inverter certified to CSA Standards

  • The rated PV panel must have a peak power capacity higher than or equal to 1.0 kW
  • Install solar panels (photovoltaic (PV) system) ≥ 1.0 kW
  • $1,000 per kW (up to a maximum of $5,000)

COMPLEMENTARY REBATES

  • Must be combined with other retrofit measures from the Canada Greener Homes Grant (Excluding Space Heating).
  • All equipment must be purchased in Canada.
  • Online purchases are only eligible if they are ordered from an online distributor in Canada.
  • Replace a manual (single setting) thermostat with a programmable or smart/adaptive thermostat: $50
Must be combined with an energy efficiency retrofit from the Canadian Greener Homes Grant.

Type of MeasureAmount $
Batteries connected to Photovoltaic systems to provide standby power for home$1,000
Roofing Membrane – self-adhering roofing underlayment applied to the entire roof$150
Foundation waterproofing$875
Moisture proofing crawl space floor, walls and headers (100%)$600

Homeowners living in a small MURB must ensure they meet all eligibility requirements for the Canada Greener Homes Grant in addition to the following requirements:

  • A single EnerGuide evaluation must be undertaken of the entire structure (or address) and not on a unit by unit basis. Homeowners within the MURB need to organize themselves (by way of condo board) in such a way that all homeowners are aware that evaluation has taken place.
  • Retrofits in a small MURB must be agreed to by the person or persons able to make decisions about the renovations to the building.
  • For small MURBs that are owned by one person and the remaining units are rented, the owner must live within the building as their primary residence. The maximum amount of incentive that can be given in this case is $5,000.
  • The small MURB must have 50% of its total area, including the basement, as a residential living space.
  • The building must be habitable all year

The maximum amount that a MURB and its Homeowners can receive is $20,000.

Calculating incentives

The maximum amount that a MURB and its Homeowners can receive is $20,000.

The maximum allowable amount for building envelope measures – adding insulation and/or air sealing – in small MURBs will be calculated based on the number of units within the building. The table below provides the multiplier amount.

Number of units in MURB2-34-67-910-1213-1617+
MURB Multiplier1.01.52.02.53.04.0

For example, a MURB having 9 units claiming amounts for both air sealing and exposed floor insulation would be calculated as follows:

(Air-sealing Maximum $1,000 x 2.0 = $2,000) + (Exposed floor $350 x 2.0 = $700) = $2,700

Reimbursements for building envelope measures must be claimed by one MURB homeowner only and cannot be split.

If the airtightness test cannot be performed during the energy evaluation of the building, small MURBs are not eligible.

MURBS can apply the multiplier to:

  • Home insulation
  • Air sealing
  • Windows and doors
  • Renewable energy
  • Resiliency measures

MURBS are not eligible for:

  • Heat pumps or domestic water heaters (including in northern and off-grid communities) as the equipment on the eligible products list are not suitable for space heating in larger buildings
  • Thermostats are not eligible for the multiplier

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