Energy-Efficient Advantage

Energy-Efficient Program

Energy-Efficient Advantage Program

To support initiatives that promote environmental consciousness and its ongoing protection, we are pleased to offer a 25% premium refund on the Canada Guaranty mortgage insurance premium paid for qualified borrowers purchasing an energy-efficient home or making energy-efficient upgrades.

Please note that the updated eligibility criteria are effective for all mortgage insurance applications submitted on or after June 20, 2022.

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Program Overview

Qualified borrowers who purchase an energy-efficient home or make energy-efficient home improvements may be eligible to receive a 25% premium refund.

Transaction Types

  • Applicable to all Canada Guaranty mortgage insurance products.
  • Purchase: New Construction or Existing Home.
  • Purchase with improvements for energy-efficiency purposes.

Borrower Qualifications

  • Mortgage financing must be insured through Canada Guaranty.
  • Canada Guaranty must receive all original mortgage insurance premiums and applicable fees prior to issuing the partial premium refund.
  • Partial premium refund applications must be submitted within 24 months of the mortgage closing date.

Premium Refund Process

  • Once all required criteria are met, Canada Guaranty will refund the borrower the approved percentage of the standard mortgage insurance premium (including applicable provincial sales tax).
  • Refunds are processed and mailed directly to the homeowner within 30 business days of receiving the partial premium refund application.

Mortgage Insurance Premium Refund Example (25%)

$475,000 Mortgage at 95% LTV Premium Payable*
Standard Premium Amount (95% LTV = Premium rate of 4.00%)
Energy-Efficient Premium Refund (25% of premium amount)
Total New Premium (minus refunded amount)
$19,000.00
($4,750.00)
$14,250.00
*For the purpose of this example, the mortgage insurance premium does not include any applicable provincial sales tax.

 

PREMIUM REFUND ELIGIBILITY 


All applicable and required documentation must be submitted together with the completed premium refund application form. In addition to satisfying all borrower qualifications, to be eligible for a 25% premium refund, the insured property must meet one of the following three energy-efficient and/or greenhouse gas emissions verification requirements.

  1. Property meets eligible certification criteria: Please see the “Eligible Certifications” listed below.
  2. Greenhouse Gas (GHG) Emissions: Properties that fall within the top 15% of the housing inventory with the lowest tonnes/year GHG emissions rating. Please see the GHG thresholds outlined below.
  3. Energy Consumption: Properties with at least 20% lower energy consumption (gigajoules/year) than “A Typical New House”.

Note: Eligibility for the Greenhouse Gas Emissions or Energy Consumption requirements will need to be assessed using the Natural Resources Canada (NRCan) or EnerGuide Rating System.

 

(1) Eligible Certifications:

A new construction, existing home, or condominium property that has received a certification from one of the following programs is eligible for the 25% premium refund.

Organization Version Level(s) Certification Name
BC Energy Step Code N/A Step 2
Step 3
Step 4
Part 3
BC Energy Step Code N/A Step 3
Step 4
Step 5
Part 9 – Detached Homes
Built Green Canada 2019-2021 Gold
Platinum
Built Green High Density
Built Green Canada 2019-2021 Gold
Platinum
Built Green Single Family
Canada Green Building Council (CGBC) 2009 Gold
Platinum
LEED Canada for Homes
CGBC v.4 Gold
Platinum
LEED Building Design and Construction: Homes and Multi-Family Low-Rise
CGBC v.4.1 Gold
Platinum
LEED Building Design and Construction: Residential Single Family
CGBC v1 Design N/A Zero Carbon Building Standard
CGBC v2 Design Flexible
Passive
Renewable
Zero Carbon Building Standard
Canadian Home Builders Association (CHBA) N/A Certified Qualified CHBA Net Zero Energy
CHBA N/A Certified Qualified CHBA Net Zero Energy Ready
Efficiency Manitoba N/A 20% to 90% + improvement New Homes Standard
Natural Resources Canada (NRCan) 2012 N/A R-2000
NRCan New Homes Standard version 12.6 N/A ENERGY STAR
NRCan Pilot Certified ENERGY STAR Multi-Family High-Rise (New Construction)
Novoclimat (Québec) 2.0 Certified Novoclimat for Homes
Novoclimat (Québec) 2.0 Certified Novoclimat for Small Multiple Unit Buildings
Novoclimat (Québec) 2.0 Certified Novoclimat for Big Multiple Unit Buildings
Passive House Canada 9 Classic
Plus
Premium
Certified Passive House
Passive House Canada 9 Classic
Plus
Premium
EnerPHit Certified Retrofit

 

(2) Greenhouse Gas (GHG) Emissions:

A new construction or existing home that falls within the top 15% of the housing inventory with the lowest NRCan EnerGuide tonnes/year GHG emissions rating for the Heating Degree Day (HDD) zone is eligible for the 25% premium refund.

To determine this, the Heating Degree Day (HDD) zone in which the building is located, is required. The HDD zone can be determined using NRCan’s HOT2000 Climate Map as follows:

  1. Enter the property’s full civic address to obtain the “Annual Heating Degree Days” value (in number of degree days).
  2. Based on the HDD number (the HDD RANGE), determine the corresponding HDD zone number (Zones 4 – 8) using the table below.
  3. To be within the top 15th percentile threshold, the Greenhouse Gas (GHG) emissions rating (tonnes/year) on the EnerGuide Label must be equal to or less than the corresponding threshold, as outlined in the table below.

 

GHG (tonnes/year) Top 15th Percentile Thresholds

HDD ZONE ZONE
4
ZONE
5
ZONE
6
ZONE
7A
ZONE
7B
ZONE
8
HDD RANGE < 3000 3000 – 3999 4000 – 4999 5000 – 5999 6000 – 6999 >= 7000
AB     <= 11.2 <= 11.4 <= 12.1  
BC <= 0.6 <= 0.3 <= 0.4 <= 3.2 <= 3.8  
MB       <= 3.5 <= 0.1 <= 0.1
NB     <= 5.9      
NL     <= 0.9 <= 0.5 <= 0.5 <= 1.7
NS   <= 13.7 <= 13.7      
NT         <= 8.2 <= 8.2
NU           <= 17.3
ON   <= 4 <= 3.8 <= 2.6 <= 3 <= 7
PE     <= 7.9      
QC   <= 0.1 <= 0.1 <= 0.1 <= 0.1 <= 0.1
SK     <= 11.2 <= 11.2 <= 11.5  
YT         <= 2.1 <= 1.7

Please Note:
  • Quebec’s low GHG thresholds are rounded up to 0.1 tonnes / year.
  • Where no HDD zone exists for that province, no thresholds are provided.
  • No EnerGuide Label issued yet for NS zone 5, NT zone 7B, SK zone 6. For those zones, the threshold is assumed to be same as that of next highest HDD zone.
  • For EnerGuide labels issued before Nov 2020 that apply to AB zone 8, BC zone 8 and NB zone 5, please use thresholds 14.4, 2.8 and 5.8 respectively.

 

(3) Energy Consumption:

A new construction or existing home property with an NRCan EnerGuide gigajoules/year rating that is at least 20% lower than “A Typical New House” is eligible for the 25% premium refund.

 

DOCUMENTATION REQUIREMENTS


Purchasing a new or existing home

  • Documentation confirming your home was built under a certified program.
    OR
  • A copy of your EnerGuide Label or EnerGuide Renovation Upgrade report confirming the energy consumption rating or greenhouse gas emissions level meets the Energy Efficient Housing Program requirements.

 

HOW TO APPLY FOR THE PARTIAL PREMIUM REFUND


To apply for a partial premium refund, the homeowner must download, complete, and mail, e-mail or fax the refund application form, together with all required documentation, to the appropriate address/fax number listed below:

Mailing Address Fax Number (Toll Free) E-mail Address
Canada Guaranty
1 Toronto Street, Suite 400
Toronto, ON  M5C 2V6
1.855.318.8946 premiumaccounting@canadaguaranty.ca

Attention / Subject Line
Finance Department – Energy-Efficient Advantage Program

Once all of the required criteria are met, Canada Guaranty will refund the homeowner the approved percentage of the standard mortgage insurance premium (including applicable provincial sales tax).

Refunds are processed and mailed directly to the homeowner within 30 business days after receiving the partial premium refund application.

 

Last Updated: 07/08/2022