Energy-Efficient Advantage

Energy-Efficient Program

Energy-Efficient Advantage Program

The Canada Guaranty Energy-Efficient Advantage Program rewards borrowers who purchase or renovate a home with energy-efficient upgrades. Through the Energy-Efficient Advantage program, qualified homebuyers may now be eligible to receive a partial premium refund of up to 25%.

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Program Overview

Qualified borrowers who purchase an energy-efficient home or obtain mortgage financing to make energy-efficient home improvements, may be eligible to receive a partial premium refund of up to 25%, based on the date of their mortgage application and the level of energy-efficiency achieved.

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 and all applicable extended amortization premium surcharges for loans exceeding 25 years amortization (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 (15%)

$475,000 Mortgage at 95% LTV Premium Payable*
Standard Premium Amount (95% LTV = Premium rate of 4.00%)
Energy-Efficient Premium Refund (15% of premium amount)
Total New Premium (minus refunded amount)		 $19,000.00
($2,850.00)
$16,150.00
*For the purpose of this example, the mortgage insurance premium does not include any applicable provincial sales tax.

 

PREMIUM REFUND ELIGIBILITY | Guidelines

To be eligible for the partial premium refund, all applicable and required documentation must be submitted together with the completed premium refund application form.

Qualified Canada Guaranty-insured borrowers who submit their mortgage insurance application on or after September 1, 2016 are eligible to receive a premium refund of 15% or 25%. In addition to satisfying all borrower qualifications, the homeowner must meet the following applicable energy-efficient verification requirements.

 

PURCHASE | New or Existing Home

  1. Documentation must be provided that certifies the home was built under one of the following Canada Guaranty-qualified energy-efficient building programs:
15% Refund 25% Refund

OR

  1. Homes not built under a qualified energy-efficient building program must be evaluated by an NRCan qualified energy advisor to provide documentation that confirms the home meets one of the following EnerGuide ratings requirements:
 

15% Refund

25% Refund
EnerGuide Rating 0-100 Scale Rating of 82-85 Rating of 86-100
EnerGuide Rating Gigajoules (GJ) Per Year Scale Rating of > 15% lower than “A Typical New House” Rating of > 40% lower than “A Typical New House”

NOTE: Most jurisdictions and EnerGuide partners have now transitioned to the GJ rating scale. As of January 1, 2019, all new EnerGuide Rating System evaluations must take place under the GJ system.

 

PURCHASE | High-Rise Condominium Unit

Documentation must be provided that it supports one of the following requirements:

  1. Condominium units purchased in high-rise buildings built to the LEED® Canada New Construction standard (Certified, Silver, Gold and Platinum) automatically quality for a 15% premium refund.

OR

  1. If the condominium building meets the following criteria, the borrower may also be eligible for a refund:

15% Refund

25% Refund
The building is 20% more energy-efficient than compliance with applicable building code. The building is 40% more energy-efficient than compliance with applicable building code.

 

RENOVATION | Existing Home

To qualify:

  1. An NRCan qualified Energy Advisor must assess the home and provide a pre-improvement and post-improvement EnerGuide evaluation report.

AND

  1. The homeowner must certify that the energy-efficient improvements meet one of the following EnerGuide ratings:
   

15% Refund

25% Refund
EnerGuide Rating
0-100 Scale*		 If pre-improvement
rating is < 55		 Post-improvement rating must increase by 10 points Post-improvement rating must increase by 20 points
If pre-improvement
rating is > 55		 Post-improvement rating must increase by 5 points Post-improvement rating must increase by 10 points
     
EnerGuide Rating Gigajoules Per Year Scale* If pre-improvement
rating is > 200 GJ/yr 		Post-improvement rating must decrease by 45 GJ/yr Post-improvement rating must decrease by 90 GJ/yr
If pre-improvement
rating is < 200 GJ/yr		 Post-improvement rating must decrease by 20 GJ/yr Post-improvement rating must decrease by 45 GJ/yr
*To qualify for a refund using the:

1.    0-100 Scale: The POST-improvement energy evaluation must achieve a minimum rating of 60.

2.    Gigajoules/Year Scale: The POST-improvement energy evaluation must achieve a minimum rating of < 250 GJ/yr.

NOTE: Canada Guaranty will accept either one of the 0-100 Scale or the Gigajoules per year Scale NRCan EnerGuide rating systems, as adopted by the province in which the subject home is located.

 

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 and all applicable extended amortization premium surcharges for loans exceeding 25 years amortization (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.