CMHC Green Home

Helping to Make Energy-Efficient Housing Choices More Affordable

CMHC’s Mortgage Loan Insurance enables Approved Lenders to offer borrowers more affordable financing choices when purchasing an energy-efficient home or making energy-efficient improvements.

Benefits of CMHC Green Home

More Affordable Financing Options

A 10% refund of the CMHC Mortgage Loan Insurance premium.

Competitive Interest Rates

Access to CMHC-insured financing, and as a result, competitive interest rates.

Availability

Products and services available coast-to-coast-to-coast.

Features

  • A 10% refund of the CMHC Mortgage Loan Insurance premium.
  • Available for the construction or purchase of an energy-efficient home or the purchase or refinance of an existing home where energy-efficient improvements are being made and CMHC-insured financing is being used.
  • Borrowers’ Debt Servicing Ratios can be calculated using the estimated reduced heating costs.
  • Flexible financing options — Single advance, progress advances.

Product Highlights:

Loan Purpose

  • Purchase (with traditional or non-traditional sources of down payment)
  • New Construction
  • CMHC Improvement (where improvements are being made to make the home more energy-efficient)
  • Single and Progress Advances

Loan-to-Value (LTV) Ratio

Maximum LTV varies by CMHC product and number of units

Energy-Efficiency Benefits

  • A 10% premium refund provided to borrowers

Energy-Efficient Requirements

For the purchase of a house or unit located in low rise residential buildings

  • Rate 82 or higher on an NRCan energy evaluation; or.
  • Be constructed under a CMHC-eligible energy-efficient building program:
    ENERGY STAR® (National), R-2000 (National), LEED® Canada For Homes (National), Power Smart New Homes (British Columbia), Built Green™ BC Platinum Label Homes (British Columbia), GreenHome™ and Super GreenHome™ (Yukon), Built Green™ Platinum Label Homes (Alberta), Power Smart™ (Manitoba), GreenHouse™ (Ontario), NovoclimatMC (Quebec). Note: For LEED and Built Green certified homes (Gold, Silver and Bronze levels), an NRCan Energy evaluation with a rating of 82+ is required. For additional information on qualifying requirements and updated list of programs visit the CMHC website www.cmhc.ca/greenhome.

For the purchase of homeowner units located in high rise residential buildings

  • Homeowner units located in high rise residential buildings are to be the higher of 5% more energy-efficient than if constructed to meet provincial/territorial requirements (where they exist) or 20% more energy-efficient than if constructed to meet the Model National Energy Code for Buildings).

For improvements to make a home more energy-efficient

  • NRCan energy assessment evaluation required both before and after energy-saving retrofits/renovations;
  • Property improvements must increase the home’s NRCan energy assessment rating by at least 5 points; and once improvements are completed, the property must achieve a minimum NRCan energy assessment rating of 40.

Refund Application Process

The partial premium refund will be provided by CMHC directly to eligible borrowers. Mortgage Professionals can direct borrowers to CMHC’s website www.cmhc.ca/greenhome to obtain information on how to apply for a refund.

Qualifying the Borrower

GDS and TDS can be calculated using the estimated, reduced heating costs indicated on the NRCan energy assessment evaluation.

Applicable Premiums (Owner-occupied) – before the premium refund Surcharge
Loan to Value (LTV) Ratio Premium on Total Loan Amount Premium on Increase to
Loan Amount for Refinance

Blended Amortization
for Refinance*** 0.60%

Up to and including 65% 0.60% 0.60%
Up to and including 75% 0.75% 2.60%
Up to and including 80% 1.25% 3.15%
Up to and including 85% 1.80% N/A
Up to and including 90% 2.40% N/A
Up to and including 95%
Traditional Down Payment*
3.60%
N/A
Up to and including 95%
Non-Traditional Down Payment**
3.85% N/A

For purchase transactions the premium payable is the Premium on Total Loan Amount. For Refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount.

* Traditional sources of down payment include: Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (< 50% of minimum required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency).

** Non-traditional sources of down payment include: Any source that is arm’s length to and not tied to the purchase or sale of the property such as borrowed funds, gifts and 100% sweat equity.

*** Where there is an increase to the loan amount, the amortization period of the existing CMHC-insured loan and the loan increase may be blended using a weighted average provided the resulting amortization does not exceed the remaining economic life of the property. For refinance transactions the resulting amortization may not exceed 25 years. A 0.60% blended amortization surcharge to the loan increase applies to the Premium on Increase to Loan Amount.

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