CMHC Eco Plus Lender Information
Help your clients save money. CMHC Eco Plus offers a premium refund of 25% to borrowers who buy or build climate-friendly housing using CMHC-insured financing.
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CMHC Eco Plus Lender Information
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CMHC is committed to working with mortgage industry professionals to help homebuyers meet their housing needs. CMHC Eco Plus offers a 25% partial premium refund to borrowers who buy or build climate-friendly housing using CMHC mortgage loan insurance.
Download our CMHC Eco Plus program fact sheet (PDF).
ELIGIBILITY FOR CMHC ECO PLUS
To be eligible for the partial premium refund, the home must meet one of the three following requirements:
Eligible Certificates | Greenhouse Gas (GHG) Emissions* | Energy Consumption* |
---|---|---|
Properties awarded an eligible certificate | Properties with tonnes/year GHG rating that fall within the top 15% of the housing stock in lowest GHG emissions rating | Properties with a gigajoules/year rating of at least 20% lower than “A Typical New House” |
*Eligibility is assessed using the Natural Resources Canada (NRCan) EnerGuide Rating System.
GREENHOUSE GAS (GHG) THRESHOLDS
The Heating Degree Day (HDD) zone which the building is located is required. The HDD zone can be determined using NRCan’s HOT2000 Climate Map as follows: enter the property’s full civic address, retrieve the Annual HDD (in number of degree days) and determine the corresponding HDD zone number (Zones 4 – 8) applicable in Canada. To be within the top 15th percentile threshold, the rated Greenhouse Gas (GHG) emissions on the EnerGuide Label must be equal to or less than the corresponding threshold in the table shown below.
ZONE | HDD RANGE | AB | BC | MB | NB | NL | NS |
---|---|---|---|---|---|---|---|
Zone 4 | <3000 | <= 0.6 | |||||
Zone 5 | 3000-3999 | <= 0.3 | <= 13.7 | ||||
Zone 6 | 4000-4999 | <= 11.2 | <= 0.4 | <= 5.9 | <= 0.9 | <= 13.7 | |
Zone 7A | 5000-5999 | <= 11.4 | <= 3.2 | <= 3.5 | <= 0.5 | ||
Zone 7B | 6000-6999 | <= 12.1 | <= 3.8 | <= 0.1 | <= 0.5 | ||
Zone 8 | >=7000 | <= 0.1 | <= 1.7 |
ZONE | HDD RANGE | NT | NU | ON | PE | QC | SK | YT |
---|---|---|---|---|---|---|---|---|
Zone 4 | <3000 | |||||||
Zone 5 | 3000-3999 | <= 4 | <=0.1 | |||||
Zone 6 | 4000-4999 | <= 3.8 | <= 7.9 | <=0.1 | <= 11.2 | |||
Zone 7A | 5000-5999 | <= 2.6 | <=0.1 | <= 11.2 | ||||
Zone 7B | 6000-6999 | <= 8.2 | <= 3 | <=0.1 | <= 11.5 | <= 2.1 | ||
Zone 8 | >=7000 | <= 8.2 | <= 17.3 | <= 7 | <=0.1 | <= 1.7 |
Notes:
- 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.
ELIGIBLE CERTIFICATIONS (INCLUDING INDIVIDUAL RESIDENTIAL CONDOMINIUM UNITS)
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+ | Certified | ENERGY STAR |
NRCan | Pilot | Certified | ENERGY STAR Multi-Family High-Rise (New Construction) |
Ministère de l’Énergie et des Ressources naturelles du Québec | N/A | Homologué | Novoclimat for Homes |
Ministère de l’Énergie et des Ressources naturelles du Québec | N/A | Homologué | Novoclimat for Small Multiple-Unit Buildings |
Ministère de l’Énergie et des Ressources naturelles du Québec | N/A | Homologué | 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 |
PREMIUM INFORMATION
Learn about mortgage insurance premium costs with our Premium Information for Homeowner and Small Rental Loans.
CONTACT US
Contact your Regional Manager, Client Relations or call our Underwriting Centre team at 1-888 GO emili (1-888-463-6454).
ELIGIBILITY REQUIREMENTS APPLICABLE TO ALL PROGRAMS
Eligible borrowers
Individuals who are Canadian citizens, permanent residents of Canada, or non-permanent residents who are legally authorized to work in Canada.
Loan-to-value (LTV) ratios
For homeowner loans (owner-occupied properties), the loan-to-value ratio for 1 – 2 units is up to 95% LTV. For 3 – 4 units, the ratio is up to 90% LTV.
For small rental loans (non-owner occupied), the loan-to-value ratio for 2 – 4 units is up to 80% LTV.
Minimum equity requirements
For homeowner loans, the minimum equity requirement for 1 – 2 units is 5% of the first $500,000 of lending value and 10% of the remainder of the lending value. For 3 – 4 units, the minimum equity requirement is 10%.
For small rental loans, the minimum equity requirement is 20%.
Purchase price / lending value, amortization and location
For both homeowner and small rental loans, the maximum purchase price / lending value or as-improved property value must be below $1,000,000.
For homeowner loans, CMHC-insured financing is available for one property per borrower/co-borrower at any given time.
The maximum amortization period is 25 years.
The property must be located in Canada and must be suitable and available for full-time, year-round occupancy. The property must also have year-round access (via a vehicular bridge or ferry if it is on an island).
Down payments
The down payment can come from sources such as savings, the sale of a property, or a non-repayable financial gift from a relative.
Rental income
Whether the property is owner occupied or non-owner occupied, subject to an MLI application or not, we offer different approaches to rental income for qualification purposes.
Find out more about the approach(es) that can be used to calculate rental income and the inputs to consider when calculating the debt service ratios.
Creditworthiness
At least one borrower (or guarantor) must have a minimum credit score of 600. CMHC may consider alternative methods of establishing creditworthiness for borrowers without a credit history.
Debt service
The maximum threshold is a gross debt service (GDS) ratio of 39% and a total debt service (TDS) ratio of 44%.
Interest rates
The GDS and TDS ratios must be calculated using an interest rate which is the greater of the contract interest rate plus 2 per cent, or 5.25 per cent.
Advancing options
Single advances include improvement costs less than or equal to 10% of the as-improved value.
Progress advances include new construction financing or improvement costs greater than 10% of the as-improved value. With Full Service, CMHC validates up to 4 consecutive advances at no cost. For Basic Service, the Lender validates advances without pre-approval from CMHC.
Non-permanent residents (homeowner loans only)
Non-permanent residents must be legally authorized to work in Canada (with a work permit). Mortgage loan insurance is only available for non-permanent residents for homeowner loans for 1-unit property, owner occupied, up to 90% LTV.
Non-permanent residents are not eligible for alternative methods of establishing creditworthiness. In cases where a credit report is not available, a letter of reference from the borrower’s financial institution in their country of origin may be considered.
RESOURCES
The Job Aid is provided by Canada Mortgage and Housing Corporation (CMHC) for convenience and should only be used as a reference tool.
CMHC makes no representation or warranty of any kind, express or implied, about the accuracy, reliability, completeness of the Job Aid or the results to be obtained from its use. CMHC assumes no responsibility for any errors or omissions within the Job Aid.
Under no circumstances shall CMHC be held liable for any loss or damage (including any type of damage), which may be attributable to the reliance on and use of the Job Aid. The Job Aid is not intended to provide specific advice or recommendations in any circumstances and does not represent a commitment by CMHC to approve or qualify an application under its programs.
CMHC does not retain any of the data entered in the Job Aid, all data remains on the user's computer.
Disclaimer
This material is a quick reference tool for CMHC’s common Mortgage Loan Insurance. Additional conditions may apply.
This information is subject to change at any time. Please verify with CMHC that you have the most up to date information before the loan is processed.
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