Built Green Canada - Energy Efficient Mortgages

Energy Efficient Mortgages

CMHC and Genworth Financial (formerly GE Mortgage Insurance Canada), are the two national agencies that provide mortgage insurance to Canadian financial institutions. They both offer “energy efficient mortgages” for new homes which provide:

a 10% premium refund on mortgage insurance
an amortization periods of up to 35 years.

Effective April 1st, 2010, CMHC Eneregy Efficient Mortgages for new homes, will need a rating of 80 (Built Green Platinum) to qualify.

Contact your lending institution to find out if they are participating in these energy efficient products as well as what ammortization periods they offer. A mortgage broker may be able assist you in collecting this information since they have access to a vast array of lenders.

Borrowers must apply directly to CMHC or Genworth Financial for these incentives and are responsible for obtaining the appropriate documentation. You can also contact your lender for more information.

Affordability = Energy Efficient Mortgages

See our Generic Example/Estimate below:

CONTACT YOUR LENDER FOR ACTUAL MORTGAGE DETAILS

	House Price	$300,000.00
	GST	$18,000.00
	Total House Price	$318,000.00
	Downpayment (5%)	$15,900.00
	Total House Price less Downpayment	$302,100.00
	Mortgage Insurance (2.75%)	$8,307.75
	Mortgage Insurance Refund (10%)	$830.78
	Total Mortgage Amount	$309,576.98

	Amortization Period	25
	Interest Rate (compounded semi-annually)	5.5%
	Annual Payments (for Amortization Period)	$20,875.00
	Monthly Payments	$1,740.00

	Amortization Period	35
	Interest Rate (compounded semi-annually)	5.5%
	Annual Payments (for Amortization Period)	$18,227.00
	Monthly Payments	$1,519.00

CMHC

Offers a 10% CMHC mortgage loan insurance premium refund when purchasing an energy efficient home or making energy-saving renovations. You could also have the added flexibility of a longer amortization (the period of time required to repay your mortgage) from 25 years to a maximum of 35 years, significantly reducing your monthly payments. View the press release.

Genworth Financial

Offers a 10% premium refund on Genworth-insured mortgages to home buyers purchasing an energy efficient home or refinancing an existing home to make energy-saving renovations. It is made available on loans with up to 35-year amortization periods at standard mortgage insurance premium rates. View the press release.