How to Use the Canada Greener Homes Loan
- Ruthy Siemens
- 1 day ago
- 5 min read
If you are looking for Canada Greener Homes Grant, it is no longer available...for now. The Federal Government could always re-implement it so don't be afraid to keep looking for it in the future.
What is the Canada Greener Homes Loan for:
The Canada Greener Homes Loan offers interest-free financing to help Canadians make their homes more energy efficient and comfortable.
The loan can help you finance eligible retrofits that are recommended by an energy advisor and that have not yet been started.
**Important** Make sure you read ALL the information before you sign a contract with a provider or start your retrofit renovations!
*Important* You will have to pay the contractor a deposit upfront and the full payment so make sure you have access to $5-40K. You may want to start the process of getting a Line of Credit or increasing your Credit card limit.
Don't go any further until you have this figured out first. I don't want you to be stuck with a big loan and no funds for several months.
We started this process in September and by the time we got our loan processed it was already October. Then the contractor needed a couple weeks to make the windows which took us to February which was too cold to do the installation so we delayed it until April. And shortly after had our post-retrofit energy inspection. It is now the end of May and we are still waiting to receive our funding.
Eligibility:
You must be a Canadian citizen, permanent resident, or non-permanent resident who is legally authorized to work in Canada
You must own the home and it must be your primary residence
You have a pre-retrofit evaluation done and have not yet had a post-retrofit evaluation
Your pre-retrofit evaluation was completed on or after April 1, 2020
You have not started the retrofits for which you are seeking a loan
You have a good credit history and are not in:
a consumer proposal
an orderly payment of debt program
a bankruptcy or equivalent insolvency proceeding
Loan Details:
Maximum: $40,000
Minimum: $5,000
Repayment term: 10 years, interest-free
Loan type: Unsecured personal loan on approved credit
A maximum of one loan is available per eligible property and homeowner.
If it costs more than $40K, you are responsible for the additional costs.
Once approved, up to 15% of the loan can be delivered up front if a deposit is required by your contractor. The initial advance is only available for retrofits that require a deposit. The balance of the loan will be delivered once the retrofits have been completed and verified through a post-retrofit evaluation. (The initial advance is increased to 25% if your property is located in the North or off-grid.)
There are exceptions for Northern and off-grid communities in which you will have to see if you qualify. I thought that I lived pretty far north but not far enough to qualify.
Here are the steps to get you through the process!
#1. Pre-retrofit evaluation of your home:
There is a link to a local directory of energy advisors in your area. Find one and make an appointment for the Pre-retrofit evaluation. The approximate cost for this was $500 + Travel + GST. We personally went with NRGwise Consulting.
#2. Plan your retrofits and obtain quotes from 1-3 contractors. We ended up getting two quotes.
**Do not start any work until your loan application has been submitted. Retrofits started before submitting your loan application are not eligible.**
All quotes must be clear and legible and must:
provide a detailed summary of the costs of the work to be completed
identify any deposits required by the contractor
include the name and contact details for the contractors completing the work
Do-it-yourself (DIY) retrofits:
Before you begin, know which retrofits require a licensed and trained professional. You are responsible for ensuring that retrofits completed are eligible for the program.
If you are completing any retrofits yourself, you must provide a detailed summary of all materials excluding labor. Personal labour costs are not eligible. All products must be purchased in Canada and online purchases are eligible only if they are ordered from an online distributor located in Canada. You will be required to provide all receipts later.
#3. Submit your loan application before starting any work
To submit your loan application, you will require:
Pre-retrofit evaluation file number
Government issued photo identification (ID) with your address (for example, a driver’s license). If the photo ID does not show your address, you must also provide a utility bill that shows your current address
Property tax bill or assessment
Detailed quotes from contractors or a complete material and rental estimate from suppliers
Proof of income and employment. Two of the following documents are required:
Most recent pay stub(s) dated within 60 days
Letter of employment dated within 60 days
Bank statement(s) showing direct deposit for the most recent two-month period
Most recent T4 or Notice of Assessment
CMHC has contracted Intellifi to deliver Canada Greener Homes Loans.
Once approved, you will be emailed the approval and need to sign a contract and the application will look like this:
#4. Complete your Retrofits
Keep ALL copies of receipts and invoices
I had to pay the contractor upfront so if you don't have access to $5-40K, you may want to start that process of getting a Line of Credit or Credit card limit increase to pay for this first.
#5. Get a post-retrofit evaluation
The cost for this was approximately $250 + Travel + GST.
Your Energy Advisor will upload the results of your post-retrofit evaluation confirming which retrofits have been completed. This can take up to 30 days.
I would recommend making this appointment as soon as you know the date of installation so that you can get your money quicker.
#6. Request final loan advance
After your service organization submits the results of the post-retrofit evaluation, you must sign back into the loan application portal and choose “Request Funding.” You will be asked to upload all final invoices for the completed work.
The loan will be reviewed again based on the actual completed retrofits. If the final costs are higher than the initial estimate, the loan amount will not increase.
#7. Receive your loan amount
You will receive email confirmation of the final loan amount after your funding request has been approved.
The final approved loan amount (less the initial advance if you received one) will be deposited into your bank account within approximately 10 days of funding request approval.
#8. Repay your loan over the defined time period
Mine will cost approximately $170/month over 10 years for a $20K for windows. You will sign a Pre-authorized Debit Agreement from your bank account.
Now GO and Be Intentional with your Retrofits!
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