Understanding CMHC Eco Plus and How to Apply for Your 25% Premium Refund

Many homeowners and homebuyers face rising costs when purchasing or building a new home. The Canada Mortgage and Housing Corporation (CMHC) offers a program called Eco Plus that helps reduce mortgage insurance premiums for energy-efficient homes. If you bought a Step Code 3 home built after 2023, you may qualify for a 25% premium refund through this program. This post explains how CMHC Eco Plus works and guides you through the application process for the refund.

Energy-efficient home qualifying for CMHC Eco Plus

What is CMHC Eco Plus?

CMHC Eco Plus is a program designed to encourage homeowners and homebuyers to choose homes that meet higher energy efficiency standards. When you buy an energy efficient home that qualifies, CMHC offers a 25% refund on your mortgage loan insurance premium. This refund lowers your upfront costs and rewards you for investing in a greener home.

The program applies to homes that meet or exceed Step Code 3 of the Canadian National Energy Code for Buildings (NECB) or equivalent standards. These homes use less energy for heating, cooling, and lighting, which means lower utility bills and a smaller environmental footprint when combined with increased air tightness of a house.

How Does the 25% Premium Refund Work?

When you apply for mortgage loan insurance through CMHC, the premium is calculated on a percentage of your mortgage amount. With Eco Plus, if your home qualifies, you must apply to CMHC for a 25% premium refund after mortgage closing. This refund is a direct financial benefit that reduces the overall cost of your mortgage insurance.

For example, if your mortgage insurance premium is $55,000, you could receive a $13,750 refund through CMHC. This refund is separate from any other rebates or incentives you may receive for energy efficiency.

Steps to Apply for the CMHC Eco Plus Refund

Applying for the Eco Plus refund involves a few clear steps. Here’s how homeowners and homebuyers can get started:

1. Confirm Your Home’s Eligibility

   Ensure your home meets Step Code 3 or NRCan EnerGuide Rating System for energy efficiency. Your builder/seller should provide EnerGuide Label or a BC Step Code compliance report confirming this.

   
   

2. Complete Your Mortgage Loan Insurance Application

   When applying for your mortgage application with CMHC insurance, mention that your home qualifies for Eco Plus. Your mortgage provider can determine how they can assist you.

   
   

3. Submit the Eco Plus Refund Application

   After your mortgage closes, submit the refund application to CMHC. This usually involves filling out a form and attaching proof of your home’s energy rated compliance report. You have up to 24 months to apply from the date of mortgage funding or closing.

   
   

4. Wait for Approval and Refund

   CMHC reviews your application and, if approved, issues the 25% premium refund by direct deposit to your account. This process can take approximately 6-8 weeks.

   
   

Tips for Homeowners and Homebuyers

• Work with your realtor early to get the required energy efficiency certification.

• Keep all documentation related to your home’s energy performance.

• Ask your mortgage professional about the Eco Plus program when applying for mortgage insurance.

• Application for refund of up to 25% of premium can begin after the mortgage closing date. You have up to 24 months to apply.

  
  

If you are a homeowner or homebuyer who purchased a Step Code 3 home built after 2023 and want help navigating the CMHC Eco Plus program or applying for your 25% premium refund, feel free to contact me by direct message or email. I can guide you through the process and ensure you get the benefits you deserve.