The Canada Greener Homes Loan: What Is There to Know?

What if we told you that you could secure an interest-free loan of up to $40,000 to make your home more eco-friendly and reduce your carbon footprint? Sounds too good to be true? Think again! It’s exactly what the Canada Greener Homes Loan offers.

This federal initiative was designed to help Canadian homeowners access funding for energy-efficient renovations or retrofits. With this grant, you can improve your home's energy performance while making it greener and more sustainable.

• What are the eligibility requirements?

• How much funding can I get through this loan?

• What are the repayment terms?

• What are the eligible retrofits?

• How can you sign up to access funding?

Find the answers to these questions and much more below.

An Interest-Free Loan Offered by the Government of Canada

Source : MDR Solutions Inc.

How Much Funding Can Homeowners Get Through the Canada Greener Homes Loan?

The minimum loan sum is $5,000, with a maximum payout of $40,000. The amount you’re eligible for will be calculated based on the scope of your renovations as long as they meet the program’s specified criteria.

What Are the Loan Program Eligibility Requirements?

• This loan is exclusively for Canadian citizens, permanent residents, or non-permanent residents who are legally authorized to work in Canada. 

• The loan application must be submitted by the homeowner through the greener homes loan portal, and the home specified in the application must be their primary residence.

• A home evaluation must be carried out pre-retrofit (not post-retrofit).

• This evaluation must have been done on or after April 1, 2020.

• Loan-specific retrofits have not been undertaken.

• Homeowners must be able to prove they have a good credit history for loan approval.

You’re ineligible for the loan if one of the following applies to your situation:

• The retrofits have been undertaken or completed.

• Your application includes renovations that weren’t recommended during the pre-retrofit evaluation.

• You’re attempting to add retrofits that weren’t already included in your approved loan application.

• The retrofits are deemed ineligible for the Canada Greener Homes Grant.

• You’ve already been subject to a consumer proposal, an order for repayment of debt, bankruptcy, or insolvency.

Which Home Retrofits Qualify for the Canada Greener Homes Loan?

• Certain home insulation improvements

• Air-sealing work

• Window and door replacements

• Smart thermostat installation

• Green heating system installation (heat pump)

• Renewable energy-based systems installation (solar panels)

• Retrofits meant to improve a building’s resilience, protecting against environmental damage (waterproofing fabric, photovoltaic solar system)

Click here to see the complete list of eligible and ineligible retrofits.

How Does It Work: How to Get an Interest-Free Loan

Source : Soumission Rénovation

Schedule a Pre-Retrofit Home Evaluation

First, contact an energy efficiency advisor to carry out your home evaluation. The hired advisor will generate a report with their retrofit recommendations.

Find energy efficiency advisors in Quebec, Nova Scotia, and the rest of Canada.

Choose Desired Retrofits and Request Quotes

Once the advisor sends you their report, determine which retrofits to carry out. Then, contact several contractors to get project-specific quotes. To do so, simply fill out a form to be connected with qualified contractors.

Ensure the quotes you receive are detailed, describing the work commissioned, costs, and timelines whenever possible. If the contractor requests a deposit, ensure it’s clearly indicated in the paperwork. If your loan application is approved, you could receive an advance of about 15% of the total loan amount to cover said expense.

Fill Out a Loan Application

Before jumpstarting any retrofits, submit your loan application. The loan doesn’t cover ongoing renovations. Fill out a request form, including as much information as possible to maximize your chances of it being approved.

Your application should include the following documents: 

• Your pre-retrofit evaluation request file number.

• An official photo ID proving your address (if you don’t have such a document, include a public utilities bill).

• A property tax slip or an official evaluation document of the building in question.

• Quotes received from potential retrofit contractors.

• Proof of income and employment (payslip, employment certificate, bank statement, T4 slip).

Execute the Retrofits

Once you submit your loan application, retrofits can be undertaken. Hold on to all relevant documents (invoices, receipts) to provide as proof of your request. 

Note that the final loan payment will be issued once the retrofits are completed. Applicants may receive an advance on the loan to cover the deposit, including other advances once they receive the hired contractor’s final invoices, but the remaining sum will be issued once the retrofits are completed and evaluated.

Schedule a Post-Retrofit Evaluation

Once the retrofits are completed, contact your energy efficiency advisor again to schedule a post-retrofit evaluation. They will write up a new report, which will then be added to your file. Said document is used to determine the final loan amount you can obtain. Once your loan request is granted, funds should be disbursed within 10 days. Following the reception of the funds, you will have 10 years to reimburse the interest-free loan.

Are There Other Federal Home Improvement Grants?

As part of the Canada Greener Homes Initiative, several grants and financial assistance programs are made available to residential homeowners. All those looking to reduce their carbon footprint are deemed targetted customers.

At the time of writing this article, select grants and financial assistance programs are being reevaluated. However, there are still programs available to eligible homeowners.

If your home is oil heated, check out this program:

OHPA Program - What Are Suitable Alternatives to Oil Heating?

FAQ About the Canada Greener Homes Initiative

Is the Greener Homes Grant no longer accepting new applicants?

As for February 2024, the Canada Greener Homes Grant is no longer available. At the time of writing this article, said grant was not being reevaluated nor replaced. However, other province-specific programs are made available to homeowners. The Canada Greener Homes Loan is still available.

Can I also apply for the Rénoclimat grant (Quebec)?

Yes, the Canada Greener Homes Loan was created to go hand in hand with the Rénoclimat program, which was designed by the Government of Quebec. Quebec homeowners can submit applications for both funding programs.

What are the most effective retrofits for minimizing your carbon footprint?

Retrofits that have the greatest impact on a homeowner's carbon footprint are as follows:

• Air-sealing retrofits

• Replacing oil-fueled heating systems with heat pumps

• Installing Energy Star-certified devices

• Insulation improvements

• Using eco-friendly materials

How much can I get from the Greener Homes Grant?

The Canada Greener Homes Grant is no longer taking applicants.

Is the Greener Homes Loan still available in Canada?

Yes, the Greener Homes Loan is currently accepting homeowner applications.

Want to learn more about green renovations? Check out this article: Eco-Friendly and Green Renovation Guide