Did you know about these valuable opportunities for buyers of New Construction property with an Insured Mortgage?
Energy Efficiency Refund: A Hidden Benefit
Clients securing an insured mortgage for a new build with energy-efficient certification are eligible for a 25% refund on the default insurance premium.
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In British Columbia:
Most new builds must meet BC Energy Step Code requirements as of May 1, 2023, which means nearly all qualify for this refund. -
Surprising Stats:
75% of eligible buyers don’t apply for this refund—often because they aren’t informed or their broker hasn’t advised them.
Buyers have two years from the mortgage start date to apply, and the program is offered by CMHC, Sagen, and Canada Guaranty. If you bought a new construction property in the past 2 years and paid for mortgage default insurance, you may still have time to apply.
Why This Matters Now
The 30-year amortization option for first-time homebuyers (FTHBs) purchasing new builds took effect on August 1, 2024. This aligns perfectly with the refund program, as buyers may be more likely to purchase energy-efficient properties.
This program applies to all buyers—not just FTHBs—purchasing energy-efficient new builds with insured mortgages.
Resources for Applying
It’s easy to apply, and refunds are processed quickly. Below are direct links to insurer information and applications:
- CMHC – 25% Partial Premium Refund
- Sagen – Energy Efficient Housing
Program - Canada Guaranty – Energy-Efficient Advantage
If you have any questions or need further assistance, feel free to reach out to us at the office.
Thank you to our partners at MCAP and Lisa for sharing this important reminder to our clients.