The Canada Greener Homes Loan program (not to be confused with the Greener Homes Grant) aims to help Canadian homeowners make energy-efficient upgrades to their homes as a part of the overall Canada Greener Homes initiative.
This program provides financial assistance to homeowners undertaking retrofits that will improve their home’s energy efficiency and reduce their environmental impact. From retrofitting your home with renewable energy options such as solar panels, to replacing your doors and windows to more energy-efficient models , there are plenty of choices available.
Read on for a step-by-step guide on how to apply for the Canada Greener Homes Loan, including the process, eligibility requirements, and the difference between the Canada Greener Homes Loan and Grant.
Loan Details
Maximum: $40,000
Minimum: $5,000
Repayment term: 10 years, interest-free
Loan Type: Unsecured personal loan on approved credit
Here’s a guide to how the program works:
- Step 1 – Apply for Canada Greener Homes Grant with Enbridge HER+
- Step 2 – Get Pre-Retrofit EnerGuide Evaluation
- Step 3 – Plan Retrofits with Ottawa Home Services
- Step 4 – Submit Loan Application
- Step 5 – Complete Retrofits
- Step 6 – Get Post-Retrofit Evaluation
- Step 7 – Receive Loan
- Step 8 – Repay Loan
How to Apply for the Greener Homes Loan
1. Apply for Canada Greener Homes Grant with Enbridge HER+
There are a few eligibility requirements to receive the Canada Greener Homes Loan. Let’s take a look at how eligible applicants can breeze through the grant process.
To apply for the Canada Greener Homes Loan, you must first apply for the Canada Greener Homes Grant. This grant provides up to $10,600 to cover the cost of a pre-retrofit EnerGuide evaluation, which is a mandatory step in the loan application process. Ottawa Home Services can assist you with any questions about this process.
2. Get Pre-Retrofit EnerGuide Evaluation
After receiving the Canada Greener Homes Grant, you’ll schedule a pre-retrofit EnerGuide evaluation with a registered energy advisor. The energy advisor will take a look at your home’s current energy efficiency and recommend retrofit measures that can help you save energy and reduce greenhouse gas emissions. These eligible upfront costs will be used for the final evaluation of your loan amount.
Important to Note:
Only retrofits that have been approved or recommended by your energy advisor and are listed on the grant’s eligible retrofits and installations (such as upgrading insulation, installing solar panels, or implementing resiliency measures) will be eligible for the loan.
3. Plan Retrofits with Ottawa Home Services
With the energy advisor’s recommendations and initial cost estimate for your eligible property, you’ll next work with Ottawa Home Services to plan the specific retrofits you wish to undertake.
Our qualified experts will help you understand the costs, energy savings, and environmental benefits associated with each retrofit option.
4. Submit Loan Application
Once you have a clear plan for your retrofits, you can apply for the Canada Greener Homes Loan. Submit your loan application, including the details of the retrofits you plan to undertake, to the financial institution that is offering the loan.
In order to apply for the Canada Greener Homes Loan, you must first be eligible and apply for the Canada Greener Homes Grant.
To submit your application, you must provide the following:
- Your property tax statement
- Your driver’s license or other government-issued identification, along with a utility bill
- A confirmation of income and employment
- Your retrofit quote from Dr HVAC or other contractors
5. Complete Retrofits
After receiving loan approval, proceed with completing the retrofits as planned. For successful completion of your Canada Greener Homes Loan, ensure that the retrofits adhere to the program’s guidelines and are carried out by qualified professionals such as Ottawa Home Services.
Important to Note:
Make sure you save copies of all your receipts, paid invoices, and other relevant documents.
6. Get Post-Retrofit Evaluation
Following the completion of the retrofits, schedule a post-retrofit EnerGuide evaluation with an energy advisor. This evaluation will assess the energy savings achieved and confirm that the retrofits meet the program’s requirements.
7. Receive Loan
Once the post-retrofit evaluation is complete and the retrofits are deemed eligible, you will receive the Canada Greener Homes Loan funds to cover the cost of the retrofits. The final approved loan amount will be reviewed based on the actual cost of the completed eligible retrofits.
8. Repay Loan
Repayment of the loan will be done over a period of 10 years. Detailed information on the repayment of your loan agreement will be provided after you receive your funds. Once you make your final loan payment, you’re finished!
We hope this guide has helped you better understand the program and that you’ll join us in our effort to reduce carbon emissions. Steps like these will help Canada meet its climate change commitments and reach our goal of achieving net-zero greenhouse gas emissions by 2050.
Visit Natural Resources Canada’s Greener Homes Program website for additional details.
Get More Information
Are You Eligible for the Greener Homes Loan?
To be eligible for the Canada Greener Homes Loan, you must meet certain criteria:
- You must be eligible for and apply for the Canada Greener Homes Grant (or the equivalent provincial program)
- You must be the owner of a Canadian residential property, and the home must be your primary residence
- You must have completed a pre-retrofit evaluation of your home dated April 1, 2020 or later
- You must have good credit history
Additional eligibility requirements may apply, so it is advisable to consult the official program guidelines or seek assistance from Ottawa Home Services to determine your eligibility.
Grant vs. Loan – What’s the Difference?
At its most basic, a grant does not need to be repaid, whereas a loan (even an interest-free loan) must be repaid. In the case of the Canada Greener Homes Loan, the funds must be repaid within 10 years.
While the Canada Greener Homes Grant provides financial assistance for the pre-retrofit evaluation, the Canada Greener Homes Loan is the actual loan program that covers the costs of the retrofits themselves.
While both the grant and the loan funds are available once the retrofit and post-retrofit evaluations are completed and the final invoices have been paid, the loan funds will only become available once your final loan amount has been assessed. The grant is available once Natural Resources Canada has completed the final assessment of the grant amount. The loan is received after payment of the retrofits.
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