Mortgage Insurance Refund Program
In Canada, homeowners who purchase, build, or improve an energy-efficient home may be eligible for a refund of up to 25% on their mortgage insurance premium, which can amount to a refund of up to $14,250!
This is part of an initiative to encourage energy-efficient construction and renovation, aimed at reducing the overall environmental impact of homes. ​​
HOW DO I GET A REFUND ON MY MORTGAGE INSURANCE PREMIUM?
​1) Your home must meet one of the following criteria:​
-
ENERGY RATING: Have an energy rating that is at least 20% lower than that of a typical home.
-
GREENHOUSE GAS EMISSIONS: Be in the top 15th percentile of housing stock for the lowest greenhouse gas emissions (tonnes / year).
-
ENERGY EFFICIENCY CERTIFICATE: Have received an energy-efficient certificate from your builder at the time of purchase (e.g., ENERGY STAR, R-2000, LEED, etc.).
-
ENERGY EFFICIENT UPGRADES: Have spent a minimum of $20,000 on eligible energy-efficient upgrades.
​
2) Your application must include a copy of your EnerGuide Label, EnerGuide Renovation Upgrade Report, and/or builder certification label, showing that at least one of the minimum criteria has been met. EnerGuide reports will be provided by your service organization (Greenbrain Inc.) upon completion of an energy assessment.
​
3) Your application must be submitted to your mortgage default insurance provider within 24 months of the closing date of your mortgage. Supporting documentation cannot be more than 5 years old.
​
​4) Applications with supporting documentation will be processed within approximately 30 business days and paid directly to the mortgage holder by their mortgage default insurance provider.
​
FREQUENTLY ASKED QUESTIONS
1) What is mortgage insurance?
​
The Government of Canada, through the office of the Superintendent of Financial Institutions (OSFI) requires mortgages with a down payment of less than 20% to carry mortgage default insurance.
​
2) Which companies in Canada provide mortgage default insurance?
​
Within Canada, there are only 3 companies with a license to provide mortgage default insurance. This includes: Canada Guaranty, CMHC (a Canadian Crown Corporation), and Sagen (formerly Genworth Canada)
​
​
3) How does mortgage insurance work?
​
If you buy a home under $1,000,000 (or under $1,500,000 after December 15, 2024), and have a down payment of less than 20%, mortgage insurance is required.
The mortgage insurance premium you pay is directly related to your loan-to-value ratio and ranges from 0.6% – 4% of the total loan amount. Your mortgage insurance premium may also be added directly to your mortgage and amortized over its length.
​​
​
4) How much of a refund can I get?
​​
Eligible customers can receive a 25% refund on their mortgage insurance premium. Assuming a house purchase price of $1,500,000, with a 95% loan-to-value ratio which is equivalent to a 5% down payment, the total mortgage amount would be $1,425,000.
​
The total mortgage insurance premium would be $57,000 (or 4% of the mortgage amount). AND, a 25% refund on that premium would equate to a $14,250 refund cheque paid directly to the mortgage holder.
​​
5) How do I get started?
​​​
Call our Greenbrain team today at 1-866-848-4998 to speak with one of our representatives to learn more and schedule your energy audit.