The Energy Efficient Housing Program is a financial incentive initiative designed to encourage Canadian homeowners to invest in energy-efficient housing. By providing mortgage insurance rebates, the program makes it easier for homeowners to afford upgrades that improve energy performance, reduce environmental impact, and lower utility costs through a house energy audit.
This program is funded and administered by Sagen, one of Canada’s leading private mortgage insurers. Sagen helps homeowners finance energy-efficient homes by offering a rebate 25% on the mortgage insurance premium when purchasing, building, or renovating a home to meet high energy efficiency standards, including qualifying for the Home Efficiency Rebate.
Benefits of the Energy Efficient Housing Program
25% Mortgage Insurance Rebate: Homeowners who purchase, build, or renovate an energy-efficient home can receive a 25% refund on their Sagen mortgage insurance premium, helping to reduce overall borrowing costs while qualifying for the Home Efficiency Rebate.
Lower Energy Costs: Energy-efficient homes require less power for heating and cooling, leading to substantial long-term savings on utility bills, often verified through a house energy audit.
Environmental Sustainability: Investing in energy-efficient upgrades reduces carbon emissions and supports a greener future, aligning with the goals of the Home Efficiency Rebate.
Enhanced Home Comfort: Homes with improved insulation, advanced heating and cooling systems, and energy-efficient windows provide better air quality, reduced drafts, and consistent indoor temperatures throughout the year.
Higher Property Value: Homes designed with energy efficiency in mind are more appealing to buyers and often have a higher resale value and market demand.
Eligibility for the Energy Efficient Housing Program
To qualify for the 25% premium refund, the property’s energy efficiency level and/or greenhouse gas (GHG) emissions must meet one of the following criteria:
- Certified Energy Efficiency: The property meets eligible certification standards.
- Greenhouse Gas Emissions: The property ranks within the top 15% of the lowest GHG emissions in its area.
- Energy Consumption: he property consumes at least 20% less energy (gigajoules/year) compared to “A Typical New House.”
Let’s take a closer look at each of these qualification criteria and what they entail.
Eligible Certifications:
| Organization | Version | Level(s) | Certification Name |
|---|---|---|---|
| BC Energy Step Code | N/A | Step 2, Step 3, Step 4 | Part 3 |
| BC Energy Step Code | N/A | Step 3, Step 4, Step 5 | Part 9 – Detached Homes |
| Built Green Canada | 2019-2021 | Gold, Platinum | Built Green High Density |
| Built Green Canada | 2019-2021 | Gold, Platinum | Built Green Single Family |
| Canada Green Building Council (CGBC) | 2009 | Gold, Platinum | LEED Canada for Homes |
| CGBC | v.4 | Gold, Platinum | LEED Building Design and Construction: Homes and Multi-Family Low-Rise |
| CGBC | v.4.1 | Gold, Platinum | LEED Building Design and Construction: Residential Single Family |
| CGBC | v1 Design | N/A | Zero Carbon Building Standard |
| CGBC | v2 Design | Flexible Passive Renewable | Zero Carbon Building Standard |
| Canadian Home Builders Association (CHBA) | N/A | Certified | Qualified CHBA Net Zero Energy |
| CHBA | N/A | Certified | Qualified CHBA Net Zero Energy Ready |
| Efficiency Manitoba | N/A | 20% to 90% + improvement | New Homes Standard |
| Natural Resources Canada (NRCan) | 2012 | N/A | R-2000 |
| NRCan | New Homes Standard version 12.6 | N/A | ENERGY STAR |
| NRCan | Pilot | Certified | ENERGY STAR Multi-Family High-Rise (New Construction) |
| Novoclimat (Québec) | 2.0 | Certified | Novoclimat for Homes |
| Novoclimat (Québec) | 2.0 | Certified | Novoclimat for Big Multiple Unit Buildings |
| Novoclimat (Québec) | 2.0 | Certified | Novoclimat for Big Multiple Unit Buildings |
| Passive House Canada | 9 | Classic Plus Premium | Certified Passive House |
| Passive House Canada | 9 | Classic Plus Premium | EnerPHit Certified Retrofit |
Greenhouse Gas (GHG) Emissions:
To qualify under this criterion, the property must rank within the top 15% of the lowest GHG emissions in its region. This is determined based on the NRCan EnerGuide “tonnes/year GHG rating” for the home’s specific Heating Degree Day (HDD) zone.
How it Works:
The GHG rating measures the home’s annual greenhouse gas emissions, primarily from energy use.
Homes with lower fossil fuel consumption and higher energy efficiency will have a better GHG rating.
A certified NRCan energy advisor must assess and verify the home’s emissions performance.
This ensures that eligible properties contribute to reducing environmental impact while improving energy efficiency.
Energy Consumption:
A new or existing home with an NRCan EnerGuide rating that consumes at least 20% less energy (gigajoules/year) than “A Typical New House” qualifies for the 25% premium refund.
Additional Criteria:
Sagen must receive the full mortgage insurance premium and fees before issuing the partial premium refund.
The refund is calculated based on the premium paid on the Sagen-insured loan at the time of funding. If the borrower uses Sagen’s Portability Program to transfer an existing mortgage to a new energy-efficient home, the refund applies only to the increased loan amount.
The premium refund application must be submitted within 24 months of the mortgage closing date, and all supporting energy efficiency documentation must be no more than 5 years old.
How to Apply Energy Efficient Housing Program
Applying for the Sagen Energy Efficient Housing Program is a straightforward process. Follow these steps to determine your eligibility and receive your 25% premium refund:
Get an Energy Audit
To qualify, your home must meet specific energy efficiency standards. We conduct a professional house energy audit to assess your home’s performance and provide an NRCan EnerGuide rating. This evaluation determines whether your home meets the necessary energy efficiency, greenhouse gas emissions, or energy consumption criteria.
Obtain Your EnerGuide Report
After the energy audit, we will provide you with an EnerGuide label and report, detailing your home’s energy usage, efficiency level, and emissions. This report is required for your premium refund application and is essential to apply for the Home Efficiency Rebate.
Submit Your Application
Once you have the necessary documentation, submit your Sagen Energy Efficient Housing Program application along with your EnerGuide report. Ensure that the application is submitted within 24 months of your mortgage closing date and that all supporting documents are no older than 5 years.
Receive Your Refund
After approval, Sagen will process your partial premium refund, which is based on the premium paid on your Sagen-insured loan. If you are using Sagen’s Portability Program, the refund will apply only to the increased loan amount.
We will guide you through every step of the process, from conducting the house energy audit to helping you submit your application. Our team is here to ensure you meet the eligibility criteria and maximize your savings through the Sagen Energy Efficient Housing Program and the Home Efficiency Rebate.
Home Energy Audit is the first step to start your retrofit grant
The Sagen Energy Efficient Housing Program offers homeowners a valuable opportunity to reduce their mortgage insurance costs while investing in energy efficiency.
By meeting the program’s criteria whether through certified energy efficiency, lower greenhouse gas emissions, or reduced energy consumption you can qualify for a 25% premium refund and take advantage of the Home Efficiency Rebate.
Our team is here to support you at every stage, from conducting a house energy audit to guiding you through the application process.
Take the first step toward a more energy efficient home and start saving today!
Book Your Energy Audit
Home Energy Audit is the first step to apply for any energy retrofit rebate.
