Premium Insurance Refund
Unlock up to 25% mortgage insurance premium
If you’re purchasing or renovating a home in Canada with a focus on energy efficiency, you may be eligible for a partial refund on your mortgage insurance premium through programs offered by CMHC, Sagen, and Canada Guaranty.
These premium refund initiatives are designed to encourage environmentally conscious homeownership by rewarding buyers who choose energy-efficient properties or invest in upgrades that reduce energy consumption. Whether you’re building a high-performance new home or improving an existing one, these programs can help offset your initial costs while promoting long-term sustainability.
How the rebate process works
Quick Overview of the Programs
Canada Guaranty offers a 25% refund on mortgage insurance premiums for homes that meet energy efficiency standards. Eligible properties include new builds and existing homes with qualifying upgrades. To apply, homeowners must provide proof of an EnerGuide evaluation. The refund request must be submitted within 24 months of the mortgage closing date.
Sagen offers up to a 25% refund on mortgage insurance premiums for homes that demonstrate improved energy efficiency. Eligibility requires an EnerGuide evaluation showing the home is at least 20% more energy efficient than a standard new home. Homeowners must apply within 24 months of the mortgage closing date and include all supporting documents.
CMHC’s Eco Plus Program provides a 25% refund on mortgage loan insurance premiums for energy-efficient homes. To qualify, the home must have an EnerGuide rating that is at least 20% more efficient than a typical new home. The refund application must be submitted within 24 months of the closing date, along with the required documentation.
Eligibility requirements
The following eligibility requirements serve as general guidelines across all three providers—CMHC, Sagen, and Canada Guaranty—though each may have slight variations in how specific terms are defined. To qualify for a premium insurance refund, applicants must typically meet the following criteria:
Insured Mortgage:
Your home must be financed with a mortgage that is insured by CMHC, Sagen, or Canada Guaranty.
Energy Efficiency Standard:
The home must have an EnerGuide evaluation showing it is at least 20% more energy efficient than a typical new home.
Home Type:
Both newly built homes and existing homes with eligible energy-efficient upgrades may qualify.
Documentation:
A valid EnerGuide rating label/report must be submitted as proof of efficiency.
Timeline:
The refund application must be submitted within 24 months from the date of the mortgage closing.
Rebate Amount
CMHC Eco Plus
Up to 25%
refund on the mortgage insurance premium
New to Canada Program
Up to 25%
refund based on EnerGuide performance
Energy-Efficient Advantage Program
Up to 25%
refund with qualifying EnerGuide rating
Quick Overview of the Programs
Example:
A $1,000,000 mortgage with 5% down costs $45,000 insurance premium, you will receive up to 25% refund of the premium they paid, once upgrades have been completed, along with the second Energy Assessment and application completion.
| Energy Audit Measurement | 15% Premium Refund | 25% Premium Refund |
|---|---|---|
| If the pre-retrofit rating is 200 GJ/year or higher (the post-retrofit must be no higher than 250) | Decrease by 45 GJ/Year | Decrease by 90 GJ/Yea |
| If pre-retro‑fit rating is lower than 200 GJ/year | Decrease by 20 GJ/Year | Decrease by 45 GJ/Year |
Booking Your Audit for a Premium Insurance Refund
Home Energy Audit is the first step to start your Greener Homes Retrofit Grant or to apply for other energy retrofit rebates.
Frequently asked questions
How does the premium refund process work with Canada Guaranty?
Canada Guaranty issues the approved refund (including applicable tax) within 30 business days of receiving the completed application.
25% Premium Refund Example
| Mortgage: $475,000 at 95% LTV | Premium Payable |
|---|---|
| Standard Premium Amount (95% LTV = Premium rate of 4.00%) | $19,000.00 |
| Energy-Efficient Premium Refund (25% of premium amount) | ($4,750.00) |
| Total New Premium (minus refunded amount) | $14,250.00 |
For the purpose of this example, the mortgage insurance premium does not include any applicable provincial sales tax.
Use the Insurance Premium Calculator to help you determine the applicable premium rate on an insured mortgage.
Why should I apply for CMHC Eco Plus?
Save on Premiums: Get up to 25% back on your CMHC insurance premium for energy-efficient homes.
Support Sustainability: Reduce your home’s environmental impact and energy costs.
Flexible Financing: Finance energy-efficient homes with CMHC-insured loans or apply within 2 years of your mortgage closing.
What documents are required for Sagen’s refund application?
To apply for Sagen’s premium insurance refund, you’ll need to submit a completed refund application form along with a valid EnerGuide rating report that confirms your home meets the required energy efficiency standards. Additionally, you must include documentation related to your mortgage insurance, such as the certificate number, mortgage details, and lender information.
What types of properties are eligible for Sagen’s mortgage insurance premium refund?
To be eligible, the property must meet the following criteria:
Maximum of 4 units, with 1 unit required to be owner-occupied.
New construction must be covered by a lender-approved New Home Warranty Program.
Existing resale properties are eligible.
The property must be a readily marketable residential dwelling located in markets with demonstrated ongoing resale demand.
The estimated remaining economic life of the property should be at least 25 years.
For properties with 3 or 4 units, they must also meet the following additional criteria:
Municipal zoning must be in place.
Each unit must be fully self-contained.