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Home Buyers Government Aid Programs

 

Why do we have Government Aid Programs?

Simple, municipalities need revenues to pay their employees and to provide services to their citizens, and the primary source of obtaining and increasing that revenue is through property taxes. Therefore, municipalities apply a variety of imaginative approaches to attracting new residents to maintain or increase their property tax revenues.

Provincial and federal governments also offer home ownership programs; however, they approach it from a perspective that is primarily focused on boosting the economy, particularly through residential construction.

Let’s take a look at what’s out there.

Government aid

There are three types of government assistance:

  • Tax incentives (i.e. HBP, tax credits);
  • Financial assistance to reduce the purchase price;
  • Reductions in premiums for home or mortgage insurance.

 
Home Buyers’ Plan (HBP)
For several years now, the federal government has been facilitating property ownership through the HBP, a plan which allows every taxpayer to withdraw up to $25,000 from their registered retirement savings plan (RRSP) for the purpose of acquiring a property. However, this program is subject to repayment obligations which buyers must begin to repay in the second year following their RRSP withdrawals. A buyer has 15 years to reinvest all of the funds withdrawn from an RRSP, without interest.

First-time Home Buyers’ Tax Credit (HBTC)
The federal government offers a tax credit for the purchase of a first home. The amount for a qualifying home is $5,000 and the credit is applicable to single-family homes, townhouses, semi-detached houses, mobile homes, condos and apartments in a duplex, triplex, quadruplex or building. A share in a housing co-op is also eligible, provided that it gives you the right to own housing in the country. A disabled person who qualifies for the disability tax credit may also access the HBTC.

Green Home
A person who acquires an energy-efficient unit (a home, a unit in a small residential complex or a condo in a high-rise building) will receive a 15% or 25% reimbursement of mortgage insurance premiums as part of a program administered by CMHC. The 15% premium refund applies to homes built to the standards of Novoclimat, LEED Canada, Energy Star, Built Green Canada and certain other provincial standards outside of Quebec. The 25% rebate applies to homes built in accordance with R-2000 standards. Energy-efficient homes not built under those standards may also be eligible, however they must be assessed by an energy advisor accredited by Natural Resources Canada. These homes must achieve an EnerGuide rating of between 82 and 85 to receive a 15% premium refund, and a rating of 86 to 100 for a 25% refund. Similar standards are required for a condo acquired in a residential tower. Premium refund applications must be submitted by the borrower within two years of the closing date of the mortgage.

Energy-efficient Housing Made More Affordable with Mortgage Loan Insurance

CMHC Green Home
Energy-efficient homes can be linked to increased comfort and healthier living while improving energy efficiency reduces greenhouse gas emissions and lowers the cost of owning and maintaining your home.

CMHC Green Home offers a premium refund of up to 25% to borrowers who either buy, build or renovate for energy efficiency using CMHC-insured financing.

Am I Eligible?

Buying or Building a home

Homes built under the following building standards are automatically eligible for a partial mortgage loan insurance premium refund.

15% Premium Refund

  • Built Green™ (National)
  • ENERGY STAR® (National)
  • GreenHouse™ (ON)
  • GreenHome™ (YK)
  • LEED Canada for Homes (National)
  • Novoclimat (QC)
  • Power Smart for New Homes (MB)

 
25% Premium Refund

  • R-2000

 
Homes NOT built under an eligible building standard must be assessed by a NRCan qualified energy advisor and have a rating that complies with the following requirements:

EnerGuide Rating 0-100 Scale

15% Premium Refund

  • Rating 82 – 85

 
25% Premium Refund

  • Rating 86 – 100

 
EnerGuide Rating Gigajoules per year Scale

15% Premium Refund

  • Rating of at least 15% lower than “A Typical New House”

 
25% Premium Refund

  • Rating of at least 40% lower than “A Typical New House”

 
NRCan is introducing updates to the EnerGuide rating scale. During the transition period, provinces and territories will continue to use the 0-100 scale until they are ready to adopt the new gigajoules per year scale.

Buying a Condo
Condominium units in high rise buildings built to the LEED Canada New Construction standard (Certified, Silver, Gold and Platinum) automatically qualify for a 15% premium refund.

You may also be eligible if your building meets the following criteria:

15% Premium Refund

  • The building is designed to be 20% more energy-efficient than compliance with the applicable building code

 
25% Premium Refund

  • The building is designed to be 40% more energy-efficient than compliance with the applicable building code

 
Renovating Your Home
If you purchase an existing home and make energy-efficient improvements you may be eligible for a CMHC Green Home premium refund*. To qualify, your home must be assessed by a Natural Resources Canada (NRCan) qualified energy advisor before and after the energy efficiency improvements are made.

NRCan is introducing updates to the EnerGuide rating scale. During the transition period, provinces and territories will continue to use the 0-100 scale until they are ready to adopt the new gigajoules per year scale.

If your province has NOT adopted the new rating scale:

If Pre‐retrofit rating ≤ 55

15% Premium Refund

  • Increase rating by 10 points

 
25% Premium Refund

  • Increase rating by 20 points

 
If Pre‐retrofit rating ˃ 55

15% Premium Refund

  • Increase rating by 5 points

 
25% Premium Refund

  • Increase rating by 10 points

 
If your province has adopted the new rating scale:

If pre‐retrofit rating is 200 GJ/year or higher

15% Premium Refund

  • Decrease by 45 GJ/year

 
25% Premium Refund

  • Decrease by 90 GJ/year

 
If Pre‐Retrofit rating is lower than 200 GJ/year

15% Premium Refund

  • Decrease by 20 GJ/year

 
25% Premium Refund

  • Decrease by 45 GJ/year

 
For more information visit CMHC here or contact The Wilson Team or call 613-695-9250.

  • Terms
  • Posted Rates
  • Our Rates
  • Variable Rates
  • 3.20
  • 2.30%
  • 1 YEAR
  • 3.04%
  • 2.99%
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  • 3 YEARS
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  • 3.04%
  • 4 YEARS
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  • 3.04%
  • 5 YEARS
  • 4.94%
  • 2.89%
  • 7 YEARS
  • 5.30%
  • 3.69%
  • 10 YEARS
  • 6.10%
  • 3.74%

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