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The Greener Homes Loan: Finance your home energy upgrade

Explainer

By: Stephen Wilson

Great news for Canadian homeowners—Canada is offering up to $40,000 as an interest-free loan for qualifying energy upgrades.


Contents


The Greener Homes Loan: Finance your home energy upgradeGreening your home without the upfront greenEligible upgrades for the loanGetting and using the loan

The Greener Homes Loan: Finance your home energy upgrade

Great news for Canadian homeowners—Canada is offering up to $40,000 as an interest-free loan for qualifying energy upgrades. Plus, it can be paired with other provincial, municipal, or utility rebates to make the decision to improve your home’s energy efficiency even smarter.

 

Greening your home without the upfront green

A complete energy upgrade of your home can be expensive. Spreading the cost of the renovation over its useful life can be an attractive option for homeowners looking to make significant changes. Financing lets you use your energy cost savings to pay back the loan.

 The Greener Homes Loan program addresses major challenges of the past financing options in a few critical ways. Here’s a summary:

Pros

Cons

  • Can add on top of other grants.

  • Interest-free for 10 years.

  • Unsecured personal loan on approved credit, not requiring collateral (pending a credit check).

  • Only for upgrades recommended by an energy advisor.

  • Does not apply to the work already started.

  • Can be slow to process.

 

Eligible upgrades for the loan

If you plan on doing the work yourself, you can still apply for the loan. However, some energy upgrades eligible for loans must be completed by a licensed and trained professional, including:

  • heat pumps
  • heat pump water heaters
  • furnaces* 
  • boilers*

 

*(eligible for northern and off-grid community residents only)

 

Depending on local regulations, you may be able to perform the following projects yourself:

  • renewable energy (solar photovoltaic systems)
  • air sealing
  • home insulation
  • windows and doors
  • thermostats
  • resiliency measures

Getting and using the loan

To secure this loan, simply:

  1. Get an energy audit. You can search for one here.
  2. Get quotes from contractors for the work you want to do.
  3. Apply for the loan at the Government of Canada website.
  4. Wait for the loan to be approved before you start renovations.

 

The program allows for 15% of the loan to be taken in advance, which can cover any deposits required by your contractors. The rest of the funding is available once the work is complete and verified by the post-retrofit energy audit.