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Green mortgages in Canada are designed to encourage the purchase or construction of energy-efficient and environmentally sustainable homes. These mortgages often come with benefits such as lower interest rates, cashback incentives, extended amortization options, and support for energy-efficient upgrades. They align with Canada's commitment to reducing greenhouse gas emissions and promoting sustainable living.
| Program Name | Provider | Features & Benefits | Eligibility & Notes |
|---|---|---|---|
| RBC Green Home Mortgage | Royal Bank of Canada (RBC) | - Financing for new, pre-construction energy-efficient homes<br>- Firm mortgage approval throughout construction<br>- Customized advice and special lending programs<br>- Extended amortization up to 35 years for lower monthly payments<br>- Up to $3,000 cash incentive for qualifying homes<br>- Online application process | For homes built with high R-value insulation, energy-efficient windows, lighting, heating/cooling systems, and onsite renewables<br>Supports energy-efficient upgrades and builder sustainability goals |
| Canada Greener Homes Loan | Canadian Government (via CMHC) | - Interest-free financing up to $40,000<br>- 10-year repayment term<br>- Supports eligible energy-efficient retrofits recommended by an energy advisor<br>- Portion of loan can be delivered upfront for contractor deposits | For retrofit projects not yet started<br>Loan amount based on quotes and eligible retrofit costs<br>One loan per eligible property and homeowner |
| Desjardins Sustainable Home Program | Desjardins | - Cashback up to $2,000 for new sustainable constructions<br>- Cashback up to $500 for sustainable renovations linked to provincial programs like Rénoclimat<br>- Financing starting at 4.64% interest rate<br>- Financing applies to minimum $125,000 purchase or $10,000 renovations<br>- Supports homes meeting Novoclimat, ENERGY STAR®, or LEED® standards | Available for new build and renovation projects that meet recognized green standards<br>Subject to credit approval |
These features result in homes that consume less energy and produce fewer greenhouse gas emissions compared to traditional builds.
Green mortgages in Canada offer substantial benefits for homeowners and builders focused on energy efficiency and sustainability. RBC’s Green Home Mortgage stands out for new construction financing with cashback incentives and extended amortization, while the Canada Greener Homes Loan provides interest-free financing for retrofits. Provincial programs like Desjardins’ Sustainable Home Program complement these options with cashback and financing for renovations. Working with knowledgeable brokers and using platforms like theratefinder can help Canadians find the best green mortgage solutions to save money and reduce their carbon footprint.