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Save on insurance premiums with an eco-friendly home

July 21 2017 by Multi-Prêts Hypothèques
What you'll learn
  • Mortgage loan insurance
  • Home insurance

There are many ways to reduce insurance costs when it comes to your home. Here’s how an eco-friendly home could help you save. 

Save on mortgage loan insurance

The government requires lenders to insure all loans with down payments of less than 20%. The loan can be insured by the Canada Mortgage and Housing Corporation, Genworth or Canada Guaranty. The premium is determined by a percentage that varies according to the value of the loan in regards to the purchase price. Read our article to find out more.

The CMHC offers a Green Home program. Thanks to this initiative, “purchasing an energy-efficient home or purchasing an existing home and making energy-efficient improvements can help you save considerably”. 

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For new purchases, eligibility requirements are as follows:

  • The energy efficiency rating must be 82 or higher on the NRCan (Natural Resources Canada) scale. An old, unrenovated home usually rates between 0 and 50. A new energy-efficient home ranges between 81 and 85. The maximum rating is 100. To find out more, visit NRCan’s website.
  • The residence must conform with an energy-efficient home building program recognized by CMHC.  

If you’re renovating your home, the requirements are as follows:

  • NRCan must conduct an energy assessment, before and after the energy efficiency improvements are made.
  • Renovations must improve the energy rating by at least 5 points.  
  • Once work is completed, your property’s energy rating must reach at least 40.

Genworth offers a similar program. In both cases, you’re looking at considerable savings on your premium (15% to 25%).  

A Multi-Prêts broker can refer you to an insurance expert to guide you. 

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Save on home insurance

Many home insurers offer 15% discounts or cash back for eco-friendly certified homes.

In most cases, the property must be LEED (Leadership in Energy and Environmental Design) certified. This certification accounts for: water consumption efficiency, energy efficiency, heating efficiency, use of locally sourced materials and reuse of surpluses.

A Multi-Prêts broker can refer you to a home insurance expert to guide you. If you are thinking about renovating your house, read our article on programs and tax credits offered in Quebec

Key takeaways
  • La SCHL offre le programme Maison écolo. Grâce à cette initiative, « acheter une habitation écoénergétique ou effectuer des rénovations visant à économiser l’énergie peut permettre de réaliser d’importantes économies ».
  • Plusieurs assureurs offrent des rabais d’environ 15 % ou des remises en argent pour des maisons certifiées écologiques.