Save on insurance premiums with an eco-friendly home
by Multi-Prêts Mortgages
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”.
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.
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.
- 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.