Jan 24th, 2025: If you’re purchasing a new build with an insured mortgage, you could be missing out on some incredible savings. Many buyers are unaware of the potential refund opportunities available to them—and that’s where we’re here to help. Did you know that clients purchasing energy-efficient new builds are eligible for a 25% refund on their default insurance premium? Let’s break it down.
The Energy Efficiency Advantage
What’s the Refund?
If the new build meets current energy efficiency certifications, buyers can receive a refund of 25% on their mortgage default insurance premium. This applies to insured mortgages provided through CMHC, Sagen, and Canada Guaranty.
Why is This Important Now?
As of May 1, 2023, nearly all new builds in British Columbia must adhere to the BC Energy Step Code, which sets high energy-efficiency standards for residential construction. This means the majority of new builds in BC will qualify for this refund. In fact, many municipalities had already implemented these standards in the last five years, so homes built before 2023 may also be eligible.
Don’t Miss Out: Most Buyers Never Apply
Here’s the shocking part: 75% of eligible buyers never apply for the refund. This often happens because they’re not informed by their brokers or aren’t aware that they qualify. However, buyers have up to two years to request the refund from their mortgage insurer. For insured purchasers of new builds from the last two years, it’s worth checking your eligibility and applying now!
Who’s Eligible?
- Buyers of Energy-Efficient New Builds: The home must meet specific energy efficiency certifications listed on insurer websites. Certifications like the BC Energy Step Code ensure that homes are designed to minimize energy use.
- New Builds Purchased Within the Last Five Years: The refund applies as long as the home’s energy-efficient certification is valid. For example, a home built in 2020 and purchased in 2023 could still qualify for the refund.
- Insured Mortgages: The program is available to anyone with an insured mortgage, not just first-time homebuyers.
Benefits for Buyers and Realtors
This program offers incredible value for buyers, especially with the introduction of the new 30-year amortization rule and the $1.5M cap for insured mortgages. Not only does it put cash back into buyers’ pockets, but it’s also a fantastic selling point for realtors marketing energy-efficient new builds.
How to Apply for the Refund
The process is straightforward, and refund cheques are typically issued within 30 days of approval. Here are links to the three mortgage insurers’ programs for further details and application instructions:
- Apply for a 25% partial premium refund | CMHC
- Energy Efficient Housing Program – Sagen
- Energy-Efficient Advantage – Canada Guaranty
These websites also provide lists of eligible energy efficiency certifications to make it easier for buyers to confirm eligibility.
Final Thoughts
Energy-efficient homes aren’t just better for the environment—they’re also a smart financial choice. Whether you’re buying a new build today or purchased one in the last two years, take advantage of these programs to save money and maximize your investment. Don’t leave money on the table; reach out to our Mortgage Professionals to find out if you are eligible for your refund today!
