If you have a CMHC-insured mortgage, you may be able to get up to 25% of your mortgage insurance premium refunded through the CMHC’s Eco Improvement Program. In this article, we will explain how to do this.
More specifically we will look at:
- What is CMHC’s Eco Improvement Program?
- How does the CMHC Eco Improvement Program work?
- Who’s eligible for the CMHC Eco Improvement Program?
- Which type of homes qualify for CMHC Eco Improvement Program?
- How to apply for the CMHC Eco Improvement plan?
- Other CMHC Programs for home buyers in Quebec
What is CMHC’s Eco Improvement Program?
The CMHC’s Eco Improvement Program is an initiative run by Canada’s Mortgage and Housing Corporation that offers a refund of up to 25% of the borrower’s CMHC mortgage insurance premium for energy-efficiency renovations completed on the home.
For example, a homeowner who paid $12,000 in CMHC mortgage insurance and then later completes qualifying energy-efficiency upgrades, such as improved insulation, high-efficiency heating, or new windows, could receive a refund of up to $3,000.
The Eco Improvement Program is part of CMHC’s broader suite of Eco programs aimed at reducing the environmental impact of housing and encouraging energy-efficient upgrades. This broader suite of Eco programs include Eco Plus, Eco Improvement, and complementary initiatives like the Canada Greener Homes Loan.
Why does the CMHC offer this?
How does the CMHC Eco Improvement Program work?
To access the Eco Improvement Program, homeowners must meet a set of eligibility and documentation requirements.
First, the property must be financed with CMHC mortgage loan insurance. It must also be an existing home, rather than a new construction. The home owner must then complete all qualifying energy-efficient renovations after within 24 months (2 years) of the mortgage closing date. In Quebec (and generally in Canada), the mortgage closing date for CMHC purposes is the date you sign the deed of sale at the notary and officially take possession of the property.
Next, the renovations themselves must result in a measurable improvement to the home’s energy efficiency. Eligible upgrades generally focus on reducing energy loss and improving efficiency through better insulation, air sealing, and energy-efficient windows, doors, and systems.
To confirm that your renovations qualify, CMHC may ask for proof of the work you completed. This will include receipts or manufacturer information. For more complex upgrades, you might also need a formal energy assessment, such as an EnerGuide Renovation Upgrade Report and the accompanying EnerGuide label. These show how much your home’s energy efficiency has improved. For smaller or simpler upgrades, receipts and product specifications are usually enough.
Buyers Tip
You can find an Registered Energy Advisor on the Natural Resources Canada website.
Typical cost: $700 to $1,200 total.
Who’s eligible for the CMHC Eco Improvement Program?
To qualify for the Eco Improvement Program, you need to meet a few key requirements:
- You must be a homeowner with a CMHC-insured mortgage.
- You must plan to spend at least $20,000 on eligible energy-efficiency upgrades. These upgrades fall into three main categories:
- Building envelope: improvements like insulation, windows, doors, roofing, attic upgrades, air sealing, and foundation work.
- Mechanical systems: upgrades to heating, ventilation, and air conditioning (HVAC) systems, including heat pumps.
- Renewable energy systems: installing solar panels, wind turbines, geothermal systems, or other renewable energy solutions.
By buying an existing home and completing these energy-efficient renovations, your objective should not only be to increase your property’s value but also contribute to reducing the environmental impact of housing.
Which type of homes qualify for CMHC Eco Improvement Program?
The CMHC Eco Improvement Program is available for existing homes (not new constructions) that are financed with CMHC-insured mortgages and where renovations improve the home’s energy efficiency. Eligible properties include a variety of residential property types, such as:
- Single-family detached homes
- Semi-detached homes
- Townhouses / row houses
- Plexes (Duplexes, triplexes, fourplexes)
- Some condos (see note below)
Buyers Tip
How to apply for the CMHC Eco Improvement plan?
To apply for the CMHC Eco Improvement Plan, we recommend that you take the following steps:
- Wait until after your mortgage closes.
- You must apply after your CMHC‑insured mortgage has closed and within 24 months of the closing date.
- Plan your renovations and confirm eligibility first.
- Not all upgrades automatically qualify. Before you spend money, check that your planned renovations fall under the eligible categories:
- Building envelope (insulation, windows, doors, air sealing, roof, attic, foundation)
- Mechanical systems (HVAC, heat pumps)
- Renewable energy systems (solar panels, wind, geothermal)
- Consider contacting an EnerGuide-registered Energy Advisor if your project is large or complex. They can confirm whether your upgrades will meet CMHC’s standards.
- Not all upgrades automatically qualify. Before you spend money, check that your planned renovations fall under the eligible categories:
- Complete the renovations
- The program only reimburses work that has already been completed. You need receipts, invoices, and any energy assessments to prove the improvements were done.
- Renovations must be finished within 24 months of your mortgage closing date.
- Gather required documents.
- CMHC Proof of your energy‑efficient renovations, such as paid invoices showing the work and amounts spent.
- If available, energy documentation like an EnerGuide Renovation Upgrade Report and EnerGuide label.
- Complete the application form.
- You’ll need: The completed CMHC Eco Improvement application form (PDF here).
- Fill in your personal, property, and mortgage details.
- You’ll also include your CMHC loan number, which you can find on your mortgage documents or by asking your lender.
- CMHC Submit your application.
- You can send the completed form and all supporting documentation to CMHC by:
- Email: [email protected]
- Fax: 1‑800‑245‑9274
- Mail: 700 Montreal Road (Suite 1000), Ottawa, Ontario, K1A 0P7
- You can send the completed form and all supporting documentation to CMHC by:
- Wait for review.
- Once submitted, CMHC will review your application and documentation to confirm eligibility and calculate your refund. If approved, you’ll receive the refund based on the premium you paid.
Buyers Tip: You may benefit from energy upgrades completed by a previous owner
This means that if you purchase a home with a CMHC-insured mortgage, you may be able to use a previous owner’s qualifying renovation documents to apply for the Eco Improvement refund. This is provided that you submit your application within 24 months of your own mortgage closing.
Other CMHC Programs for home buyers in Quebec
Home buyers in Quebec can access several other CMHC programs. These are designed to make buying or upgrading a home more affordable and energy-efficient. Here’s a quick overview:
| Program Name | What it Does | Maximum Benefit / Key Feature |
|---|---|---|
| Eco Plus Program | Offers a refund on CMHC mortgage insurance for newly built homes that meet energy efficiency standards, encouraging greener construction. | Up to 25% of the mortgage insurance premium paid |
| Green Home Loan Insurance Incentive | Reduces CMHC mortgage insurance costs for new or existing homes that achieve certain environmental performance standards. | Varies depending on energy performance rating and mortgage insurance premium |
| High-Ratio Mortgage Loan Insurance | Allows buyers with less than 20% down payment to purchase a home by insuring the mortgage, giving access to financing that might not otherwise be available. | Mortgage insurance cost varies depending on down payment percentage |
Quebec home buyers can also take advantage of federal and provincial tax credit programs that make buying a house more affordable for first time buyers. These include:
Provincial Programs (Quebec)
- Quebec Home Buyers’ Tax Credit – A non-refundable tax credit that reduces provincial income tax for first-time buyers.
- GST/QST Rebate for New Housing – Allows eligible buyers of new or substantially renovated homes to recover part of the GST and QST paid.
- Welcome Tax (Taxe de bienvenue) Assistance – Certain municipalities, such as Montreal, provide partial or full rebates of the land transfer tax for eligible buyers, especially first-time buyers with children.
Federal Programs (Canada)
- RRSP Home Buyers’ Plan (HBP) – Lets first-time buyers withdraw up to $60,000 from their RRSP tax-free to buy or build a home, repayable over 15 years.
- First Home Savings Account (FHSA) (also called CELIAPP) – A tax-free savings account for first-time buyers, with tax-deductible contributions and tax-free withdrawals for qualifying homes.
- First-Time Home Buyers’ Tax Credit (HBTC) – A non-refundable tax credit that reduces federal income tax for first-time buyers.
- GST/HST New Housing Rebate – Allows recovery of part of the GST or HST paid on the purchase or construction of a new home.
Frequently Asked Questions
Looking to buy a property in Quebec?
Are you looking to buy a property in Quebec? The best realtors know how to access financial programs that get the most value from your purchase. They leverage their networks of financial advisors, mortgage experts, and industry connections to make sure you get the best deal for you. That’s why it’s crucial to work with a specialist realtor. One who truly understands your needs and the market.
In Quebec, there are more than 17,000 agents.
At Immovision, we scan the market to find the top-performing, active agents who are the perfect fit for your specific project. Once we identify them, we connect you directly with these agents so you can make confident, informed decisions.
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