Mortgage Advice – July 1 2025
Grant? Gone. Loan? Super‑charged.
Ottawa closed the Greener Homes Grant to new applicants this spring but topped up the interest‑free Greener Homes Loan (CGHL) with an extra $600 million so homeowners can still access up to $40 000 for energy‑saving retrofits.
Three funding combos that actually add up
| Scenario | How to stack the dollars | Monthly cost snapshot* |
|---|---|---|
| Refi + CGHL (equity‑rich owner) | Refinance first mortgage, pull $30 k cash out, layer CGHL $40 k for solar | Refi portion @ 4.5 % ≈ $168; CGHL @ 0 % ≈ $333 → $501 |
| HELOC + CGHL (planning staged upgrades) | HELOC interest‑only draw for $10 k insulation; CGHL for heat pump | HELOC @ prime + 0.5 % (3.25 %) ≈ $27; CGHL ≈ $333 → $360 |
| 2nd mortgage + CGHL (self‑employed, bruised credit) | Private 2nd @ 9 % for upfront audit fees; CGHL funds renos | 2nd‑mortgage payment ≈ $80; CGHL ≈ $333 → $413 |
*Assumes $40 k CGHL over 10 years; figures rounded for illustration.
Will the savings offset the payments?
A typical 2 400 ft² home that cuts gas usage by 40 % and electricity by 25 % can shave ~$1 800/year off utility bills—often enough to neutralize the carrying cost of the refinance or HELOC portion by year three.
Pro tips before you hit “Apply”
- Book your EnerGuide audit early—auditors are slammed after the top‑up.
- Collect quotes: CMHC insists your upgrades match the audit recommendations.
- Line up financing first so the contractor deposit isn’t a last‑minute scramble.
Ready to make your house greener (and wallet happier)?
Let’s map a financing plan that keeps interest costs low while the sun—or heat pump—does the heavy lifting.