A Guide to the New $40,000 Loan Program to Help With Deep Retrofit Projects

In response to increasing concerns about global environmentalism and what can be done to further current projects, the Government of Canada announced in June 2021 that a budget provision would allow a new interest-free loan program to assist homeowners and landlords who undertake deeper, more costly retrofits, such as replacing oil furnaces or low-efficiency heating systems with a high-efficiency furnace or air- or ground-source heat pump, boosting insulation of the house, replacing windows and doors, or installing a high-efficiency water heater or onsite renewable energy system like solar panels.

This program provides homeowners with the opportunity to receive an interest-free loan of up to $40,000 for deep home energy retrofits. We’ve created this comprehensive guide to help introduce you to the program and the steps you can take to learn how to build a green home.

This initiative is designed for all eligible homeowners in Canada, regardless of where they live. Most property types are eligible. However, owners of new homes (up to six months old) are ineligible for the grant.

One eligible homeowner from each household can register for this loan if you are able to provide proof of ownership of the property with your property tax bill number (found on your municipal property documents) and valid proof that the property is your primary residence, using a driver's license or government-issued ID bearing your address.

This program is also open to other parties, including Indigenous governments or organizations, housing management bodies and other representative organizations with formal partnerships with the Indigenous governments. Applicants falling into this category can register multiple homes outside of their primary residence so long as those homes are registered to the applicant and are currently housing an Indigenous household. 

For those currently living in northern and off-grid Canadian communities, there are different green initiative grants and loan programs to help you build a greener home while considering the unique challenges you face. 

 As an eligible homeowner, you’ll be able to claim two specific benefits through this program:

You may claim up to $5,000 total for the implementation of eligible retrofits done to Canadian government standards and completed after December 1, 2020.

As of now, the new Canadian Greener Homes Grant will cover a variety of projects and products. You can complete one project or a combination of projects following the suggestions of your environmental advisor on how to build a green home. The total should not exceed $5,000.

Some of the areas covered by this loan program include:

Photovoltaic solar panels are installed to provide a renewable energy source.

While there is still more information to come regarding Canada’s newest green program, everyone can begin to take the steps to create a greener home today. 

Foam Comfort takes pride in providing high-quality thermal insulation services while maintaining environmentally friendly practices as a foundation of our work. 

For over 15 years, we’ve helped countless residential and commercial customers find the best eco-friendly insulation solutions available. 

 Call us at (416) 410-0961 or contact our expert team today for a free estimate or to learn more about our services.