If you purchase a newly built, energy-efficient home in Canada with CMHC-insured financing, the CMHC Eco Plus program offers a simplified way to recover part of your cost. You may qualify for a 25% partial refund on your mortgage loan insurance premium as long as your home meets the right energy standards.
Below, we explain how Eco Plus works, who qualifies, and how to make it part of your home-buying plan.
How CMHC Eco Plus Works for New Homebuyers
When your down payment is less than 20%, CMHC (or another mortgage insurer) will include a mortgage loan insurance premium in your financing. In Canada, this insurance is mandatory, and therefore an additional burden on homebuyers. Fortunately, the Eco Plus program can give you back 25% of that premium, but only if your new home passes certain energy efficiency tests.
Starting July 8, 2025, Eco Plus applies only to newly built homes that have never been occupied. Homes must come with or qualify for an energy certificate (via an approved third party or NRCan’s EnerGuide system) to prove they use significantly less energy than a typical new house.
If your home qualifies, you must submit your refund request within 24 months (2 years) of closing your mortgage.
Eco Plus Eligibility & Requirements
Here’s a breakdown of what your home must satisfy for Eco Plus eligibility:
Home status
- Must be newly built and never occupied.
- For condos, the entire building or unit must meet the energy criteria.
Energy performance
- Homes must meet certified standards such as LEED, ENERGY STAR, R-2000, or others on CMHC’s eligible list.
- Or they must perform at least 20% lower energy consumption than a “typical new house” (in gigajoules/year as per EnerGuide) to qualify.
Mortgage & property terms
- The home must be financed with a CMHC-insured mortgage.
- Purchase price or lending value must be below $1,500,000 (for most home types).
- You must submit the refund application within 24 months of mortgage closing.
Example of Savings
Let’s say your mortgage insurance premium is $12,000. If your new home qualifies under Eco Plus, you’d get back 25%, or $3,000. That money gets refunded after closing, reducing your total effective cost.
For many new-build homeowners, that refund can cover a significant portion of finishing touches or go toward closing costs.
How to Apply
- Close your mortgage as usual, using CMHC-insured financing.
- Collect your energy certificate or EnerGuide rating (or equivalent eligible certification).
- Submit your application to CMHC, along with proof of energy certification, within 2 years of your closing date.
- CMHC reviews your documentation and, if approved, issues the refund.
DeSozio Homes Is Building for the Future. Are You Ready to Move In?
If you’re looking for a new home in Ontario or Canada and want to make your purchase work harder for you, Eco Plus is one of the few programs that directly reduces borrowing costs.
At DeSozio Homes, we plan for new developments to meet these standards, so homeowners have more options when borrowing. Talk to us about our new-build homes today!
