The Short Answer
- In most cases, no — Canadian lenders do not offer a discounted mortgage rate for energy-efficient homes.
- The actual savings come from a different lever: the CMHC Eco Plus program refunds 25% of your CMHC mortgage loan insurance premium when you buy or build a qualifying energy-efficient home.
- On a typical $600,000 insured mortgage with 10% down, that refund is worth roughly $3,500 to $4,200 back to the buyer.
- Provincial programs — Ontario’s Home Renovation Savings, CleanBC, Quebec’s LogisVert — stack separately and can add $5,000 to $19,000 more, mostly for heat pumps and envelope upgrades.
- To qualify for the federal refund you need CMHC-insured financing, an EnerGuide rating from a Natural Resources Canada–certified energy advisor, and an application filed within 24 months of closing.
Why this question matters in 2026
Two things changed for Canadian homeowners this past year, and most people only noticed one of them.
The first is the headline news: the Canada Greener Homes Grant closed to new applicants in 2024, and the follow-on Greener Homes Loan closed to new applications in 2025. Suddenly the federal program everyone had been hearing about was gone.
The second is quieter. The CMHC Eco Plus refund — a real, dollar-value benefit tied directly to your mortgage — has remained open the entire time. It is the one piece of the “green mortgage” puzzle most Canadians do not know exists.
This guide walks through what is actually available in 2026, what a “green mortgage” really means in Canada, and how the math works for both new builds and retrofits. To compare options across multiple lenders, you can work with an independent mortgage broker.
Find your situation in 30 seconds
Path A · New build
You are buying a brand-new home built to energy-efficient standards. The CMHC Eco Plus refund is your main lever. Skip to the section on how Eco Plus works, then check the new-build comparison.
Path B · Retrofit on purchase
You are buying an existing home and planning energy retrofits within two years. You may qualify for the CMHC Eco Improvement refund on the mortgage side, plus provincial heat-pump and insulation rebates.
Path C · Already own
You already own your home and want to fund a heat pump, new windows, or insulation. Your best route is usually a refinance or home equity line of credit paired with provincial rebates.
Path D · Just exploring
You are simply curious about lender “green mortgage” rate discounts. The short answer is in the Quick Answer above, and the bank-products question is covered in the FAQ.
Not sure where you fit? Get an instant pre-approval certificate and a Pegasus broker can map your specific situation.
How CMHC Eco Plus actually works
A quick definition: a mortgage loan insurance premium, also called an MLI premium, is the one-time charge added to your mortgage if your down payment is less than 20% of the home’s price. It typically ranges from 2.8% to 4.0% of the loan amount and gets added to your mortgage balance, not paid in cash. The Eco Plus refund returns 25% of that premium directly to you.
The program has two variants. Eco Plus applies to newly built energy-efficient homes that meet a recognized certification — R-2000, ENERGY STAR for New Homes, BUILT GREEN Gold or Platinum, or an EnerGuide rating showing at least 20% better energy performance than code. Eco Improvement applies when you buy an existing home and complete qualifying energy upgrades, measured by a pre-retrofit and post-retrofit EnerGuide assessment from a Natural Resources Canada–certified energy advisor.
You have 24 months from your mortgage closing date to file the refund application directly with CMHC. You can estimate your CMHC insurance premium before applying to see what 25% of it could be worth.
Province-by-province incentives stack
| Province / Federal | Program | Max value | Type |
|---|---|---|---|
| Ontario | Home Renovation Savings (HRS) | up to $12,000 | Heat pump rebate |
| British Columbia | CleanBC Better Homes | up to $19,000 | Heat pump · windows |
| Quebec | LogisVert + Rénoclimat | varies by measure | Equipment + envelope |
| Alberta | Clean Energy Improvement Program (CEIP) | low-interest financing | Property-tax-bill loan |
| Federal | Oil-to-Heat-Pump Affordability (OHPA) | up to $15,000 | Income-tested grant |
| Federal | CMHC Eco Plus / Eco Improvement | 25% MLI refund | Mortgage insurance refund |
In Ontario, the Home Renovation Savings Program (HRS) is the current vehicle, offering up to $7,500 for cold-climate air-source heat pumps and up to $12,000 for ground-source (geothermal) heat pumps. The program is confirmed through November 2026 but can close earlier without notice.
In British Columbia, CleanBC Better Homes provides up to $19,000 for heat pumps and $9,500 for high-performance windows, with higher rebate tiers for income-qualified households.
Quebec uses two separate programs: LogisVert covers equipment such as heat pumps and smart thermostats, while Rénoclimat handles envelope upgrades like insulation and windows. Both require work by approved contractors.
Alberta’s main tool is the Clean Energy Improvement Program (CEIP), which is low-interest financing attached to your property tax bill rather than a direct rebate. A federal program, the Oil-to-Heat-Pump Affordability Program (OHPA), provides up to $15,000 for low-to-median income households converting from oil heating to a cold-climate heat pump.
Stacking is usually permitted across federal and provincial programs, but rules vary. You can model the impact on your mortgage payment with the Pegasus refinance calculator.
How to claim your green mortgage refund, step by step
This six-step workflow applies whether you are building new or retrofitting an existing home. The order matters — skipping a step often kills the refund entirely.
- 1Book a pre-retrofit EnerGuide assessmentIf you are retrofitting, a certified energy advisor measures your home’s current energy performance and provides an EnerGuide label. This baseline is required for the Eco Improvement refund. Skipping it is the single most common reason applications get rejected.
- 2Confirm your mortgage is CMHC-insuredOnly mortgages insured through CMHC qualify for Eco Plus or Eco Improvement. Mortgages insured by Sagen or Canada Guaranty (Canada’s other two mortgage insurers) follow their own programs with different rules.
- 3Complete the qualifying workFor new builds, this means closing on a home that holds a recognized certification — R-2000, ENERGY STAR, or BUILT GREEN Gold or higher. For retrofits, this means completing the upgrades identified in your pre-retrofit report.
- 4Book a post-retrofit EnerGuide assessment if applicableThe post-retrofit rating determines your refund tier — 15% or 25%, depending on the energy performance improvement.
- 5Submit your application to CMHC within 24 monthsEco Plus or Eco Improvement applications go directly to CMHC. CMHC currently reports processing times of around 24 weeks.
- 6Apply for any provincial rebates separatelyThese are not handled through CMHC and have their own application portals and deadlines.
New build vs retrofit: which path saves more
The reason is structural. New builds rely almost entirely on the federal Eco Plus refund — roughly 25% of one MLI premium. Retrofits unlock both the Eco Improvement refund on the mortgage side and provincial program dollars on the equipment side, especially heat pumps where Ontario’s HRS can contribute up to $12,000 on its own.
That does not make new builds the wrong choice. Energy-efficient new homes typically have lower operating costs, higher resale value, and stronger comfort year-round. The point is that incentive dollars alone should not be the deciding factor — if you are weighing equity and renovation costs, the home equity calculator can help you size a retrofit borrowing strategy.
Common mistakes Canadians make with green mortgage incentives
- Skipping the pre-retrofit EnerGuide assessment. Without a documented baseline rating, the Eco Improvement refund cannot be calculated. Always book the assessment before any work starts.
- Missing the 24-month filing window. CMHC requires the Eco Plus or Eco Improvement application within two years of your mortgage closing date. Calendar this on closing day.
- Assuming the Greener Homes Grant is still open. The grant closed in 2024 and the follow-on loan closed to new applicants in 2025. Older blog posts that reference it are out of date.
- Buying equipment that is not on the certified product list. Heat pumps must be cold-climate models from the NRCan qualified products list to qualify for most provincial rebates. A non-listed unit is almost always disqualified.
- Using uninsured financing and expecting the federal refund. The CMHC refund is calculated against a CMHC insurance premium. If you put 20% or more down and skip mortgage insurance, there is no premium to refund.
- Treating federal and provincial programs as either/or. Most homeowners can layer the CMHC refund with their province’s rebate program. The two streams have separate applications and separate timelines.
When the file is complex — a note for unconventional borrowers
If your mortgage file is not straightforward — irregular income, recent credit events, or a non-traditional property — the order of operations changes. The mortgage structure has to come first, and the Eco Plus refund only becomes a real option once the financing pathway is clear. For complex files, working with Razi Khan, Founder and Mortgage Broker at Pegasus, can help map both the mortgage and the green incentive layer in the right sequence.
Green mortgage Canada FAQ
Do energy-efficient homes get lower mortgage rates in Canada?
How much money do I actually get back from the CMHC Eco Plus program?
Is the Canada Greener Homes Grant still available in 2026?
Can I roll the cost of a heat pump or solar panels into my mortgage refinance?
What EnerGuide rating do I need to qualify for the Eco Plus refund?
Can I stack the CMHC refund with my province’s heat pump rebate?
How long do I have to apply for the Eco Plus refund after I close on my home?
Do Canadian banks like RBC, TD, or BMO offer real green mortgage discounts?
Find out what you qualify for in 15 minutes
Energy-efficient homes do not typically come with a lower mortgage rate in Canada, but they can come with thousands of dollars in real refunds and rebates if you understand the stack. The right next step is a personalized conversation.
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & References
- CMHC Eco Plus — Apply for a 25% Partial Premium Refund · cmhc-schl.gc.ca
- CMHC Eco Products for Lenders — Underwriting Reference · cmhc-schl.gc.ca
- Canada Greener Homes Initiative — Natural Resources Canada · natural-resources.canada.ca
- Ontario Home Renovation Savings Program — Save on Energy · saveonenergy.ca
- CleanBC Better Homes & Home Renovation Rebate · betterhomesbc.ca
- Oil-to-Heat-Pump Affordability Program (OHPA) · natural-resources.canada.ca
- 2026 Canadian Green Building Grants & Incentives Guide — Ecohome · ecohome.net
- BUILT GREEN Canada — Mortgage Rebates · builtgreencanada.ca