With the announcement of the 2009 budget, the Canadian government has added another value add program to help Canadian homeowners, the Home Renovation Tax Credit (HRTC). Tax credit is only available for renos completed within the next 12 months.
Even better, you can combine the above HRTC with existing government rebates applicable to energy efficient home improvements to save even more money!!
If you are thinking of refinancing then selling they may qualify for some of these grants.
- As part of the 2009 budget your client may qualify for the Home Renovation Tax Credit (HRTC) of up to $1,350 for renovations completed within the next 12 months.
- Did you know that you can offer your client a 10% rebate on the mortgage insurance premium if your client refinances their home to make it more energy efficient? Plus, the extended amortization without surcharge may be available to your client. Note: this rebate also applies to customers who purchase an energy efficient home
- In addition to the 10% rebate, your client may be eligible for additional federal and provincial grants of up to $10,000 under the Canada ecoEnergy Retrofit grant
Additional benefits of the above programs:
- Simple, energy efficient improvements are attractive because they offer lower monthly utility bills
- This translates into income for your client, allowing your client to free up income to qualify or buy a more expensive home (increasing their borrowing power)
- You'll increase the resale value of your client's home-an official EnerGuide label proves you've done the work
How do these programs work?
1. Mortgage Insurer Premium Rebate
The rebate on the mortgage insurance premium applies to both Genworth and CMHC insured mortgages.
The rebate process is simple and can be done is 3 simple steps (see below):
1) Determine how energy efficient the home is:
a) If your client is purchasing a home:
§ An energy efficient R-2000 model or an energy rating of 77+
§ Documentation certifying your client's home was built under either a Genworth or CMHC eligible energy efficient building program (Built Green Gold Label Homes AB, Novoclimat, Energy Star, Power Smart, R-2000) **Please refer to the CMHC and Genworth website for a more detailed list.
b) If your client is renovating their existing home:
§ Contact an NRCan qualified energy advisor to obtain the current energy rating for your client's home. The NRCan energy advisor will provide a list of straightforward recommendations to increase your client's energy rating.
§ Documentation certifying that the improvements to your client's home has made to increase the EnerGuide rating by at least 5 points to a minimum rating of 40.
2) Apply for the Premium Refund
You will find attached both the CMHC and Genworth Premium Refund form attached to this email.
3) Submit the application along with the below documents
a) Purchasing a home:
Provide a copy of the first page of your client's EnerGuide evaluation report or R-2000 certificate.
b) Renovated existing homes:
Provide a copy of the first page of both your client's pre-improvement and post-improvement EnerGuide evaluation report.
2. ecoENERGY Retrofit
Similar to the above Mortgage Insurer rebate, the ecoENERGY Retrofit grant is based on the type and number of energy efficient improvements made, and how energy efficient the improvements are. (This grant is applied once per house).
The best part is that the improvements are not complicated! For example, installing energy-efficient windows or basement insulation and purchase like high efficiency air conditioners and hot water heaters are eligible.
Click here for more info on the ecoENERGY Retrofit grant.
3. Home Renovation Tax Credit (HRTC)
The 2009 federal budget provides a temporary incentive for Canadians to implement new renovation projects or accelerate planned future projects.
The temporary HRTC provides a 15% income tax credit on eligible home renovation expenses for work performed or goods acquired after January 27, 2009 and before February 1, 2010.
The credit may be claimed for the 2009 tax year on eligible expenses over $1,000 but not exceeding $10,000 and will provide up to $1,350 tax relief.
*Source: Canada's Economic Action Plan Budget 2009 Jan 27, 2009
Click here for more info on the HRTC.
Attached is the official HRTC brochure.
Some useful links below to offer your clients more incentives on other Canadian rebates and grants!
Details on Rebates and Incentives for Selected Energy Star Qualified Products in Canada by click here
Energy Star - Home Appliances click here
Find out more about the EnerGuide and R-2000 ratings click here
Bullfrog Power click here
info provided by :
Chad Robinson License #M08000115
President & Mortgage Broker
VERICO Best Interest Mortgages Inc License #10272
Office: 613-590-7100 Fax: 613-822-8169
16-1420 Youville Dr. Ottawa, Ontario K1C 7B3