Homeowners find gold by going green
Financial incentives for eco-friendly home investments
Denise Deveau, Canwest News Service
Financial incentives for eco-friendly home investments
Denise Deveau, Canwest News Service
Published: Monday, March 30, 2009
Kaz Ehara/CanwestMark Raes, with son Oliver, discovered he was eligible for a furnace replacement rebate during a home energy audit.
It seems like governments and financial institutions alike are doing what they can to keep homeowners thinking green. From rebate programs to new mortgage offerings, financing a home purchase or renovation can be a wonderful opportunity to cash in on your green intentions.
For homeowner Mark Raes, when the time came to replace a 25-year-old furnace in his recently purchased home in Toronto, he decided to get an energy audit done just to check out how energy-efficient the house actually was. In the process he discovered that not only could he get a sizable rebate on the furnace replacement, other upgrades would also qualify.
"So instead of just one thing, we decided to do four all at once," he says. After investing $9,000 in a furnace, attic insulation, a tankless hot water heater and air conditioner, he ended up qualifying for $3,200 in rebates from the provincial and federal governments. And his energy bills now come in at 30% less than before.
It just goes to show that when home purchasers play their cards right, they can tap into a number of incentives to help them start on a greener path.
Above the rebates, borrowers can even get a bit of help from their lenders. TD Canada Trust's Green Mortgage, for example, offers a 1% cash-back to be used for Energy Star qualified purchases or any renovations/ upgrades that make the home more energy efficient.
"Add that to the government incentives, and that can make a big difference," says Joan Dal Bianco, vice-president of Real Estate Secured Lending for TD in Toronto. "When every penny counts, $2,000 cash on a $200,000 mortgage can go a long way to taking care of some big ticket item appliances or repairs."
Despite the fact that green building projects can come at a premium, the price difference can easily be realized within a year through energy savings, Ms. Dal Bianco says. "Our studies have shown that people are now willing to spend more on a green home because of the energy savings they get."
Looking at green options can also help the resale cause. According to a recent RBC Financial Group-sponsored Ipsos study, more than 75% of homeowners believe that green home improvements will increase the value of their home. "A good energy rating [on a home] is definitely becoming an important selling and buying feature for consumers," says Bernice Dunsby, senior manager, home equity financing for RBC in Toronto.
RBC offers a choice of Energy Saver mortgage and loan products that provide homeowners a partial rebate on a home energy audit, or in some cases, a discounted interest rate. "It all depends on the size and scope of the project you are willing to undertake," Ms. Dunsby says.
Homeowners should be aware of the fact that home energy audits will soon a must if you want to sell your property. Initiatives such as Ontario's Green Energy Act will require anyone listing a home to conduct a home energy audit. "The government is doing what it can to make sure that every homeowner can achieve a good rating and is as energy efficient as possible," says Peter Hwang, president and CEO of EnWise in Toronto.
For those new to the audit process, a certified professional performs a pre-retrofit audit on your home to assess and rank your energy rating and pinpoint areas for improvements. Different energy-saving investments qualify for various rebate levels. For example, a high-efficiency furnace could qualify for $1,125 in combined government rebates; attic insulation, $1,200; an energy-efficient air conditioner, $600; and a tankless hot water heater, $500.
When the work is complete (you have 18 months from the pre-retrofit audit date to finish your retrofits), a second audit is done to verify the improved performance. The homeowner can then apply for a rebate under the federal government's ecoENERGY Program to a maximum of $5,000 and, depending on the province, an additional rebate from the provincial government. (The Ontario Home Energy Savings Program, for example, matches the federal rebate dollar for dollar.) "We encourage people to wait the full 18 months before applying in case they want to do extra things in that time frame, and you can only apply for it once," Mr. Hwang advises.
This year, homeowners can benefit even more by taking advantage of the federal government's Home Renovation Tax Credit of up to $1,350. They can also leverage a number of manufacturer and utility rebates.
So, although some might think that going green comes at a premium, with available incentives and rebates -- along with affordable financing options and improved energy savings -- doing the right thing for the environment when financing your home isn't quite so expensive after all.
Kaz Ehara/CanwestMark Raes, with son Oliver, discovered he was eligible for a furnace replacement rebate during a home energy audit.
It seems like governments and financial institutions alike are doing what they can to keep homeowners thinking green. From rebate programs to new mortgage offerings, financing a home purchase or renovation can be a wonderful opportunity to cash in on your green intentions.
For homeowner Mark Raes, when the time came to replace a 25-year-old furnace in his recently purchased home in Toronto, he decided to get an energy audit done just to check out how energy-efficient the house actually was. In the process he discovered that not only could he get a sizable rebate on the furnace replacement, other upgrades would also qualify.
"So instead of just one thing, we decided to do four all at once," he says. After investing $9,000 in a furnace, attic insulation, a tankless hot water heater and air conditioner, he ended up qualifying for $3,200 in rebates from the provincial and federal governments. And his energy bills now come in at 30% less than before.
It just goes to show that when home purchasers play their cards right, they can tap into a number of incentives to help them start on a greener path.
Above the rebates, borrowers can even get a bit of help from their lenders. TD Canada Trust's Green Mortgage, for example, offers a 1% cash-back to be used for Energy Star qualified purchases or any renovations/ upgrades that make the home more energy efficient.
"Add that to the government incentives, and that can make a big difference," says Joan Dal Bianco, vice-president of Real Estate Secured Lending for TD in Toronto. "When every penny counts, $2,000 cash on a $200,000 mortgage can go a long way to taking care of some big ticket item appliances or repairs."
Despite the fact that green building projects can come at a premium, the price difference can easily be realized within a year through energy savings, Ms. Dal Bianco says. "Our studies have shown that people are now willing to spend more on a green home because of the energy savings they get."
Looking at green options can also help the resale cause. According to a recent RBC Financial Group-sponsored Ipsos study, more than 75% of homeowners believe that green home improvements will increase the value of their home. "A good energy rating [on a home] is definitely becoming an important selling and buying feature for consumers," says Bernice Dunsby, senior manager, home equity financing for RBC in Toronto.
RBC offers a choice of Energy Saver mortgage and loan products that provide homeowners a partial rebate on a home energy audit, or in some cases, a discounted interest rate. "It all depends on the size and scope of the project you are willing to undertake," Ms. Dunsby says.
Homeowners should be aware of the fact that home energy audits will soon a must if you want to sell your property. Initiatives such as Ontario's Green Energy Act will require anyone listing a home to conduct a home energy audit. "The government is doing what it can to make sure that every homeowner can achieve a good rating and is as energy efficient as possible," says Peter Hwang, president and CEO of EnWise in Toronto.
For those new to the audit process, a certified professional performs a pre-retrofit audit on your home to assess and rank your energy rating and pinpoint areas for improvements. Different energy-saving investments qualify for various rebate levels. For example, a high-efficiency furnace could qualify for $1,125 in combined government rebates; attic insulation, $1,200; an energy-efficient air conditioner, $600; and a tankless hot water heater, $500.
When the work is complete (you have 18 months from the pre-retrofit audit date to finish your retrofits), a second audit is done to verify the improved performance. The homeowner can then apply for a rebate under the federal government's ecoENERGY Program to a maximum of $5,000 and, depending on the province, an additional rebate from the provincial government. (The Ontario Home Energy Savings Program, for example, matches the federal rebate dollar for dollar.) "We encourage people to wait the full 18 months before applying in case they want to do extra things in that time frame, and you can only apply for it once," Mr. Hwang advises.
This year, homeowners can benefit even more by taking advantage of the federal government's Home Renovation Tax Credit of up to $1,350. They can also leverage a number of manufacturer and utility rebates.
So, although some might think that going green comes at a premium, with available incentives and rebates -- along with affordable financing options and improved energy savings -- doing the right thing for the environment when financing your home isn't quite so expensive after all.
