What is a home renovation government loan?
In Canada, there are several government programs and loans available to assist homeowners with home renovations. These programs are designed to help improve energy efficiency, accessibility, and overall home quality.
- Canada Greener Homes Grant to help homeowners make their homes more energy-efficient. Grants up to $5,000 to help cover the cost of eligible home improvements.
- Canada Greener Homes Loan to provide interest-free financing for home energy retrofits. Interest-free loans between $5,000 and $40,000 for eligible retrofits.
- Home Accessibility Tax Credit (HATC) to help individuals 65 years and older, and those eligible for the Disability Tax Credit, make their homes more accessible. Tax credit of 15% of eligible expenses, up to a maximum of $10,000 per year.
- Various provinces and territories offer additional programs and incentives for home renovations:
- Some municipalities offer their own programs and incentives for home renovations, such as property tax credits, grants, and low-interest loans for specific types of home improvements, like energy efficiency upgrades or heritage home restorations.
- CMHC Green Home Program to encourage homeowners to buy, build, or renovate for energy efficiency using CMHC-insured financing. A refund of up to 25% of the CMHC mortgage loan insurance premium.
Home loan calculations for 20 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 400,000 | 4.65% | 187,550 |
| 400,000 | 4.65% | 187,550 |
| 400,000 | 4.65% | 187,550 |
| 500,000 | 5.15% | 259,646 |
| 500,000 | 5.15% | 259,646 |
| 500,000 | 5.15% | 259,646 |
| 600,000 | 5.65% | 341,825 |
| 600,000 | 5.65% | 341,825 |
| 600,000 | 5.65% | 341,825 |
| 700,000 | 6.15% | 434,088 |
| 700,000 | 6.15% | 434,088 |
| 700,000 | 6.15% | 434,088 |
What types home loans for renovation can I get in Canada?
For this purpose you can get the following types of loans:
- Home Equity Line of Credit (HELOC). A revolving line of credit secured by the equity in your home. It allows you to borrow up to a certain limit and pay interest only on the amount borrowed.
- Home Equity Loan. A lump-sum loan secured by the equity in your home. You repay it over a fixed term with fixed monthly payments.
- Mortgage Refinance. Refinancing your existing mortgage to access additional funds for renovation.
- Purchase Plus Improvements Mortgage. A mortgage option for homebuyers that includes the cost of renovations in the mortgage amount.
- Personal Loan. An unsecured loan that can be used for home renovations.
You can also see the similar FAQ about:
- CIBC mortgage advisor salary
- CIBC mortgage disability insurance offer
- CIBC mortgage discharge fee
- CIBC mortgage prepayment charge
- CIBC mortgage statement payout request: how to make
Details of companies offering the financial services:
Clover Mortgage
Head office’s address: 7 City Centre Dr Suite 150, Mississauga, ON L5B 1M5
Contact center: 1-416-674-6222
Web-site: https://clovermortgage.ca/
BHM Financial Group
Head office’s address: 1090 Avenue Pratt 1090 Avenue Pratt, Outremont, Montreal, QC
Contact center: 877-787-1682
Web-site: https://www.bhmfinancial.com
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004