Canada Greener Homes Loan – Interest-Free Loans Up to $40K

If you are in the market for a new home, there is a great incentive to buy in Canada. The Canada Greener Homes Loan is an interest-free loan program that provides up to $40,000 for energy-efficient upgrades to your new home. This program can help you save money on your energy bills and make your home more comfortable. Eligible upgrades include insulation, air sealing, window replacement, and high-efficiency heating and cooling systems.

What is Canada Greener Homes Loan?

The Canada Greener Homes Loan helps eligible homeowners improve their homes’ energy efficiency by upgrading inefficient heating and cooling systems, insulation, and windows. The loan is worth up to $40,000 and can be an addition to the Canada Greener Homes Grant, available towards the costs of eligible upgrades recommended by an energy advisor.

The Canada Greener Homes loan is part of the Government of Canada’s commitment to fighting climate change and transitioning to a low-carbon economy. By upgrading your home, you can save money on your energy bills while also reducing your carbon footprint. As we all strive to do our part in combatting climate change, initiatives like the Canada Greener Homes loan help to make it easier for us to make energy-efficient choices in our homes.

Do I qualify for the Green Homes Loan?

The Canada Greener Homes Loan is open to all Canadians who are planning to make qualifying green upgrades to their homes. To be eligible for the Green Home loan, you must meet a few essential criteria.

  • It is needed to apply and be eligible first for the Canada Greener Homes Grant or provincial program for Nova Scotia and Quebec.
  • You must be a Canadian citizen or permanent resident who owns a home in Canada.
  • Your home must be your principal residence and have a pre-retrofit evaluation completed last April 01, 2020, or later.
  • Good credit history is required. In addition, you must not be under a consumer proposal, orderly payment of debt program, or bankruptcy.

Unfortunately, this loan does not apply to works not recommended by an energy advisor, those not eligible for the grant, upgrades that are already completed or have been started, and those home improvements that are not included in your application.

Is the Canada Greener Homes Loan still available?

Yes, it is. An interest-free loan from $5000 to $40,000 is also available for major renovations with a repayment term of 10 years.

What does the Canada Greener Homes Loan cover?

The Canada Greener Homes Loan is a part of the government’s efforts to help Canadians reduce their greenhouse gas emissions by making their homes more energy-efficient. Homeowners who take out a Canada Greener Homes Loan will save money on their energy bills and help fight climate change. Eligible upgrades include the following as long as recommended by an energy advisor and eligible for the grant:

Home Insulation

The program covers a wide range of home insulation improvements, including cavity wall insulation, blown-in insulation, reflective insulation, and more.

Air Sealing

By sealed, we mean filling any gaps or cracks in the walls, ceilings, and floors that let heat escape. This work can be done by a contractor, or you can do it yourself. You’ll need to provide proof of purchase indicating the costs of eligible materials and/or services in order to receive the loan.

Windows and Doors

The loan covers windows and doors with an ENERGY STAR label and meets specific performance requirements.


Eligible measures include installing a smart thermostat, which can help reduce your energy consumption and save you money on your utility bills.  

Space and water heating

The Canada Greener Homes loan covers space and water heating, including a high-efficiency furnace or boiler, a tankless water heater, or a heat pump hot water system. Spaces eligible for heating upgrades include the home’s living area, all bedrooms, basement, garage, and attic.

Renewable energy

The loan can be used for a variety of renewable energy solutions, including solar panels, wind turbines, and geothermal systems.

How To Apply for Canada Greener Homes Loan?

1. Apply to the Canada Greener Home Grant

Submit an application to the Canada Greener Homes Grant. You can apply for the loan once you are eligible for the grant.

2. Get a pre-retrofit EnerGuide evaluation

This will help you determine how energy efficient your home currently is and identify which upgrades would be most beneficial. The EnerGuide report will also be required when you apply for the loan. Be sure that the retrofits are recommended by an energy advisor.

3. Plan and get quotes

It’s important to have a clear idea of what you want to be done before you apply for the loan. The EnerGuide evaluation will include a number of recommendations from your energy advisor. You need to review those and choose the upgrade that you want to apply for your loan.

4. Submit an application

Gather all of your documents, including your property tax statement, government-issued ID with any utility bill, proof of income and employment, and the contractor’s quote. Once you’ve completed the documents, you can access the loan portal by logging in to your Canada Greener Homes Grant account. In there, you will be given additional instructions on how to activate your loan offer.

5. Complete your retrofits and keep receipts and invoices

You can now start your home improvement and energy-saving project! Be sure to keep all invoices and receipts as you will need these for your loan repayment.

6. Schedule a post-retrofit EnerGuide evaluation

Once you’ve completed the renovations, another on-site visit will be conducted to verify the work that was done and measure the resulting energy savings. The post-retrofit report will be used to calculate your loan repayment amount.

7. Receive your loan amount

The loan amount will be reviewed and deposited into your account within 10 business days after the post-retrofit evaluation has been completed.

8. Start making loan repayments

You will have 10 years to repay the full loan amount, with no interest charged. Your loan repayments will begin one year after the post-retrofit evaluation has been conducted.

How does It Help?

Making your home more energy-efficient can help you save money on your monthly energy bills, and the Canada Greener Homes Loan makes it more affordable to do so. The loan can be used for a variety of upgrades, such as adding insulation, upgrading windows and doors, or installing solar panels or a heat pump. 

Improving your home’s energy efficiency saves you money and helps reduce your carbon footprint and fight climate change. By making energy-efficient choices, we can all do our part to create a cleaner and greener future for Canada.

If you’re thinking of making energy-efficient improvements to your home, the Canada Greener Homes Loan is a great option to consider. Visit the Government of Canada website for more information on the loan program and how to apply.

But, if you’re planning to make important upgrades on your windows, feel free to contact our Eco Choice Windows experts. We have the best energy-efficient products to choose from!