2021 Budget To Offer Interest-free Retrofit Loans

The 2021 federal budget proposes to provide $17.6 billion towards a green recovery to create jobs, build a clean economy, and fight and protect against climate change. The government of Canada says that climate action starts at home and deep home energy retrofits can have a big effect on emissions reduction. Budget 2021 proposes to provide $4.4 billion on a cash basis ($778.7 million on an accrual basis over five years, starting in 2021-22, with $414.1 million in future years), to the Canada Mortgage and Housing Corporation (CMHC) to help homeowners complete deep home retrofits through interest-free loans worth up to $40,000. Loans would be available to homeowners and landlords who undertake retrofits identified through an authorized EnerGuide energy assessment. In combination with available grants announced in the 2020 fall economic statement, this would help eligible participants make deeper, more costly retrofits that have the biggest impact in reducing a home's environmental footprint and energy bills. This program will also include a dedicated stream of funding to support low-income homeowners and rental properties serving low-income renters, including co-operatives and not-for-profit owned housing. The program would be available by summer 2021. It is estimated that more than 200,000 households would take advantage of this opportunity. Examples of deep retrofits include replacing oil furnaces or low-efficiency systems with a high efficiency furnace, air source heat pump, or geothermal heat pump; better wall or basement insulation and/or wall or roof panels; installing a high-efficiency water heater or on-site renewable energy like solar panels; and replacing drafty windows and doors.