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Newly Built Homes

Benefits of Purchasing a Newly Built Home

CMHC, Sagen, and Canada Guaranty all offer programs that reward homebuyers who choose energy-efficient properties by providing a partial refund on their mortgage insurance premium. These programs encourage sustainable housing by recognizing homes that meet higher energy performance standards, whether through new construction or upgrades to existing properties.

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The new 30-year amortization option allows buyers of newly built homes with high-ratio insured mortgages to extend their repayment period from 25 to 30 years. By lowering monthly mortgage payments, buyers not only make new construction more affordable but also increase their borrowing capacity, enabling them to qualify for a higher purchase price.

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An insured high-ratio mortgage is a home loan where the buyer’s down payment is less than 20% of the purchase price, making the loan-to-value ratio more than 80%. Because of the higher risk to the lender, the mortgage must be covered by default insurance from providers like CMHC, Sagen, or Canada Guaranty, with the insurance premium added to the mortgage or paid upfront.

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Refund on Mortgage Insurance Premium

Refund Amount

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All three offer a 25% partial refund on the mortgage insurance premium for homes meeting energy-efficiency standards:

  • CMHC Eco Plus – 25% of CMHC mortgage loan insurance premium 

  • Sagen Energy-Efficient Housing Program – up to 25% refund of Sagen’s mortgage insurance premium 

  • Canada Guaranty Energy-Efficient Advantage – 25% premium refund of Canada Guaranty’s mortgage insurance 

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Eligibility Criteria & Qualified Properties

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CMHC Eco Plus

  • Applies to newly built homes only (never occupied; condos with allowed interim occupancy are OK) 

  • Eligible if one of the following:

    • Home holds an eligible third-party energy-efficiency certification, OR

    • EnerGuide rating showing ≥20% lower energy consumption than a Typical New House 

 

Sagen Program

  • Applies to new or existing homes, including renovations to make them more efficient 

  • Qualifications:

    • Eligible certifications, OR

    • EnerGuide rating:

      • 82–85 → 15% refund

      • 86–100 → 25% refund

    • Or in GJ/year terms, reduction compared to typical new home 

 

Canada Guaranty Energy-Efficient Advantage

  • Applies to new or existing homes and energy-efficient improvements 

  • Qualifications:

    • Eligible certifications, OR

    • ≥20% lower energy consumption (EnerGuide, NRCan) than a Typical New House 

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Key Differences

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Types of Homes Eligible

  • CMHC: Newly built homes only

  • Sagen & Canada Guaranty: New builds, existing homes, and renovations

 

Energy Rating Tiers

  • CMHC & Canada Guaranty: Standardized requirement of ≥20% energy consumption reduction

  • Sagen: Tiered rewards — 15% for moderate efficiency; 25% for top-tier efficiency (EnerGuide ≥86 or equivalent)

 

Processing Speed

  • Canada Guaranty: Refunds issued within 8–12 weeks of application acceptance

  • CMHC & Sagen: No explicit timeline stated in available sources

 

Summary Comparison

  • CMHC Eco Plus:

    • New builds only

    • 25% refund

    • Certifications or ≥20% EnerGuide savings

    • Apply within 2 years

  • Sagen:

    • New or existing homes, including renovations

    • Tiered refund: 15% or 25% based on efficiency

    • Certifications or EnerGuide thresholds (82–85 vs. 86–100)

    • Apply within 2 years

  • Canada Guaranty:

    • New builds and renovations

    • 25% refund

    • Certifications or ≥20% EnerGuide savings

    • Apply within 2 years; refund processed in 8–12 weeks

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Bottom Line

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While all three insurers (CMHC, Sagen, Canada Guaranty) offer energy-efficiency premium refunds—typically at 25%—the programs differ in eligibility, evaluation thresholds, and processing steps:

  • Choose CMHC if you're buying a brand-new home and want a streamlined, certification-based route.

  • Go with Sagen if you’re renovating or own an existing property and can meet tiered efficiency thresholds leveraging EnerGuide.

  • Look at Canada Guaranty if you want flexibility (new or existing), with a clear and relatively fast refund timeline.

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