So you’ve found your dream home (or the listing for it online), and you immediately start thinking about swapping out the original furnace, updating the insulation, or adding solar panels to the roof. That’s where CMHC’s Eco Improvement program comes in.
Energy-efficient upgrades cost money, and figuring out how to finance them alongside a home purchase is a question I get fairly often.
CMHC’s Eco Improvement program is designed exactly for this situation, and it’s worth knowing about before you close on your next home.
What is CMHC’s Eco Improvement program, exactly?
CMHC Eco Improvement aims to reduce the environmental impact of housing by supporting energy-efficient improvements.
This program lets homeowners with CMHC-insured mortgages apply for a 25% partial refund on their mortgage insurance premium after completing eligible energy-efficiency renovations.
You need to spend at least $20,000 on qualifying upgrades, which include these three categories of upgrades:
- Building envelope (e.g., insulation, windows, doors, roof, attic, air tightness and foundation)
- Mechanical systems (e.g., HVAC – Heating, Ventilation and Air Conditioning, heat pump systems)
- Renewable energy systems (e.g., solar, wind, geothermal)
Once the work is completed and verified, you can apply for a 25% refund of your mortgage insurance premium. That’s real money back in your pocket.
What Does That Look Like For Buying A Home In Nova Scotia?
To put the refund in perspective: on a $500,000 home with 10% down, your mortgage would be $450,000 and your CMHC insurance premium would be approximately $13,950 (at the 3.10% rate that applies to that down payment tier).
A 25% refund on that comes back to you as roughly $3,490.
If you put down closer to 5%, the premium rate goes up to 4.00%, which means a larger premium and a larger refund, around $4,750 on the same purchase price.
Who Qualifies for CMHC’s Eco Improvement program?
The program is available to homebuyers and homeowners who:
- Is a homeowner with CMHC-insured financing
- Minimum of $20,000 for energy-efficiency improvements that fall within any of these 3 categories:
- Building envelope (e.g., insulation, windows, doors, roof, attic, air tightness and foundation)
- Mechanical systems (e.g., HVAC – Heating, Ventilation and Air Conditioning, heat pump systems)
- Renewable energy systems (e.g., solar, wind, geothermal)
What Renovations Count?
Eligible upgrades are the heavy hitters for cutting energy use and must result in a measurable improvement on your EnerGuide score:
- Adding and topping up Insulation (attic, walls, basement)
- Replacing windows and doors (high-efficiency replacements)
- Updating heating and cooling systems (adding heat pumps, high-efficiency furnaces with smart thermostats)
- Upgrading water heaters (heat pump or solar)
- Adding renewable energy (solar panels)
- Improving air sealing and adding ventilation (HRVs, ERVs)
Why It’s Worth Considering
Lower monthly costs over time. A tighter, more efficient home uses less energy, which means lower utility bills—often enough to offset the slightly higher mortgage payment.
Better comfort. Drafty rooms, uneven temperatures, and that perpetually cold basement? Proper insulation and air sealing fix those annoyances.
Higher resale value. Buyers increasingly care about energy performance. A home with a strong EnerGuide rating and modern systems is more attractive on the market. In fact, 61% of home buyers polled by CMHC in 2025 said that energy-efficiency updates were valuable in their decision-making process when purchasing a home. (Source: CMHC realtor presentation Tuesday, May 12, 2026)
How to Apply for CMHC’s Eco Improvement Program
You have up to two years from your mortgage closing date to submit your application, so there’s no need to rush, but the documentation process is easier if you stay organized from the start. What you’ll need:
- Paid invoices confirming which work was completed and what you spent
- EnerGuide Renovation Upgrade Report and EnerGuide Label (if available)
Download the application form from the CMHC website, attach your documentation, and submit it directly to CMHC by email at eemrefund@cmhc-schl.gc.ca, by fax at 1-800-245-9274, or by mail to 700 Montreal Road (Suite 1000), Ottawa, Ontario, K1A 0P7.
If you’re already planning to buy a home that needs some energy upgrades or you’re eyeing a fixer-upper with good bones, CMHC Eco Improvement is one of the more practical options available.
You get a chunk of your insurance premium back and a home that’s cheaper to run and more comfortable to live in. Worth a conversation with your mortgage broker before you sign anything.
