First National Financial LP

Are you entitled to an energy efficiency refund on your CMHC premium? Find out here.


The Opportunity

The Government of Canada, through CMHC, provides a generous CMHC insurance premium refund for newly constructed Multi-unit apartment projects that exceed the 2015 national building code’s energy standards by just 5% as well as for energy efficiency improvements on existing Multi-Unit apartment assets.

The Challenge

Remarkably, this substantial refund is often left unclaimed because few people know it exists and even fewer know how and when to apply to meet CMHC’s application deadline.

The Solution

As Canada’s largest CMHC-approved lender, First National Financial is intimately familiar with the application process and the evidence that must be produced to qualify, and we use our expertise to secure every available dollar – whether you are a First National client or not.

The Application

For newly built Multi-unit apartment projects, we will advise you on the requirements necessary to demonstrate that your property exceeds the energy efficiency standards by 5% and manage the submission to CMHC to obtain the insurance premium refund.

For existing Multi-unit properties, qualifying energy efficiency upgrades include but are not limited to: replacing an old furnace with a high efficiency unit, installing LED lighting, upgrading thermostats, investing in energy efficient windows and/or doors, replacing old appliances with more energy efficient models.

The Deadline Requirements

The program is open to those who are:

  • constructing a new multi-residential building or have completed construction and received a CMHC term loan within the last 12 months
  • upgrading an existing apartment building with energy-efficient features or have completed such a renovation project and received a CMHC term loan within the last 12 months or are planning a CMHC re-finance in the upcoming 12 months.  

The Payback

For new construction, if you are 5% above national building energy standards, you are entitled to a refund equal to 10% of the cost of your CMHC term loan insurance premium.  

For existing properties, you are entitled to a percentage credit on the insurance premium paid, limited to the cost and level of new energy efficiency improvements to a maximum of 15%. The refund itself can be financially material while the investment in energy efficiency drives higher NOI, property value and therefore additional loan re-finance proceeds if completed within 12 months prior to a re-finance.

The Bottom Line

In this economic environment, every dollar counts. First National will make your investment in energy efficiency count for more but only if you act within the required timeframe.