Federal Budget Offers Homeowners Incentive to Renovate

In mid-April, the Federal government released the 2021 Budget which included some real goodies for homeowners in the form of renovation incentives.

After years of harping on the importance of reducing carbon emissions, the government is actually putting its money where its mouth is with some financial incentives to help homeowners make their homes more energy efficient.

Given that 13 per cent of our nation's emissions is produced by the energy we use to heat and cool our homes and buildings, this is an area in which Canada can make great strides in carbon reduction.

Making our homes more energy efficient is not only good for the planet but will also be good for your wallets. These are the types of home improvements that will have a direct impact on your utility bill, thereby providing a very tangible return on investment over time.

The gem of this year's Budget for homeowners, therefore, is the earmarking of $4.4 billion ($778.7 million annually over the next five years) to the Canada Mortgage and Housing Corporation (CMHC) that will be doled out in the form of interest-free loans of up to $40,000 to homeowners that are engaging in qualified retrofits.

To qualify, the homeowner will simply need to engage in a retrofit that's been recommended through an authorized EnerGuide energy assessment. The program will be available starting this summer.

Examples of work that you can do that will qualify for the loan include:

• Replace your oil furnace or low-efficiency system with a high-efficiency furnace, air source heat pump or geothermal heat pump;

• Improve your wall or basement insulation and/or wall or roof panels;

• Install a high-efficiency water heater or on-site renewable energy, such as solar panels; or

• Replace your drafty windows or doors.

There are so many ways we can not only improve the comfort and efficiency of our homes (and save money by doing so in the form of reduced utility bills), but also make a real difference to the planet for future generations. And best of all, you can now get as much as $40,000 -- interest free -- to help make a difference on so many levels.

For more information, you can read the pertinent section of the budget here.