Did you know that if you have an insured mortgage on a new build, you are eligible for a 25% refund on your default insurance premium if the property meets current Energy Efficient certification standards?
Here’s the key info:
- In BC, most new builds are now required to meet BC Energy Step Code standards as of May 1st, 2023—meaning most new builds qualify for this refund.
- The refund applies to any insured mortgage, and you have 2 years to apply for it from the date of purchase.
- CMHC, SAGEN, and Canada Guaranty all offer this refund program, making it a fantastic value-add for insured buyers.
In fact, 75% of eligible buyers never apply for this refund, often because they don’t know it’s an option. So if you have purchased a new build in the last two years—you may be eligible for cash back!
Important Points:
- For BC Energy Step Code, almost all new builds will meet these energy-efficient standards. This includes homes built before May 2023, which can still be eligible for the refund if they meet certification.
- The refund application is straightforward and done online. After approval, you typically receive your refund within 30 days.
- For any new build, there is a 5 year window since original build date for the refund to be applicable: example built in 2020, 1st buyer can apply for refund, sells in 2023 and that new buyer can also apply for a refund if they do an insured purchase.
Additionally, if you are a First-Time Homebuyers (FTHB), remember that the new 30-year amortization rule for new builds came into effect on August 1st, 2024. And for FTHB, the property tax exemption on new builds has increased from $750,000 to $1.1M as of April 2024.
For more details and links to the application pages, check out the following:
