Energy-Efficient Mortgage (EEM)

An EEM is a special type of mortgage which allows you to finance remodeling work that increases your home's energy efficiency. If you decide to finance some of your remodeling with an EEM, your monthly energy savings are used to finance the energy upgrades. To qualify, your improvements must be cost-effective. This means the monthly savings on your utility bills as a result of the improvements must be greater than the monthly repayment of the energy mortgage, and also that your total savings must be greater than your total costs, including maintenance costs. If you decide to finance part of your remodeling with an EEM, you must apply for both loans at the same time, as you cannot add an EEM after the regular loan has been granted. Once your EEM has been approved, you have between 90 and 180 days to make the improvements.