This is the first part of a series of articles that we will be posting on Green Mortgages.
How can a mortgage be ‘green’? This seems to be a common initial question when people first hear of a Green Mortgage. Well, the answer is that a mortgage can be green if it provides incentives for purchasing energy-efficient homes, or otherwise rewards home buyers by giving them the tools they need to make their home green.
In Canada, a number of lenders and mortgage default insurance providers offer ‘green’ programs. The lenders currently offering green mortgages in Canada include TD Canada Trust, CIBC and Citizens Bank. The default insurance providers include CMHC & Genworth.
This first article on green mortgages will focus on TD Canada Trust’s Green Mortgage product.
TD Canada Trust is currently offering a five year fixed rate Green Mortgage, which is available to both new and existing TD customers. This Green Mortgage has the following features:
- 5-year fixed rate that is equal to the posted rate minus 1% (As of Nov. 21 2008 the Green Mortgage rate was 6.20%)
- Allows for an amortization of up to 35 years.
- Provides a Cash Rebate on ENERGY STAR qualified products: TD will rebate up to 1% of the amount of the mortgage when you submit a Rebate Request Form with copies of the receipts for ENERGY STAR products. This must be sent in within 6 months of the term start date of the mortgage
- At the time when TD Canada Trust sends your rebate, they will also make a $100 donation to the TD Friends of the Environment Foundation.
- Please note that the Green Mortgage cannot be combined with any other offer or special mortgage, such as a cash back mortgage.
TD’s Green Mortgage essentially provides you with a slightly discounted interest rate and rewards you for buying ENERGY STAR products. What exactly do you get? If you were to take out a $200,000 mortgage, you could then buy up to $2000 in ENERGY STAR products and get a full rebate back from TD. Qualified products include ENERGY STAR major appliances, heating, cooling and ventilation equipment (such as a furnace), windows, doors and skylights. The rebate can also apply to the cost of a residential energy efficiency assessment on your home. For a full listing of ENERGY STAR qualified products, click here. One thing to note is that while the rebate will be given on the cost of the product (including taxes), any cost to install the product is not eligible.
Overall TD provides a great upfront incentive for customers looking to improve the energy-efficiency of their home.
Would you like to talk with a Mortgage Agent about TD’s Green Mortgage? If so please click here.
Have you had any experiences with the Green Mortgage? Please let us know by entering a comment below!
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