January 4th - 2005

CMHC launches new incentives

Making home ownership more attractive and attainable are the objectives behind new incentives recently introduced by Canada Mortgage and Housing Corporation (CMHC).

Making home ownership more attractive and attainable are the objectives behind new incentives recently introduced by Canada Mortgage and Housing Corporation (CMHC). The new incentives include two federal energy efficiency initiatives and enhancements to CMHC’s mortgage loan insurance program.

Energy efficiency
CMHC has partnered with the federal government to offer a 10 per cent refund on its mortgage loan insurance premium when a borrower buys or builds an energy efficient home or makes energy saving renovations to an existing home.

The CMHC Mortgage Loan Insurance for Energy Efficient Homes will be applicable to both owner occupied and rental properties through participating financial institutions when a borrower obtains a new mortgage or refinances an existing one. To qualify for a premium refund, a home’s energy efficiency must be rated using Natural Resources Canada (NRCan) EnerGuide for Houses rating system and meet certain minimum requirements. A new home that is R-2000 certified or that has an EnerGuide for Houses rating of 80 or above is eligible.

For existing homes, homebuyers or owners who complete energy-saving renovations through the EnerGuide for Houses service may also qualify for a non-taxable grant from NRCan ranging from $116 to $3,348.

The premium refund is also applicable to rental properties (apartment buildings, retirement and nursing homes).

Other incentives:
Easier financing
CMHC’s latest enhancements to its mortgage loan insurance products and policies should offer financial institutions greater flexibility when providing mortgages. Starting in January, enhancements will include:

Streamlined income verification for self-employed Canadians
This will improve access to CMHC’s homeowner mortgage insurance products for self-employed people and speed up the decision-making process on mortgage insurance requests with no increase to premiums, surcharges or borrower qualifications.

Homeowner mortgage loan insurance for a second, year-round home
Qualified borrowers will be able to use any of CMHC’s existing homeowner products, including Flex Down, Line of Credit (LOC), Refinance and 95% Financing product when they purchase or refinance a second home.

Other enhancements should assist small builders with more efficient, automated processing of Progress Advance applications to provide faster and easier cash flow.

For more information on these new initiatives, contact CMHC at 1-800-668-2642 or visit www.cmhc.ca

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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