Did you recently purchase a home for sale? If so, you may be eligible for a rebate.
These rebates can significantly reduce your overall expenses by putting money back into your pocket. It’s not uncommon to receive cheques for hundreds or thousands of dollars.
Finding out about the rebates, though, is what keeps many homeowners from taking advantage. Real estate agents who understand the opportunity can alert their clients to the possibility. A real estate agent can also help you find a qualifying home.
Here is more information on how you can take advantage of this opportunity.
Learning About the Rebates
If you bought a house for sale within the past few years, and paid a down payment of less than 20 percent, chances are your mortgage was insured by one of three companies. In Canada, two of the most common mortgage insurers are the Canada Mortgage and Housing Corporation (CMHC) and Genworth Canada.
This is important to know because both companies offer mortgage insurance rebates. There is just one qualifying condition: your home for sale must have a certain EnerGuide rating.
Both companies are prepared to offer you a rebate if you buy an energy-efficient home. The specific amount and qualifications vary depending on the insurer.
The CMHC Rebate
CMHC offers a 10 percent rebate on the mortgage loan insurance premium if your home meets certain guidelines. If you bought your home on or after January 1, 2013, your home must have an EnerGuide rating of 82. If you bought from April 1, 2010 to December 31, 2012, your home must have an 80 rating, and if you bought from July 27, 2005 to March 31, 2010, your home must have a 77 rating.
Today the CMHC insurance premium is $10,473.75 or 3.15 percent (when purchasing a $350,000.00 home with a 5 percent down payment) After June 1, 2015 the premium will increase to 3.6 percent which equates to $11.970.00. That is an increase of almost $1,500.00. That means a 10 percent rebate would give you $1,197 back.
The Genworth Rebate
Genworth offers similar benefits. They follow the same general guidelines as CMHC, so the qualifications are virtually the same. If you have an EnerGuide rating that meets the criteria listed above for a new or existing home, you can apply for a rebate.
Like with CMHC, Genworth insurance premiums are rising. A standard premium of 95 percent Loan to Value and a 3.15 percent premium would result in a premium of $9,450 and a rebate of $945, which would reduce your total premium to $8,505.