CMHC Eco Plus: How to Get 25% of Your Mortgage Insurance Premium Back
CMHC mortgage insurance is one of the most expensive line items for first-time buyers putting down less than 20%. The premium ranges from 2.80% to 4.00% of the loan amount depending on how much you put down — on a $450,000 mortgage, that's $12,600 to $18,000 added to your loan.
Most buyers treat this as a fixed, unavoidable cost. The CMHC Eco Plus program offers a partial rebate for buyers who purchase energy-efficient homes — and in Alberta's new construction market, it's more accessible than most buyers realize.
What Eco Plus Is
CMHC Eco Plus is a partial refund of your CMHC mortgage insurance premium for buyers who purchase or construct an energy-efficient home. The refund amount is 25% of the total CMHC premium paid.
This is not a new program — it has existed in various forms for years — but it remains widely underutilized because buyers don't know to ask for it and builders don't proactively mention it. The application must be submitted within 24 months of your mortgage closing date, which means you have a window after possession to claim it.
Which Homes Qualify
Eco Plus eligibility requires the home to achieve one of several recognized energy efficiency certifications or standards:
ENERGY STAR for New Homes — A federal certification administered through Natural Resources Canada. New homes built by certified ENERGY STAR builders are tested to confirm they perform 20% more efficiently than code-minimum homes. The certification requires third-party testing (blower door test, HVAC commissioning) and documentation by an EnerGuide rater.
Built Green Canada — A voluntary national program with tiers from Bronze to Platinum. Homes must achieve specific scores on the EnerGuide rating system. Built Green is widely used by production builders in Calgary and Edmonton, particularly in newer suburban communities.
Net Zero Home — Homes certified to produce as much energy as they consume over the course of a year, either through enhanced insulation and air sealing or through on-site renewable generation (typically solar panels).
R-2000 — An older, established standard from Natural Resources Canada for highly energy-efficient construction. Less common in current Alberta new construction but still eligible.
Homes with Solar Panels — Standard solar photovoltaic systems meeting CMHC's documentation requirements can qualify even without a broader energy certification, provided the system is certified and properly installed.
How Much Is the Rebate Worth?
The rebate is 25% of the CMHC premium, returned directly to you by CMHC after your application is approved.
| Purchase Price | Down Payment | Loan Amount | CMHC Premium (4%) | Eco Plus Rebate (25%) |
|---|---|---|---|---|
| $450,000 | 5% ($22,500) | $427,500 | $17,100 | $4,275 |
| $500,000 | 5% ($25,000) | $475,000 | $19,000 | $4,750 |
| $600,000 | 10% ($60,000) | $540,000 | $16,740 | $4,185 |
| $700,000 | 10% ($70,000) | $630,000 | $19,530 | $4,883 |
The rebate is paid by cheque to the borrower (or deposited directly, depending on how CMHC processes it). It does not reduce the mortgage principal — it's a direct payment back to you that you can apply however you choose: paying down the mortgage, covering moving costs, or building a maintenance reserve.
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How to Apply
Step 1: Confirm the home qualifies. Ask your builder at the time of purchase whether the home holds any of the qualifying certifications. New home builders who build to ENERGY STAR or Built Green standards should provide documentation at possession. Get the EnerGuide rating label and certification documentation in writing.
Step 2: Apply to CMHC within 24 months of closing. The application goes through CMHC's online portal or by mail. You'll need:
- Your mortgage account information
- Documentation of the energy certification (EnerGuide label, Built Green certificate, ENERGY STAR certification, or solar system documentation)
- Proof of possession date
Step 3: Wait for processing. CMHC reviews applications and typically processes within 60 to 90 days. The rebate cheque is issued once approved.
The 24-month window is firm. If you miss it, the rebate is permanently forfeited. Set a calendar reminder when you close.
Alberta Context: Why This Matters Here
Alberta's climate makes energy efficiency a genuine operational benefit, not just a subsidy-chasing exercise. The temperature differential between summer and winter in Calgary and Edmonton is among the most extreme in the country for major urban centers. Homes built to ENERGY STAR or Built Green standards have measurably lower heating bills, better window performance in deep-freeze conditions, and reduced moisture infiltration risks — all factors that affect both comfort and long-term maintenance cost.
Many production builders in Calgary's southern suburban communities (Legacy, Seton, Cranston, Mahogany) and Edmonton's southwest growth areas (Windermere, Keswick, Heritage Valley) build to Built Green or ENERGY STAR as a standard, not an upgrade. Ask specifically at the sales office — if the community is Built Green certified, your CMHC premium is automatically eligible for the Eco Plus rebate.
Stacking Eco Plus with the GST Rebate
For first-time buyers purchasing a new build, the GST rebate (available on new homes up to $1 million for agreements signed after March 20, 2025) and the Eco Plus refund are separate programs that can both be applied to the same purchase. They're not mutually exclusive.
On a $550,000 new Calgary home with a qualifying energy certification:
- GST rebate (5% of $550,000): $27,500 eliminated at closing
- Eco Plus rebate (25% of a ~$20,000 CMHC premium): ~$5,000 received within 24 months
Combined, these two programs reduce your net acquisition cost by more than $32,000 compared to a non-eligible purchase.
Private Mortgage Insurance Alternatives
CMHC is the most recognized mortgage insurer in Canada but not the only option. Sagen (formerly Genworth) and Canada Guaranty also offer mortgage default insurance and have their own green home rebate equivalents. If your lender uses a private insurer rather than CMHC, check whether a similar energy efficiency rebate is available — the structure is typically comparable.
The Alberta First-Time Home Buyer Guide covers the full cost calculation for new construction purchases in Calgary and Edmonton, including how to evaluate builder certifications, ask the right questions about energy ratings, and submit the Eco Plus application alongside your GST rebate documentation.
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