Itâ€™s the latest in a line of efforts in the Canadian banking industry to reward green homes with rebates and lower rates. The BMO Eco Smart Mortgage offers a 3.89% fixed five-year rate for Canadians who choose energy efficient homes. The regular posted fixed rate for a five year mortgage term from BMO is 5.34%.
Qualification for the Econ Smart Mortgage will be determined by an appraiser for homes that include high-efficiency heating and cooling systems, qualified hot water systems, and high-quality attic insulation or windows and doors, according to a news release by BMO.
Katie Archdekin, head of mortgage products for BMO, said the green mortgage product is designed to encourage homeowners to limit their energy use and thus their cost of owning a home.
â€œCanadians want to decrease their carbon footprint and recognize that their home is one of the key ways they can do so,â€ she said.
Energy-saving property owners can also choose from the Royal Bank of Canada Energy Saver Mortgage, which refunds up to $300 on a home-energy related improvement.
The Canadian Mortgage and Housing Corporationâ€™s Green Home program features a 10% refund on the mortgage loan insurance premium and extended amortization periods without surcharge.
Thus far CMHC has given out $3 million in premium refunds through that program. Another product is TD Canada Trustâ€™s Green Mortgage, which offers a rebate of up to 1.5% on the cost of a mortgage with qualified purchases.
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Bank of Montreal today unveiled a new mortgage product for Canadians who own an energy efficient home.