Home renovations can be a thrilling yet daunting task. Between choosing the right colours, materials, and contractors, it’s easy to overlook the financial incentives available to you. Fortunately, the Government of Canada offers several programs designed to ease the financial burden of renovations. Let’s take a closer look at some of the key programs that every Canadian homeowner should consider when planning their next project. 

Canada Greener Homes Loan Program (CGHLP) 

The Canada Greener Homes Loan Program (CGHLP) is a federal initiative designed to help Canadians make their homes more energy efficient. This program provides interest-free loans to support retrofits recommended by an energy advisor, helping reduce energy bills and environmental impact.  

Why Consider CGHLP?  

• Interest-Free Financing: The program offers interest-free loans, allowing you to invest in energy-efficient upgrades without the worry of accumulating interest.  

• Environmental Impact: By making your home more energy efficient, you contribute to a greener planet by reducing your carbon footprint.  

• Long-Term Savings: Energy-efficient homes lead to lower utility bills, translating to significant savings over time.  

To take advantage of this program, homeowners must first undergo an energy assessment by a certified energy advisor. This assessment will identify potential areas for improvement and recommend specific retrofits. Once approved, you can access the loan to finance these energy-saving upgrades.   

Multigenerational Home Renovation Tax Credit (MHRTC) 

The Multigenerational Home Renovation Tax Credit (MHRTC) is a refundable tax credit introduced by the Government of Canada to support families who renovate their homes to accommodate multiple generations under one roof. It helps offset the cost of creating a secondary dwelling unit for a qualifying relative.  

Benefits of MHRTC:  

• Family Support: This credit encourages the creation of living spaces that can accommodate elderly parents or adult children, fostering family unity.  

• Tax Relief: As a refundable credit, you can receive a refund even if you owe no taxes, making it an attractive option for many households.  

• Increased Property Value: Adding a secondary dwelling unit can increase your home’s market value, offering potential long-term financial benefits.  

To qualify, your renovation must create a self-contained living space with its own entrance, bathroom, and kitchen facilities. The relative must be a senior or an adult with a disability who requires support.   

Home Accessibility Tax Credit (HATC) 

The Home Accessibility Tax Credit (HATC) is a nonrefundable tax credit from the Government of Canada that assists in offsetting the cost of renovations that improve the accessibility, safety, or mobility within a home for seniors or individuals with disabilities.  

Key Advantages of HATC:  

• Improved Living Conditions: Renovations can significantly enhance the quality of life for seniors or individuals with disabilities, making daily activities easier and safer.  

• Tax Savings: The HATC can help you save on your taxes, making accessibility renovations more financially feasible.  

• Enhanced Safety: Upgrades such as installing grab bars, widening doorways, or building ramps can prevent accidents and promote independence.  

Eligible renovations must be of an enduring nature and integral to the dwelling unit. It’s essential to keep all receipts and documentation to support your claim when filing taxes. 

Canada Mortgage and Housing Corporation (CMHC) Financing Options 

If you're planning to renovate your home in Canada, the Canada Mortgage and Housing Corporation (CMHC) offers a variety of financing options to help make your project more affordable and manageable. Whether you're tackling a small upgrade or a major overhaul, CMHC provides multiple solutions tailored to different needs and budgets. Understanding these options can help you choose the right financial strategy and move forward with confidence. 

Check out these financing options from CMCH: 

CMHC Refinance  

CMHC Refinance can help homeowners add a secondary suite to their existing home, such as a basement suite, an in-law apartment, or a laneway home. This option can increase your property’s value and provide additional income opportunities.  

CMHC Improvement  

CMHC Improvement offers flexible financing with lower down payments for homebuyers purchasing an existing home and renovating. It simplifies the process of turning a fixer-upper into your dream home.  

CMHC Eco Improvement  

The CMHC Eco Improvement offers a 25% partial premium refund to borrowers who buy existing homes and make energy-efficient improvements. This initiative not only helps you save on premiums but also promotes sustainable living.  

Other Resources 

In additional to federal/national support, your province and municipality may also have a range of financial incentives to help with your renovation, so make sure to look for them as well.  

Navigating the world of home renovations can be complex, but leveraging available tax credits and financing programs can make the process more affordable and rewarding. At CHBA, we’re committed to empowering you with the knowledge and resources you need to make informed decisions. Explore our comprehensive guides on our new Renovation Incentives and Resources page. Your dream home is within reach—let’s make it a reality together!