RBC Green Home Mortgage
Introducing the RBC® Green Home Mortgage
This program was created to provide financing for new, pre-construction homes located in certified energy-efficient developments across Canada.1 An RBC Green Home Mortgage aims to make owning an energy-efficient home accessible, with lower mortgage payments2 combined with the potentially reduced operating costs of the home itself.
Did you know?
By 2030, Canada will need 5.8 million new homes to meet the expected demand. If built with current practices and prevailing codes, these structures will add up to 18 million tonnes of greenhouse gas emissions to our carbon footprint annually (plus additional emissions from the production of the cement and steel needed).
Canada has committed to reducing this sector’s emissions by 37% by 2030 and achieving net-zero by 2050. However, to meet these targets, Canada will need to change how and what we build.*
What is an energy-efficient home?
An energy-efficient or “green” home is designed to be more environmentally sustainable, compared to a traditionally built new home, by relying on less energy. The home should have all or most of the following features for high energy performance and reduced or no greenhouse gas emissions:
- High R-value insulation
- High-efficiency windows and doors
- Smart and energy-efficient lighting
- Onsite renewable energy generation, such as a solar panel system
- A programmable and high-efficiency heating and cooling system
Depending on the individual building certifications, energy-efficient homes typically have an energy performance considerably better than traditionally built homes.
The benefits of the RBC Green Home Mortgage
- Lower monthly mortgage payments
An RBC Green Home Mortgage comes with the option to extend the amortization period to up to 35 years (compared to a traditional mortgage with a 30-year amortization).2 - Financing for upgrades
You may want to include the costs of energy-efficient upgrades you select as part of your purchase price. Speak to your RBC Mortgage Specialist to learn more. - Complete your mortgage from the comfort of your home
As always you can connect with an RBC Mortgage Specialist online or by phone and complete your documents electronically. It’s simple, convenient and secure. - A firm mortgage approval
Once approved, you stay approved, throughout the entire construction period until your closing date.3
PLUS, you could get up to $3,000 cash to help you settle into your new home.5
Mortgage default insurance is a requirement of the Bank Act as a condition to obtain mortgage financing when homebuyers make less than a 20% down payment towards the purchase price of a home.
When you apply for your RBC Green Home Mortgage to purchase and own an energy-efficient home, you can also apply for a 25% partial premium refund.4
1Must be purchased from an accredited RBC Preferred Builder which has provided evidence to RBC that the home is going to be certified. Some of the common certifications eligible under the Green Home Program are, but may not be limited to, ENERGY STAR for New Homes (Version 12.6), LEEDS Canada for Homes (Gold or Platinum), R-2000, CHBA’s Net Zero and Net Zero Ready.
2Subject to eligibility. Selecting a longer amortization could potentially result in higher total interest costs. Upfront premium rebate to further lower mortgage payments is available through CMHC and for select eligible homes.
3Applies to selected properties only and subject to meeting credit criteria of Royal Bank of Canada.
4A 25% mortgage insurance premium rebate is available if your new build home falls under the CMHC Eco Plus program, Sagen Energy Efficient Housing Program or Canada Guaranty Energy-Efficient Advantage Program.
5Must be a new build home purchased from an RBC Preferred Builder. Cash value depends on the total amount funded with your eligible RBC mortgage. For full offer conditions, please visit rbc.com/buildermortgage.
* Source: RBC Thought Leadership article, RBC Building Reports ® / ™ Trademark(s) of Royal Bank of Canada. VPS112029 130511 (11/2023)