As an Ontario homeowner in August 2025, you’re likely focused on two major goals: finding ways to lower your increasingly high energy bills and doing your part to reduce your home's environmental footprint. It can feel like a challenge to do both, as major energy-saving renovations often come with a significant price tag.

Fortunately, the federal government has a powerful incentive program designed to help you achieve both goals: the Canada Greener Homes Grant and Loan program. This initiative offers substantial financial support to homeowners looking to make their properties more energy-efficient.

But navigating a government program can be confusing. What’s the difference between the grant and the loan? What renovations are eligible? How do you even apply? This comprehensive guide will provide an up-to-date overview of the program, explaining how it works, what upgrades are covered, and how to combine it with other financing for your project.

Understanding the Greener Homes Program

The first thing to understand is that Greener Homes is actually two separate programs designed to work together to tackle both the cost and the financing of your energy-efficient upgrades.

Two Programs, One Goal

The Canada Greener Homes Grant: This is a reimbursement for a portion of your renovation costs. You can receive up to $5,000 for eligible, completed retrofits. This money is a grant, meaning it does not need to be paid back. You can also be reimbursed up to $600 for the cost of the mandatory energy audits.

The Canada Greener Homes Loan: This is an interest-free loan of up to $40,000, with a 10-year repayment term. It is designed to help you cover the large upfront cost of major projects, like installing a new heat pump or solar panels.

You can apply for the grant, the loan, or both, depending on the scale and financing needs of your home improvement project.

Who is Eligible to Apply?

The eligibility criteria are straightforward. You must be the owner of the home, and it must be your primary residence. You will be required to provide proof of ownership during the application process. Eligible property types include single and semi-detached homes, townhouses, and mobile homes on a permanent foundation.

The Role of Natural Resources Canada (NRCan)

The entire program is managed by Natural Resources Canada (NRCan). All applications, evaluations, and final grant and loan decisions are handled through their official online portal.

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The Step-by-Step Application Process

The Greener Homes program requires you to follow a specific sequence of steps. It’s crucial to do these in the correct order to ensure you qualify for your reimbursement.

Step 1: The Pre-Retrofit EnerGuide Evaluation

This is the mandatory first step. Before you do any work, you must have a pre-retrofit EnerGuide evaluation completed on your home.

What it is: An EnerGuide evaluation is a comprehensive energy audit performed by a certified professional. They will assess your home from top to bottom to determine where it is losing the most energy.

Hiring an Energy Advisor: You must hire a registered Energy Advisor licensed by NRCan. You can find a list of certified organizations in your area on the official NRCan website.

What to Expect: The advisor will conduct a full inspection of your home's insulation, windows, doors, and heating and cooling systems. They will also perform a "blower door test" to measure your home's airtightness. Afterwards, you'll receive a detailed report with a list of recommended upgrades to improve your home's energy efficiency.

Step 2: Planning and Quoting Your Retrofits

With the recommendations from your EnerGuide report in hand, you can now decide which upgrades you want to undertake. It's essential to get detailed, itemized quotes from qualified and licensed contractors for all the planned projects. These quotes will be necessary if you plan to apply for the interest-free loan.

Step 3: Applying for the Loan (Optional)

If you need financing to cover the upfront costs, this is the stage where you apply for the interest-free Canada Greener Homes Loan. You will submit your application through the online portal, along with the contractor quotes for your chosen retrofits. The loan is administered by a third-party organization, but the application is integrated into the NRCan process.

Step 4: Completing the Renovations

Once your plans are set and your financing is in place, you can proceed with the renovations. It is absolutely critical that you keep all of your receipts, invoices, and contractor information. You will need to submit this documentation to prove that the work was completed as planned.

Step 5: The Post-Retrofit EnerGuide Evaluation

After all the renovation work is 100% complete, you must contact the same Energy Advisor to have them return and conduct a post-retrofit evaluation. They will perform another assessment to measure the improvement in your home's energy efficiency and verify that all the upgrades were installed correctly.

Step 6: Receiving Your Grant and Loan Funds

Your Energy Advisor will submit the final evaluation to NRCan. You will then upload your receipts and final documents to the online portal. After a final review, NRCan will issue your grant reimbursement cheque. If you were approved for the loan, the final funds will be issued at this stage.

What Retrofits are Eligible?

The program covers a wide range of upgrades, all focused on making your home more energy-efficient.

High-Impact Upgrades (Heat Pumps & Solar)

These are two of the most popular and highest-value retrofits covered by the program.

Heat Pumps: An electric heat pump is a highly efficient system that provides both heating in the winter and air conditioning in the summer. The program offers significant rebates for installing eligible cold-climate heat pumps, which are designed to work efficiently even during cold Ontario winters.

Solar Panels: The program also provides grants for the installation of photovoltaic (PV) solar panels. This allows you to generate your own clean electricity, reducing your reliance on the grid and lowering your hydro bills for years to come.

Improving Your Home's Envelope

This category focuses on preventing heat loss through your home's structure.

Insulation: Significant grants are available for increasing the insulation in your attic, basement, or exterior walls. This is often the most cost-effective way to improve a home's comfort and reduce heating costs.

Windows and Doors: You can get rebates for replacing old, drafty windows and doors with new, high-performance Energy Star certified models.

Other Eligible Upgrades

The program also provides smaller grants for other items, such as installing smart thermostats, performing basement waterproofing to protect insulation, and even installing resiliency measures like fire-resistant siding or backup batteries for your solar panels.

A Broker's Take: Financing the Rest

While the Greener Homes program is fantastic, it has its limits. A $40,000 interest-free loan is generous, but it may not be enough to cover a very large-scale project, like replacing all the windows in your home and installing a new geothermal heating system, which can easily exceed $70,000.

Bridging the Financial Gap

This is where a mortgage broker can provide a crucial advantage. We can help you access the equity you already have in your home to finance the rest of your project.

The HELOC as a Companion Product

A Home Equity Line of Credit (HELOC) is the perfect financial tool to work alongside the Greener Homes program. A HELOC can provide the additional funds needed to complete the full scope of your project. It can also be used to pay for the upfront costs of the renovations while you are waiting for the government grant and loan funds to be approved and distributed, which can sometimes take several months.

A Holistic Financial Plan

As mortgage brokers, our job is to help you create a holistic financial plan. We can help you structure a solution that combines the incredible benefit of the 0% interest Greener Homes Loan with the flexibility of a HELOC, making even the most ambitious energy-saving renovations affordable and achievable.

Your Path to a Greener Home

The Canada Greener Homes program is a fantastic opportunity for Ontario homeowners. It provides a clear path to improving your home's comfort, lowering your monthly energy bills, and increasing your property's value, all while helping the environment. While the process requires careful planning and documentation, the financial rewards are well worth the effort.

If you're considering making your home more energy-efficient, the first step is understanding your financing options. Contact our brokerage today to discuss how we can help you plan and finance your green home renovations.

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