Are there low-interest loans for
energy-efficient homes?
Want a low-interest loan for an energy-efficient home? Read this and act — the money-saving options exist.
Quick answer
Yes. Low-interest loans and specialized financing exist for energy-efficient homes. Programs range from federal energy-efficient mortgages to local green mortgages, PACE lending, and utility-backed loans. These lower rates, rebates, and incentives reduce monthly costs and boost resale value.
How low-interest energy financing works
Lenders reward energy savings. If your home uses less energy, it poses lower risk and lower monthly costs — which lenders like. That translates to: lower interest, higher borrowing limits, or mortgage insurance rebates. Types of financing to look for:
1) Energy-Efficient Mortgages (EEM)
- Built into the mortgage to fund upgrades.
- Allows higher borrowing to cover insulation, windows, heat pumps, solar.
- Often available through government-backed programs and large lenders.
2) Green mortgage products from banks
- Dedicated “green” mortgages offer rate discounts or cashback for certified energy-efficient homes.
- Ask local banks and credit unions for green mortgage options and eligibility.
3) PACE and on-bill financing
- Property Assessed Clean Energy (PACE) ties repayment to property tax bills in eligible regions.
- Utility on-bill programs let you repay through your energy bill.
- Great for retrofit projects when you don’t want a traditional mortgage change.
4) Mortgage insurance and rebate programs
- Some national mortgage insurers refund part of the mortgage insurance premium for ENERGY STAR or equivalently rated homes.
- Check government mortgage insurance bodies in your country for green rebates.
5) Grants, utility rebates, and linked loans
- Combine low-interest loans with grants and utility rebates to drive down the net cost.
- Many provinces/states offer top-up grants when you install efficient systems.
What to do next — step-by-step (actionable)
- Get an energy audit: Identify upgrades that qualify for financing and rebates.
- Compare lenders: Ask specifically for “green mortgage”, “energy-efficient mortgage”, or “EEM” options.
- Bundle incentives: Apply grants and rebates first, then finance the remainder to get the lowest effective rate.
- Verify certification: ENERGY STAR, Passive House, or local efficiency certificates increase chances of favorable rates.
- Consult a specialist: Talk to a mortgage expert who knows local programs.
Why work with a local specialist
A mortgage and real estate pro who tracks local rebates and lender deals saves you weeks and thousands of dollars. I handle the research, connect to lenders, and map financing to your home-renovation plan. That clarity gets you approved faster and with better terms.
Ready to lower your rate and upgrade your home? Email me at tony@sousasells.ca or call 416-477-2620. Let’s run the numbers and lock in the best low-interest energy financing for your property.
