Ontario homeowners can benefit from moneysaving grants and incentives when renovating.
Home renovations can be a costly yet necessary part of home ownership. Out-of-date heating and cooling systems, unsafe living conditions, and changing life circumstances such as aging, illness or disability are common reasons for making home improvements. There are a variety of home improvement grants and incentive programs in place to assist Ontario homeowners when renovating their homes.
Save on Energy Heating & Cooling Incentive
The Ontario Power Authority offers a heating and cooling incentive to homeowners installing Energy Star qualified heating and cooling systems. Products must meet specific energy-saving guidelines to earn the Energy Star rating granted by the U.S. Department of Energy and the U.S. Environmental Protection Agency. Get $250 for upgrading to a high-efficiency furnace with an Electronically Commutated Motor, and another $250 for exchanging your central air conditioning unit for an Energy Star qualified unit. Upgrading to a more efficient Tier 2 central air system will earn an additional $400 in incentives.
Homeowner Residential Rehabilitation Assistance Program
Canada Mortgage and Housing Corporation runs the Residential Rehabilitation Assistance Program to help homeowners renovate substandard and overcrowded homes. CMHC sets an income threshold to qualify homeowners who can't afford to renovate to make a house habitable. Loans of up to $24,000 fund improvements to fire safety, and to plumbing, heating, electrical and structural systems in a dwelling at least five years old, and valued at less than a maximum set by CMHC. Renovations completed prior to written approval are not funded. Fully forgiveable loans are not repaid as long as the homeowner owns and lives in the dwelling for the next five years. Loan amounts are determined by location and cost of work completed.
Emergency Repair Program
This program is also funded through CMHC and helps low income households in rural areas pay for urgent necessary repairs to keep their homes safe. Qualified emergency repairs include electrical systems, plumbing, heating and chimneys, foundations, doors and windows, roofs, vents, interior walls, floors and ceilings. Amounts granted depend on the location of the home, and range from $6,000 to $11,000. Applicants must have a household income below the maximum threshold set by CMHC.
GST/HST Rebates
Ontarions pay 13 percent Harmonized Sales Tax, including 5 percent federal Goods and Services Tax. The GST/HST New Housing Rebate covers GST paid on renovation costs, and the Ontario Provincial Rebate covers the provincial portion of HST. Individual homeowners should apply for both rebates when planning substantial renovations to their primary residence. Replace at least 90 percent of the interior or build an addition doubling the living space to meet the substantial renovations condition. Renovating a non-residential building to make it a residence is also considered a substantial renovation. Apply for the rebates through the Canada Revenue Agency.
Tags: Energy Star, Assistance Program, cooling systems, Energy Star qualified, five years