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Fed up with that clanking furnace and drafty old windows? Thinking of going 21st century with a solar thermal system? Whatever your reason for renovating, this is a great time to do it. There are more grants and tax incentives than ever before, especially for improvements that improve your home’s energy efficiency.
Renovation savings
For homeowners, the big news this year is the Home Renovation Tax Credit (HRTC), which provides a tax credit of up to $1,350 to Canadians who make renovations to their home before February 1, 2010.
The HRTC covers a wide range of improvements, including landscaping, painting, installing a central air conditioner, and renovating a kitchen or bathroom. The credit applies to eligible expenditures over $1,000; and to receive the maximum credit of $1,350, your reno costs must come to $10,000.
Tip: Keep all your receipts, invoices and contracts, and make your claim by the deadline.
Triple dip for more savings
If the improvements you’re planning to make are to improve energy efficiency, you can save even more. In addition to the HRTC, you could also qualify for a grant under the federal ecoENERGY Program.
The ecoENERGY Program provides grants of up to $5,000 for home improvements, such as installing an ENERGY STAR† qualified furnace, adding more insulation, replacing a hot water heater, installing a low-flow toilet, and adding weather stripping to doors and windows. And, until March 31, 2011, the amounts granted for each improvement will be increased by 25%.
Better still — some of the eco-renos that will qualify you for ecoENERGY funding may also be eligible for a grant under a provincial program.
Start with an energy evaluation
In order to qualify for the ecoENERGY or provincial programs, you must first have an energy advisor, who is certified by Natural Resources Canada, conduct a pre- and post-retrofit evaluation of your home. The cost of an evaluation is about $300.
The evaluation is extremely useful to renovators because it provides a report on the test results and recommends areas in your home that could benefit from energy-saving improvements. After the post-retrofit evaluation, your energy advisor will submit the grant applications to the federal and provincial programs on your behalf.
You can do it!
The current grants and credits can help you make home improvements now. If you don’t have the money saved up, we offer two financing options that could save you some additional green:
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RBC Energy Saver™ Mortgage. This mortgage gives you a $300 rebate on your home energy evaluation, and is available if you’re refinancing, purchasing or making improvements to a resale property. You can choose this option on a residential mortgage or an RBC Homeline Plan® (see below), and you can choose a fixed-rate mortgage of three years or greater or a five-year, variable rate closed mortgage.
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RBC Energy Saver™ Loan. If you’re planning to purchase an energy-efficient product or service for your home, you can receive a 1% discount on the interest rate or a $100 rebate on a home energy evaluation on a fixed rate installment loan of $5,000 or more.
Here are some other financing options to help finance your home renovations in time to claim your grant or tax credit, even if they’re not for energy-efficiency changes:
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RBC® VISA* card. For the convenience of covering day-to-day purchases, plus the opportunity to accumulate RBC Rewards® points, this is a great option for smaller renovations that you can quickly pay off.
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Royal Credit Line®. Available as secured or unsecured options, this provides revolving credit that’s there whenever you need it. It’s ideal for mid-sized renovations as well as ongoing work where you may be paying for products or services over a period of time.
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RBC Homeline Plan. A great solution for renovations that are in the $10,000+ range. This secured line of credit allows you to access up to 80% of your home’s value1, and helps you manage your renovation expenses conveniently and cost effectively, with a low rate of interest.
To learn more about how you can take advantage of home renovation grants by financing your home improvements now, call 1-866-719-2880, visit our website, or stop in at your local RBC branch.
All mortgages and personal lending products are subject to Royal Bank of Canada lending criteria.
1 The lesser of purchase price or appraised value.
† The ENERGY STAR name and the ENERGY STAR symbol are registered trademarks of the United States Environmental Protection Agency and are used with permission.
® Registered trademarks of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.
* Registered trademark of Visa International Service Association. Used under license.
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