Going Green – Unveiling the Cost Savings of an Energy Efficient Home
Save money today, save the world tomorrow.
Ranked 15th on the Green Future Index globally in 2002, and 2nd best out of the worlds top 15 oil exporting countries, Canada is a global leader in ESG performance. In recent years, the Canadian housing market has witnessed a significant shift towards sustainability and energy efficiency. With the growing need to focus on renewable energy, while feeling the pinch of increasing energy costs for ALL households across the nation, initiatives such as Sagen Canada’s Energy Efficiency Program have gained prominence throughout Canada. In this blog post, we will show you that going green won’t just feed your soul but also help feed your family.
Understanding the Program
The SAGEN Energy Efficiency Program is designed to incentivize homeowners to invest in energy-efficient improvements for their properties. By offering mortgage loan insurance premium refunds to those who purchase, build, or renovate their homes to make them more energy efficient, the program aims to promote sustainable housing practices while reducing the financial burden on homeowners.
Cost Comparison and Potential Savings
Let’s consider the cost savings of the SAGEN Energy Efficiency Program by comparing scenarios with and without the program, based on 95% financing on a $400,000, $600,000, and $800,000 purchase price with and effective interest rate of 5%.
$400,000 Without the Energy Rebate:
Purchase Price: $400,000, Down Payment: $20,000, Net Mortgage of $380,000, Sagen insurance fee of $15,200, leaving us with a total mortgage of $395,200
Monthly Payment: $2,298.50
Total payments over 25 years: $689,550
$400,000 With the Energy Rebate:
(Assuming a 25% refund on mortgage loan insurance)
Purchase Price: $400,000, Down Payment: $20,000, Net Mortgage of $380,000, Sagen insurance fee of $11,400, leaving us with a total mortgage of $391,400
Monthly Payment: $2,276.40
Total payments over 25 years: $682,920.57
Total savings with SAGEN Energy Efficiency Program: $6,629.43
$600,000 Without the Energy Rebate:
Purchase Price: $600,000, Down Payment: $35,000, Net Mortgage of $565,000, Sagen insurance fee of $22,600, leaving us with a total mortgage of $587,600
Monthly Payment: $3,417.51
Total payments over 25 years: $1,025,253.27
$600,000 With the Energy Rebate:
(Assuming a 25% refund on mortgage loan insurance)
Purchase Price: $600,000, Down Payment: $35,000, Net Mortgage of $565,000, Sagen insurance fee of $16,950, leaving us with a total mortgage of $581,950.
Monthly Payment: $3,384.65
Total payments over 25 years: $1,015,395.06
Total savings with SAGEN Energy Efficiency Program: $9,858.21
$800,000 Without the Energy Rebate:
Purchase Price: $800,000, Down Payment: $55,000, Net Mortgage of $745,000, Sagen insurance fee of $29,800, leaving us with a total mortgage of $774,800
Monthly Payment: $4,506.28
Total payments over 25 years: $1,351,882.63
$800,000 With the Energy Rebate:
(Assuming a 25% refund on mortgage loan insurance)
Purchase Price: $800,000, Down Payment: $55,000, Net Mortgage of $745,000, Sagen insurance fee of $22,350, leaving us with a total mortgage of $767,350
Monthly Payment: $4,462.95
Total payments over 25 years: $1,338,883.76
Total savings with SAGEN Energy Efficiency Program: $12,998.87
The above outline clearly shows that this program will benefit both your monthly mortgage commitments as well as reduced energy costs that come from having an environmentally responsible home. You can help yourself now and help benefit future generations by simply doing what is right the next time you buy your build a home.
Reach out to your Advanced Mortgage Professional today and let us help you make cents of your mortgage
