BMO Bank of Montreal has introduced the BMO Eco Smart Mortgage, a brand new mortgage product that is designed to encourage and reward Canadian homeowners looking to reduce their energy usage, and save on their home expenses.
For those who meet BMO’s energy efficiency criteria will qualify for a market leading five year fixed rate of 3.89%, which is a rate significantly lower than comparable green mortgage products. Typically, a homeowner with a $300,000 mortgage amortized over 30 years would save thousands of dollars over the five year on an Eco Smart Mortgage.
This mortgage is designed to encourage homeowners to lower their energy usage, and ultimately reduce the cost of owning a home.
A new Leger Marketing survey, conducted for BMO Bank of Montreal shows that 47% of Canadian homeowners plan to make energy efficient upgrades in the coming year. Having said that, the survey shows that the majority of homeowners (51%) have said that utility costs were the biggest surprise financially when it came to owning a home.
By reducing energy usage, it is one way Canadians can significantly cut back the cost of running a home.
The heating and cooling of a home represents approximately half of a homeowners annual utility expenses noted Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal.
Over the years I have always heard that the cost of owning a home should not exceed one third of total household income, therefore Canadians should be taking advantage of every opportunity to reduce expenses and like I said, energy usage is a great place to begin.
How does the Eco Smart Mortgage Work?
To quality for the Eco Smart Mortgage, visit a BMO branch or speak with a BMO mortgage specialist to determine whether or not your current home, or home you are planning to buy meets the specific energy saving requirements.
These requirements include:
- High efficiency heating and cooling system
ENERGY STAR equipment are great equipment to use; purchasing ENERGY STAR heating equipment can reduce utility bills by 15%, while ENERGY STAR qualified air-conditioning units can lower costs by 30%
- High quality attic insulation
An easy home improvement that can translate into immediate savings on home energy bills, especially in the winter months.
- Solar, tank-less or ENERGY STAR qualifies hot water system
Switching to a tank-less or solar water heater can significantly reduce your hot water consumption, which usually accounts for up to 20% of a home’s energy consumption.
- ENERGY STAR qualified windows, doors and major appliances
These types of products can save a homeowner almost 20% on energy costs alone, making them a worthwhile purchase.
If you home qualifies, you are then automatically eligible for a market leading 3.89% mortgage rate from BMO, through the Eco Smart Mortgage.
What I love about this mortgage product is that you are rewarded with a great rate for simply making your home more green, which ultimately benefits you as you have a lower energy bill to deal with. Even if you decide to go with another mortgage product, preparing your house to become more energy efficient is a great way to go, and it will definitely benefit you in the long run.
image source: Rev Dan Catt