OTTAWA - Homeowners would get a break on their mortgages for upgrading houses to use less energy, under a plan the Opposition Liberals are considering for the next election.
So-called green mortgages could help the party deliver a comprehensive platform on the environment, the issue Leader Stephane Dion said last week will dominate the campaign.
Four Liberals interviewed by The Canadian Press confirmed the party is actively considering mortgage options to entice homeowners to go green.
One plan would allow homeowners to repay loans for retrofitting their homes through savings on heating and electricity costs. Certified inspectors would assess the home and recommended retrofits that would improve energy efficiency. The energy savings over time would then repay the retrofit loan.
Another idea is what Liberal environment critic David McGuinty calls a "location-efficient mortgage'' that would let people who buy homes near public transit borrow mortgage money at a lower interest rate. That would encourage transit use and discourage driving.
All four stressed the green mortgage ideas are still being worked out.
"The green mortgage idea has been actively tossed around,'' McGuinty said.
"Has the golf ball stopped down on the green yet? No.''
But McGuinty and other Liberal MPs were coy about the green mortgage plan's profile in the platform.
"One of the areas which we're certainly looking at is how to give people financial incentives to do the things that they need to do,'' said Toronto-area Liberal MP John Godfrey.
"It's a no-regret policy. I can't believe there's any Canadian who perversely wishes to pay more for heating costs.
"I can't say more than that, but it's something that's under very active consideration.''
The federal government estimates a typical homeowner with an annual heating bill of $2,000 could save up to $700 a year by making the house more energy-efficient.
Doing so would also trim a home's energy use by about 30 per cent and reduce its greenhouse gas emissions by as much as four tonnes.
The owner of an average four-bedroom home would have to invest between $3,000 and $7,000 to turn it into a green building, said Jonathan Westeinde, managing partner of Ottawa-based developer Windmill Development Group.
But he added the banks aren't necessarily confident homeowners will save enough money through retrofitting to pay back their loans.
That's where the green mortgage scheme comes in.
"Whatever those forecast savings are, and what the bank is moving outside its box on related to the mortgage, that portion would be guaranteed by the government,'' said Westeinde, who has spoken with the Liberals about their green mortgage plan.
"And what that becomes then is the tool that enables the market to get a bunch of products out. It doesn't require a whole bunch of non-recoverable grants by the government.''
The federal and Ontario governments currently offer grants to homeowners who make energy-saving retrofits.
Consumers can qualify for a rebate of up to $5,000 for one home or multi-unit residential building under Natural Resources Canada's Ecoenergy Retrofit program. Ontario's maximum rebate is also $5,000.
Liberal MP Anthony Rota said the party is mindful that some banks, including the Citizens Bank of Canada, already offer various forms of green mortgages.
"We're looking at all options. If we can help things out and help individuals get better efficiency from their heating dollar, we'll see how we can help either individuals or the banks to better administer their programs,'' he said.
"The last thing we want to do is get into competition with the banks if it's something that they're doing already."
