The loans will not affect credit ratings or mortgage limits
The Saskatoon municipal government is contemplating an energy-efficiency home loan that would make it easier for the city’s homeowners to make environmentally friendly modifications to their residences.
The proposed low-interest loan program, which is scheduled for deliberation by city council on February 22, will not affect credit ratings or mortgage limits as each loan would be tied to its respective property rather than to the borrower.
Jeanna South, Saskatoon’s director of sustainability, said that this program would be especially valuable in a market where a significant proportion of homes were built before 1980.
“If you’re looking at potential projects, you might be thinking that a high-efficiency furnace or a boiler would be something that would benefit you,” South said. “You might be interested in solar [panels] for electricity or for hot water heating on your roof, or you might also be looking at water conservation initiatives.”
The city estimated the program to cost $380,000 in administration expenses over two years, along with $2.5 million for the loans. Aside from ensuring a more sustainable environment, South said that the program could stimulate the local construction and renewables sector.
“Many of our households in Saskatoon suffer from energy poverty – that’s when more than 6% of their after-tax income is spent on energy bills,” South told CBC News. “So obviously, bringing down those energy bills, especially for some households, is really important.”
