A monthly payment that will save you money
Financial institutions recognize that eneryg efficiency upgrades add value to the property. As a matter of fact, TD Canada Trust did a study in Albert in 2010 and found that home buyers were willing to spend 5-10% more on a house if the house had significant green technologies incorporated. (See the article link on the left to read the results of this study.)
With low interest rates, financing makes getting a geothermal installation easy and affordable. Including the cost of a geothermal system in your mortgage or home equity line of credit is a great way of financing and will save you money on a net operating cost basis (see our Savings page).
A great alternative to mortgage financing is TD's Renewable Energy Financing (REF) program that Thermal Creek as TD's partner is able to offer to homeowners. Highlights of this program are outlined in the table below as well as a comparison between this program and mortgage financing.
Renewable Energy Financing Program
|
Renewable Energy Financing |
Mortgage Financing |
Comments |
|
|---|---|---|---|
| Open or Closed? | Open | Typically closed | REF is open and can be paid off at any time without penalties. Mortgages are usually closed which means that refinancing or paying them off has penalties. |
| Secured or unsecured? | Unsecured | Secured | Mortgages are secured against the property. The REF loan is unsecured. |
| Interest rate | Starting @ 6.49% | Depends. 3-5% on fixed rate contracts | Mortgages will usually carry slightly lower interest rates than the REF loans |
| Amortization | Up to 15 years | Up to 30 years | Morgages can be amortized over a longer period which lowers the montly payment |
| Payment deferral | Up to 1 year no payments | N/A | We can offer up to 1 year no payments due on the REF loans. |
| Monthly payments | $179.60* | $84.12* | Depending on how much you would loan for the geothermal system. |
| *Based on $20,000 loan, 15yr amortization | *Based on $20,000 loan, 30 year amortization |