Rental Property Heating Program Loan

*All eligible equipment must be installed by an approved Network of Excellence contractor(s).

What financing is available under this program?

Eligible applicants can apply to receive a repayable loan towards 100% of eligible invoiced costs for the purchase and installation of program eligible energy efficient equipment upgrades by a Network of Excellence contractor(s). Eligible invoiced costs include necessary upgrades to the residential rental property’s existing electrical service to accommodate the new heating equipment/system.

The amount of financing available will be based on the debt servicing capacity of the applicant and availability of security.

The loan is repayable over a period of up to 10 years and is interest free to the borrower; interest costs during the term of the loan will be paid on behalf of the borrower by the Department of Environment, Energy and Climate Action.

Finance PEI must approve the loan before any work begins on the project. The loan is not available for new construction or for projects already completed.

Am I eligible to apply? 

Eligible applicants will be the registered owners of the existing long term residential rental property to be upgraded. The rental property must be located on Prince Edward Island and be available for occupancy year-round.

* The RPHP is not available for projects involving new home construction or business

* Applicant must be a permanent resident of Prince Edward Island. Permanent residents located outside of Prince Edward Island are excluded. 

Are there other requirements for this program? 

• As an applicant, you will be able to evidence reasonable creditworthiness and capacity to repay the loan;
• The applicant and/or shareholder must not have any defaulted outstanding debt obligation on file in the Province’s Central Default Registry;
• Loans will be secured by a promissory note, a first charge specific security agreement on the financed equipment and a notice of security interest for the full amount of the loan over the real property location. All loans over $10,000 will be additionally secured by a registered collateral mortgage over the applicant’s real property in which the equipment being purchased is installed;
  • Please note, legal costs to perform best available mortgage will be the responsibility of the property owner.
• The energy efficient home heating equipment/system being purchased and installed must be program eligible and be installed by an efficiencyPEI approved Network of Excellence contractor; and
• Loan proceeds will be remitted directly to the vendor, unless the applicant/borrower can provide written evidence that the invoice has already been paid.

How do I apply? 

An eligible applicant should follow these steps to apply: 

1. Obtain a quote for the proposed work from a Network of Excellence contractor. You will need to submit this quote with your Finance PEI loan application. 
2. Download, complete, and sign the Rental Property Heating Program Loan Application and submit to Finance PEI by email, fax, regular mail, or deliver by hand. (A separate completed and signed application will be required for each individual rental property).
3. When submitting your loan application to Finance PEI, be sure to include:
   • Accountant prepared financial statements, including balance sheet and income statement, for the most recent year-end available.
     Alternatively, if the applicant is not incorporated, the sole proprietor/partnership will provide the Statement of Real Estate Rentals schedule from the applicant’s most recent personal income tax return(s), along with the applicant's most recent Notice of Assessment;
   • Interim income and expense statement and balance sheet for the current year-to-date;
   • A copy of the written quote(s) from the Network of Excellence Contractor(s) you select to complete the work.
   • Two of the following as proof of identifty e.g. a copy of a Birth Certificate, Canadian Passport, or Driver’s license for each applicant.
4. Approved loan applicants will receive an Offer to Finance letter from Finance PEI, outlining the amount and terms under which financing has been approved. You may share this letter with your Network of Excellence contractor.
5. Have work completed by your Network of Excellence Contractor. Afterwards, submit invoices and Certificate of Compliance (issued by contractor) to Finance PEI.
6. Finance PEI will contact you to schedule an appointment for you to sign the loan documentation, after which the loan proceeds will be remitted directly to your Network of Excellence contractor(s).