Canadian credit union Vancity has launched a financing option designed to help homeowners invest in home improvements aligned with fire prevention recommendations in British Columbia (BC).
The scheme was in collaboration with FireSmart BC, a provincial wildfire prevention programme that provides free home assessments and practical guidance, in response to growing concern over the impact of wildfires.
Homeowners are increasingly looking to protect their properties from climate-related risks, said Vancity. An analysis of its mortgage portfolio showed that 33% of its existing mortgages have some degree of wildfire exposure, underlining the importance of the new financing option.
To access the financing, residents in participating communities across BC must complete a FireSmart BC Wildfire Mitigation Program Assessment, to receive a personalised report setting out recommended actions to improve a property’s wildfire resilience.
Examples of eligible improvements include non-combustible roofing and siding, ember-resistant vents, and vegetation management. Any eligible upgrades recommended by the report can then be financed through Planet-Wise Home Renovation lending, subject to approval.
Related: Canadian government invests $53.4m in climate retrofits at housing co-op
Traditionally, Vancity’s Planet Wise Home Renovation financing has focused on energy efficiency improvements and emissions reduction measures – but is now being expanded to “help homeowners adapt to the growing impacts of climate change”. Financing options range from term loans, unsecured lines of credit and credit line mortgages with rates starting at prime plus 0.75%, and amortisation of up to 15 years.
“While many FireSmart BC recommendations are free or low-cost, some larger improvements may be financially out of reach,” said FireSmart BC programme lead Rachel Woodhurst. “Partnering with Vancity’s Planet Wise Home Renovation program offers homeowners a practical approach to reduce financial barriers, and provides an important example of how financial institutions can help turn wildfire resilience guidance into action.”
Earlier this year, Vancity reported a sharp rise in profits to CA$70m, and announced plans to distribute $21m towards community initiatives and grants that advance affordable housing, equity and reconciliation, climate action, co-ops and local economies.
