Financing My Heating System Upgrade in Connecticut

Did you know that there are countless ways to finance a home heating system installation in Connecticut today? If you own your home then there’s a good chance you qualify for one of the many options available out there. You don’t need to panic; nor do you need to look anywhere else for financing. Here, or in our South Windsor office, we’ll help you navigate five (5) options for paying for your heating system replacement or upgrade. In most cases, we can help you find the best option for you, without making you feel pressured, even if you need an emergency boiler or furnace replacement.

Financing your home heating system upgrade with Imperial Oil, Plumbing and Heating company is just a call away. and you want to take steps to decrease your fuel consumption, Contact us today at 860.291.0115 to take your first step toward decreasing your fuel consumption. Want to learn more first? Keep reading…

Option 1: ENERGIZE CT HEATING LOAN

Financing at a 0.99% interest rate, up to $15,000, is available for qualified homeowners for the purchase and installation of eligible energy-saving heating equipment.

If you’re a residential customer of Eversource, you might be eligible…

You must have an electric account at the address for the installation site.
Must own the property where the new equipment is going to be installed.
You must be current with your electric utility bill and have had either:
- no late payment charges for the most recent six (6) consecutive months or;
- no more than two (2) late payment charges over the last consecutive twelve (12) months.
Equipment to be installed must meet ENERGY STAR^® or higher ratings for boilers, and electric heat pumps.
All work must be completed by Imperial Oil & Plumbing Company.

Financing Amounts and Terms

Financing is available up to $15,000.
A minimum down payment of 10% of the cost of the replacement heating boiler equipment is required.
The minimum down payment varies by type and efficiency of equipment selected.
0.99% interest rate.
No fees to you and no pre-payment penalty.
Unsecured, fixed-rate financing.
Payments sent with your monthly electric bill payments.
If the property is sold, the balance may be repaid or may be transferred to the new owner.
Financing term between 3 to 10 years based on the time it takes for the replacement heating boiler equipment to pay for itself from energy savings, plus two years.

To Apply and For More Information:

Visit ctheatloan.com to apply online now and for more details. Or call our lending partner, Capital For Change, Inc. (formerly CHIF), at 1-800-992-3665, or call us at 860.291.0115

Option 2: Connecticut Green Bank

CT Green Bank – in partnership with Energize CT and select local lenders and contractors – offers long-term, low-interest financing to help you upgrade your home’s energy performance with no money down. This is the main difference from option number one above. There is no down payment required for this program. Rates for this loan are different depending on the term of your loan, which might be a perfect fit for your needs. The Connecticut Green Bank makes loans available to nearly any type of energy savings project for your Connecticut home. The Connecticut Green Bank has contractors for over 40 types of energy efficiency upgrades, but we specialize in the heating and plumbing type projects. A few of the things they finance include:

Heating & Cooling

Air Source / Ground Source Heat Pump
Central Air Conditioning
Ductless Mini Split Heat Pumps
High Efficiency Furnace or Boiler
Natural Gas Conversion

Water Heaters

Indirect Water Heaters (Natural Gas)
Heat Pump Water Heaters
On Demand Tankless Water Heaters (Natural Gas / Propane)

Rates and terms through The Connecticut Green Bank

The Smart-E Loan rates could be the ideal fit for you. While the rates might be a little higher than with option number one,still there is no down payment required with the program. Also, the length of your loan can vary depending on the borrower and lender, not based on the specific piece of heating equipment installed. Also, and often most important to borrowers, you can use up to 25% of your loan for non-energy related measures and healthy home improvements such as new ENERGY STAR® appliances for your kitchen or bath, asbestos and lead removal.

To learn more about specific rates, starting as low as 4.49%, click here.

Eligibility Requirements

Connecticut Green Bank has some of the most basic criteria listed for requirements on their website. The requirements for The Smart – E Loan program aren’t very complicated. They have a simple checklist help you understand basic eligibility requisites. Each borrower is considered based on their individual credit circumstances by the specific lender. Look here to see if you’re a worthy applicant.

Property must be located in Connecticut.
The property must be owner-occupied.
Property must be a one (1) to four (4) unit residential building.
Condominiums must be individually metered.

Option 3: Home Equity Loan

One of the more popular ways to finance a heating system is by home equity loan. Homeowners sometimes carry a line of credit with their home mortgage provider for all types of things, including renovations, repairs and sometimes heating system upgrades. These rates are often lower than a credit card, or similar; therefore, they’re easy to manage with an existing relationship.

The HELOC, or “Home Equity Line of Credit” is the amount your creditor will let you borrow based on the equity you’ve paid toward your property. They use the property as collateral, meaning there is that additional risk. However, if you understand the terms and pay if back quickly, a Home Equity Line of Credit can be a sound investment for your heating system upgrade. To qualify for a HELOC, you must owe less on your home than the house is worth on the market today.

Interest Rates & Terms

HELOC interest rates can vary depending on the lender, borrower, and current interest rates. Some lenders offer both fixed and variable rate terms, and each have their benefits depending on the market and you. You should shop very carefully and ask lots of questions when applying and moving forward with this type of loan. With a variable interest rate, your loan payments can vary from month to month. Lenders use index and margin to calculate the rate for your line of credit. Index rates change while the bank margins remain fixed.

Option 4: Credit Card

Many people use credit cards to finance heating system installs. This might be for a variety of reasons. First, you can set the length of the credit yourself. If you want to pay off the entire install a week after paying your contractor, then you’re free to do that on your own accord. Maybe you need to space out your payments over the course of eight (8) months, for any number of reasons. If you have a good rate, a credit card might be the best payment and financing option.

Secondly, some people have access to 0% interest on purchases through a certain period, which trumps any interest rate mentioned in options one, two, or three. Of course, this is specific to each borrower. If you have that type of credit available, then it’s a great way to pay for a heating installation over just a few months. Although, some people get trapped and build up large credit card bills by not paying the minimum, which then puts purchases into a high interest rate category.

Financing