Current Grants and Incentives for Ottawa Homeowners in 2025: A Complete Guide

Jun 3

Buying a home or completing major renovations can be one of the biggest financial decisions you make. Fortunately, if you are purchasing or upgrading a home in Ottawa in 2025, there are numerous grants, loans, rebates, and tax credits available to help. Whether you are a first-time buyer or a current homeowner looking to complete energy-efficient improvements, understanding the available programs can lead to significant savings.

This guide outlines the most relevant homeowner incentives available in Ottawa and Ontario in 2025, including updated eligibility criteria, loan amounts, and best practices to maximize your benefits.

Home Renovation Incentives for Ottawa Homeowners

1. Home Renovation Savings Program (Ontario-Wide)
Launched in early 2025, the Home Renovation Savings Program offers rebates covering up to 30 percent of the cost of energy-efficient home upgrades. Administered by Enbridge Gas and the Independent Electricity System Operator (IESO) under the Save on Energy™ brand, eligible upgrades include:

ENERGY STAR® windows and doors
Insulation upgrades (attic, walls, and basement)
Air sealing and draft-proofing
Installation of smart thermostats
Air-source and geothermal heat pumps
Solar panels and battery storage systems

For example, rebates can reach up to $8,900 for insulation upgrades and $100 per rough opening for qualifying new windows or doors.
Official Source: ClimateCare Home Renovation Savings Program

2. Better Homes Ottawa – Loan Program
The City of Ottawa’s Better Homes Loan Program offers low-interest loans of up to $125,000 or 10 percent of a home's current value (whichever is less) to help finance energy-efficient home upgrades. Eligible improvements include:

Air-source and ground-source heat pumps
New insulation
High-efficiency windows
Solar energy installations
Electric vehicle charging stations

Income-qualified homeowners may be eligible for a 0 percent interest loan repayable over a 20-year term.
Official Source: Better Homes Ottawa Loan Program

3. Canada Greener Homes Loan
As part of the federal government's Canada Greener Homes Initiative, eligible homeowners can apply for an interest-free loan of up to $40,000 to complete energy-efficiency retrofits. The loan must be repaid within 10 years and is intended to cover major retrofits such as:

Insulation
Windows and doors
Renewable energy systems (e.g., solar panels)
Air-sealing measures
Heating system upgrades

This program can be combined with other rebate programs to maximize savings.
Official Source: Canada Greener Homes Loan

4. Residential Protective Plumbing Program (Ottawa-Specific)
To help prevent basement flooding, the City of Ottawa offers the Residential Protective Plumbing Program (RPPP). Rebates cover a portion of the costs to install eligible protective plumbing measures such as:

Backwater valves
Sump pumps
Sewer lateral repairs or replacements

In February 2025, updates to the program increased eligible rebate amounts and expanded the range of services covered.
Official Source: Ottawa Residential Protective Plumbing Program

Incentives for First-Time Home Buyers in Ottawa

1. Home Buyers' Plan (HBP)
The Home Buyers' Plan allows eligible first-time homebuyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to use toward the purchase of a home without immediate taxation. Participants must repay the withdrawn amount over a 15-year period.
Official Source: Government of Canada - Home Buyers' Plan

2. First-Time Home Buyers' Tax Credit (HBTC)
The First-Time Home Buyers' Tax Credit offers a non-refundable tax credit of up to $1,500, designed to help offset closing costs such as legal fees, inspections, and disbursements.
Official Source: ThinkInsure - First-Time Home Buyer Incentives

3. Ontario Land Transfer Tax Rebate
First-time homebuyers in Ontario may qualify for a rebate of up to $4,000 on the provincial portion of their land transfer tax. This incentive significantly reduces the upfront costs associated with purchasing a home.
Official Source: The Mortgage Advisors - Ontario Land Transfer Tax Rebate

Additional Tax Credits and Rebates for Homeowners

1. Home Accessibility Tax Credit (HATC)
The Home Accessibility Tax Credit allows homeowners aged 65 and older, or those who qualify for the Disability Tax Credit, to claim up to $20,000 in eligible home renovation expenses, resulting in a tax credit of up to $3,000. Eligible expenses include modifications such as installing ramps, widening doorways, and building accessible bathrooms.
Official Source: Government of Canada - Home Accessibility Expenses

2. Multigenerational Home Renovation Tax Credit (MHRTC)
Introduced in 2023 and continuing through 2025, the Multigenerational Home Renovation Tax Credit is a refundable tax credit of 15 percent on up to $50,000 in qualifying renovation expenses. It supports the creation of a secondary unit within a home to accommodate a related senior or a disabled adult.
Official Source: Government of Canada - Multigenerational Home Renovation Tax Credit

How to Maximize Your Savings

Combine Programs Strategically
Many grants and loans can be used together. For example, pairing the Better Homes Ottawa Loan with the Home Renovation Savings Program can maximize your total rebate amount while reducing out-of-pocket costs.
Schedule Energy Audits Early
Programs such as the Home Renovation Savings Program require both pre-upgrade and post-upgrade energy audits by a licensed energy advisor. Schedule these audits early to ensure eligibility and avoid delays.
Stay Updated on Program Changes
Grant and incentive programs can change frequently. Always refer to official government and city websites for the most current information or speak with a professional familiar with the 2025 eligibility rules.
Work with Certified Contractors
Ensure that the contractors you hire are registered with the appropriate rebate programs. Work done by uncertified professionals may disqualify you from receiving your rebate or loan.

In 2025, Ottawa homeowners and first-time buyers have more opportunities than ever to make their homes more efficient, affordable, and sustainable. Whether you are planning major renovations or preparing to purchase your first property, these grants, loans, and incentives can significantly reduce your costs. By staying informed and taking advantage of the available programs, you can invest in your home while also contributing to a greener future.

If you are considering buying or renovating a home in Ottawa this year, the team at New Purveyors is here to help you navigate not only the real estate market but also the incentive programs that can maximize your investment.