Building a custom home in Niagara is a dream for manyโand a significant financial investment. Fortunately, in 2025, there are a number of rebates, grants, tax credits, and municipal incentives available to help make your custom home more affordable.
Whether youโre building in St. Catharines, Niagara Falls, Grimsby, or anywhere in between, hereโs everything you need to know about the financial programs available to new custom homeowners in the Niagara Region.
GST/HST New Housing Rebate (Owner-Built Homes)
If youโre building your own custom home as your primary residence, you may qualify for a partial refund of the HST paid on construction costs, building materials, and contracted services.
Key Benefits:
- Federal Rebate: Up to $6,300 (phased out between $350,000โ$450,000 home value)
- Ontario Rebate: Up to $24,000 with no home price limit
You must apply within 2 years of the home’s completion using the following forms:
- Federal Form GST191: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/gst191.html
- Ontario Form RC7191-ON: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc7191-on.html
Canada Greener Homes Loan
Although the Canada Greener Homes Grant has ended, custom home builders can still access the Greener Homes Loan to finance eco-friendly upgrades.
What You Get:
- Up to $40,000, interest-free
- Repayable over 10 years
- Covers heat pumps, solar panels, insulation, windows, and more
Requires an EnerGuide energy evaluation before beginning work.
Learn more and apply here:
https://natural-resources.canada.ca/energy-efficiency/home-energy-efficiency/canada-greener-homes-initiative/canada-greener-homes-loan
Purpose-Built Rental Housing Rebate
If your custom home includes a purpose-built rental unit, you may be eligible for a full rebate of the GST.
Eligibility:
- Building must have 4+ self-contained units or 10+ suites
- Intended for long-term rental use
Rebate details and application info:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4231/gst-hst-new-residential-rental-property-rebate.html
Municipal Incentives in the Niagara Region
Smart Growth Development Charge Rebates (Niagara Region)
Up to 50% off Regional Development Charges for custom homes built in designated urban areas or brownfield sites.
Learn more:
https://www.niagararegion.ca/government/incentive-programs/smart-growth.aspx
St. Catharines Development Charges Grant
Eligible buildsโlike those in the Urban Growth Centre can receive 100% relief on City Development
Charges.
Details here:
https://www.stcatharines.ca/en/planning-and-development/development-charges.aspx
Property Tax Deferrals for Seniors & Persons with Disabilities
Low-income seniors or persons with disabilities may qualify to defer annual property tax increases, making custom homeownership more accessible.
Learn more:
https://www.niagararegion.ca/government/budget-taxes/default.aspx
Accessible Home Tax Exemption
If your new custom home is built with accessibility in mind, you could qualify for a property tax exemption on 10% of the homeโs assessed value.
Program details:
https://www.niagararegion.ca/government/budget-taxes/default.aspx
Final Thoughts
Building a custom home in Niagara doesnโt have to break the bank. With the right mix of federal, provincial, and municipal incentives, you can reduce your costs, increase your homeโs long-term value, and build more sustainably.
Pro Tips:
- Apply earlyโsome programs require approval before construction begins
- Keep all invoices and documentation
- Ask your builder or consultant about programs they can apply for on your behalf
Have questions or want help navigating these programs? Letโs chatโIโd be happy to help you make the most of every available incentive.
