Buying an Energy Efficient New Home in Ontario: Labels, Questions and Upgrades

To buy an energy efficient new home in Ontario, look beyond "built to code" and ask the builder for proof: a third-party label such as ENERGY STAR for New Homes, R-2000 or Net Zero, an airtightness test result, and a proper heating and cooling load calculation. New homes are far more efficient than older ones by default, but the gap between a code-minimum house and a well-built one can still be significant.

This guide explains what the Ontario Building Code already covers, what the voluntary labels mean, and which upgrades are worth paying for before construction starts.

What does the Ontario Building Code already require?

Energy efficiency for new houses in Ontario is set out in Supplementary Standard SB-12 of the Ontario Building Code. Builders can comply by following a prescriptive package (set insulation levels, window performance and equipment efficiency) or by showing through energy modelling that the house performs at least as well.

In practice, that means a new home typically has:

• Attic insulation around R-60, depending on the compliance package.
• Insulated basement walls and well-insulated above-grade walls.
• Double- or triple-glazed low-e windows.
• A high-efficiency heating system (new gas furnaces sold in Canada must be at least 95% AFUE) or a heat pump.
• Mechanical ventilation, usually an HRV or ERV.
• Airtightness that commonly tests around 2.5–3.5 ACH50, compared with 7–15 ACH50 in many older homes.

That is a strong baseline. The catch is that code describes the minimum a builder can legally deliver, and compliance packages allow trade-offs. A house can meet code with better equipment and less insulation, for example, which helps on paper but locks in more heat loss for the life of the building.

Which labels identify an energy efficient new home in Ontario?

Voluntary labels require independent verification by an energy advisor, including blower door testing. Natural Resources Canada administers ENERGY STAR for New Homes and R-2000; the Canadian Home Builders' Association runs the Net Zero Home Labelling Program.

Label	What it means	Verification
Ontario Building Code (SB-12)	Legal minimum for all new homes	Municipal building inspection; airtightness testing depends on compliance path
ENERGY STAR for New Homes	Built to perform better than code, with efficient equipment and ventilation	Energy advisor modelling and blower door test
R-2000	Higher standard for efficiency, airtightness and indoor air quality	Energy advisor and NRCan-licensed builder
Net Zero Ready / Net Zero	Very efficient home designed so on-site renewable energy can match annual use (Net Zero Ready has the efficiency but not yet the panels)	Energy advisor, CHBA program

Ask for the EnerGuide rating label or report, which shows estimated annual energy use in gigajoules. Lower is better, and it lets you compare homes of similar size directly. Our home energy assessment guide explains how EnerGuide ratings work.

Note: Program names and requirements are periodically updated. Confirm a builder's claimed label on natural-resources.canada.ca and ask to see the certificate or label, not just the brochure.

What questions should you ask the builder?

Bring this list to the sales centre and ask for written answers:

1. Which label, if any, will the home carry? Is it included in the price or an upgrade?
2. What was the airtightness result on a recent model of this home? Under 2.5 ACH50 is very good for a production builder.
3. Was a room-by-room heating and cooling load calculation done? Oversized systems cycle on and off, waste energy and dehumidify poorly in summer. See our sizing guide.
4. What heats the home? Gas furnace, cold-climate heat pump, or both? What is the heat pump's rated capacity at −15 °C or colder?
5. Is the water heater, furnace or HVAC equipment rented? Many Ontario builders install rental water heaters, and some install rental HVAC equipment. Ask for the agreement, the monthly fee and the buyout terms before you sign the purchase agreement. Our water heater rental guide covers what to look for.
6. Is there an HRV or ERV, and will someone show me how to use and maintain it? Many owners never clean the filters or adjust the settings.
7. What are the window ratings? Look for the U-factor (lower is better) or ENERGY STAR certification.
8. Is the garage or driveway EV-ready? A 240 V circuit or conduit is far cheaper during construction.
9. What size is the electrical service? 200 A leaves room for a future heat pump, EV charger and induction range.

Which upgrades are worth paying for before you close?

Builders offer many upgrades, and most are cosmetic. A few energy upgrades are much cheaper during construction than later.

Upgrade	Why it is worth considering now	Typical priority
Cold-climate heat pump instead of AC (or alongside the furnace)	Replaces the AC you would get anyway and adds efficient heating	High if offered at a fair price
EV-ready circuit or conduit	Avoids opening finished walls later	High if you may own an EV
Extra attic insulation	Inexpensive to add while access is easy	Medium
Triple-glazed windows on north or exposed sides	Improves comfort near windows	Medium; long payback on energy alone
Upgraded ERV/HRV with better controls	Better comfort and humidity control	Medium
Drain water heat recovery	Captures heat from shower drain water; easy to install before finishing the basement	Medium in larger households
Solar-ready conduit and roof planning	Keeps options open for later	Low cost; useful if you may add solar later

Upgrades with no energy benefit, such as premium countertops, can be added later. Things inside walls, under floors and in the mechanical room cannot.

Tip: Ask for upgrade prices as separate line items. Some builders bundle "energy packages" that include items you do not need.

After you move in

New homes still need attention. Within the first year:

• Learn your thermostat, HRV/ERV and humidifier settings. New homes are airtight, so ventilation is what keeps indoor air healthy and humidity in check. Our HRV and ERV guide and winter humidity guide explain how.
• Expect some window condensation in the first winter as building materials dry out. Run the ventilation system as designed.
• Register equipment warranties and keep the commissioning paperwork.
• Report deficiencies through your Tarion new home warranty process within the required timelines.
• Choose your electricity price plan deliberately rather than keeping the default.

Frequently asked questions

Is a new home always more efficient than a renovated older one?

Usually, but not always. A carefully renovated older home with deep insulation, air sealing and a heat pump can outperform a code-minimum new build. Compare EnerGuide ratings when you can.

Does a Net Zero home have no energy bills?

Not quite. A Net Zero home is designed so that on-site generation matches its annual energy use, but you still pay fixed delivery and account charges, and net metering credits in Ontario expire after 12 months and are not paid out in cash.

Can I get rebates on builder upgrades?

Rebate programs such as the Home Renovation Savings Program are generally aimed at existing homes and owner-occupied retrofits, often with pre-approval required. Do not assume a builder upgrade qualifies; check current rebates and the official program terms.

Why does my new house feel humid or have condensation on windows?

Airtight new homes trap moisture from cooking, showers and drying building materials. Run your HRV or ERV continuously on low, use bathroom and kitchen fans, and keep winter indoor humidity around 30–40%, lower in very cold weather.