Update, October 21, 2026: The federal program page now confirms the start date. Households that meet the eligibility criteria and install an eligible heat pump on or after November 1, 2026 can apply when the portal opens in early 2027. The rebate amounts, eligibility criteria, list of eligible heat pumps and how to apply are due to be published on November 1. We’ll update this guide when they are.
Canada announced a new National Heat Pump Rebate on October 8, 2026: up to $10,000 for eligible low- to median-income households, and $2,000 for other eligible homeowners. The program is expected in early 2027. If you are planning a Toronto or GTA renovation, it is worth checking before you choose the heating system—but the announcement is not an approval for your house.
For a home with a gas furnace, two questions need separate answers: will the installation qualify, and will the new system cost less to run? A rebate reduces the purchase cost. It does not establish the best heating system for your house. Ontario also has its own rebate today, with pre-approval required before installation.
What is confirmed, and what still needs rules?
The Prime Minister’s announcement and the federal backgrounder describe the new program. The application service is still upcoming; the current government program page offers updates about launch dates and eligibility.
On a small screen, swipe the table sideways to see every column.
| Question | What is known on October 21, 2026 |
|---|---|
| How much? | $2,000, or up to $10,000 for low- to median-income households (the program page’s wording). The income threshold and calculation are due with the November 1 details. |
| Which equipment? | Eligible electric cold-climate air-source heat pumps on the program’s Eligible Products List. Do not assume every heat pump qualifies. |
| Is an energy audit required? | The federal announcement says no audit before or after installation. |
| How fast? | Application approval is promised within 24 hours. After installation and receipt submission, the backgrounder promises payment approval within five days. It does not specify when a bank will credit the deposit. |
| Can a landlord apply? | The backgrounder allows an owner to apply for an owned rental property, but limits the rebate to one per person. Claiming for that property would prevent a second claim for the owner’s residence. |
| Can provincial rebates be combined? | The announcement says yes. The combined amount for a specific installation still needs confirmation under both programs’ rules. |
| When does it start? | The portal opens in early 2027. The federal program page (updated October 21, 2026) says eligible heat pumps installed from November 1, 2026 count, for households that meet the eligibility criteria due to be published that day. |
Keep the two approval stages separate. The five-day statement concerns payment approval after receipts, not an unconditional promise that cash arrives five days after installation. The backgrounder also describes a pre-approved heat pump. How pre-approval will work for installations made between November 1 and the portal launch is part of the “how to apply” details due on November 1.
Which household income qualifies for the $10,000 tier in Ontario?
The announcement gives two amounts, but it does not yet give an Ontario household a dollar cutoff to compare with its income. On the official federal announcement and program page checked October 21, 2026, the income definition, household-size calculation and tax year for the new rebate are still unconfirmed. The program page says the eligibility criteria will be published on November 1, 2026.
Do not use an average Canadian salary or an income threshold from the older Oil to Heat Pump Affordability program to decide which amount you will receive. Those figures do not establish eligibility for the new program. Wait for its published income rules and the application decision before treating either amount as approved money.
Ontario’s existing Home Renovation Savings heat-pump amounts answer a different question: they depend on your current primary heating source and the eligible equipment. Its approval does not establish your federal income tier. Check both programs separately before subtracting rebates from the installation budget.
Does a gas-heated Toronto home qualify?
The Canadian Press reported that officials said all homes would be eligible, while also warning that switching from natural gas would not save every household money. Treat that as the announced direction; the detailed rules will decide individual eligibility, including any conditions for a hybrid system that retains a gas furnace.
The federal release’s average annual saving of $1,400 refers to homes heating with oil or electric baseboards. It is not a gas-home savings estimate. The backgrounder also discusses propane and electric resistance heating. None of those averages predicts your bill.
Ask the HVAC contractor to compare suitable options using your actual energy bills, local rates, the house’s heating needs and the proposed backup heat. Include any electrical or duct changes in the installed cost. Then compare that total with the rebate you can actually confirm. A larger rebate does not automatically make a larger system the right choice.
Ontario’s rebate is already available—and needs pre-approval
Ontario’s Home Renovation Savings heat-pump program bases its purchase rebates on the home’s existing primary heating source.
On a small screen, swipe the table sideways to see every column.
| Existing primary heat | Cold-climate air-source heat pump | Ground-source heat pump |
|---|---|---|
| Natural gas, with an active Enbridge residential account | $500 per ton, up to $2,000 | $3,000 |
| Electricity, oil, propane or wood, connected to Ontario’s electricity grid | $1,250 per ton, up to $7,500 | $2,000 per ton, up to $12,000 |
These are Ontario program amounts in Canadian dollars, not installation prices. Eligibility, equipment and capacity rules apply. Rental-equipment rebates have a separate schedule; do not use the purchase table for a rental agreement.
The owner applies through a participating HVAC contractor. Wait for pre-installation approval before the equipment is installed: Ontario says installations done before approval are ineligible. Heat pumps do not require a home energy assessment under this stream. The contractor completes the post-installation application; the program says the cheque should arrive within 60 days of its approval.
Ontario’s heat pump stream has no published calendar deadline, unlike the province’s attic insulation and assessment rebates, which have November 30, 2026 deadlines. The contractor files the post-installation application within 30 days of installation. Ontario’s participant agreement rules out other Enbridge, Save on Energy or Ontario-government rebates for the same work; it doesn’t mention federal rebates, and the federal announcement says its rebate can be combined with provincial programs. Confirm both sets of rules before you count on both.
If insulation or windows are part of the same project, those November 30 deadlines, the new November electricity prices and the full rebate table are in our guide to Ontario electricity rates from November 1, 2026.
Do not add the federal and Ontario maximums into your construction budget yet. The federal announcement permits combining programs, but your heating source, equipment, income eligibility and final conditions determine what you receive. Ask the participating contractor to identify each program and approval separately.
For insulation, windows, accessibility work or a family suite, continue with our Ontario basement renovation rebates and tax credits guide. Those programs have different purposes and application steps.
What to do before the federal portal opens
If the existing system is working and replacement is part of a planned renovation, use this period to settle the design and compare equipment. Subscribe through the official program page for the launch and eligibility rules. Make the purchase decision using costs you can carry without an unapproved rebate.
Mind the date. Installations before November 1, 2026 are outside the retroactivity period stated on the federal program page. If your current system is working safely and you were planning a replacement anyway, read the criteria and the eligible heat pump list published on November 1 before you sign, and keep the installation on or after that date. Never delay restoring safe heat to wait for a rebate.
If the furnace fails, get qualified help to restore safe heating. Do not leave the home without adequate heat while waiting for a future application portal. Before accepting a heat-pump proposal:
- Ask which current program the installation can qualify for, and obtain Ontario pre-approval where applicable.
- Get the proposed equipment models, installation scope, backup heating and any electrical or duct alterations in writing.
- Keep the itemized invoice, proof of payment, installation date and equipment records. The final federal document requirements may add to this list.
- Check the eligibility criteria and eligible heat pump list the federal page publishes on November 1, 2026. The start date alone does not establish that your particular purchase will qualify.
Make the heating decision before the renovation walls close
A heat pump may be a relatively contained installation, or it may affect work across several rooms. The difference should be established while the renovation is being planned. Natural Resources Canada notes that some installations need ductwork or electrical-service modifications, and that system sizing depends on the house’s heating and cooling loads.
Which projects this touches most:
- Whole-home renovation: size the heating for the finished, better-insulated house, not the old one.
- Home addition: new rooms add heating and cooling load. Check whether the existing system can carry it, or whether a whole-house heat pump makes sense now.
- Legal basement suite: the suite’s heating and ventilation go into the permit drawings, so decide the system then. The federal rebate is limited to one per person.
- Basement finishing and underpinning: the foundation walls are open, which is when insulating them costs the least. Ontario pays $900–$1,500 for basement wall insulation if the energy assessment happens before work starts.
Start with the house you are building toward. If the renovation will add insulation, replace windows or change the conditioned space, give that scope to the HVAC designer. Choosing equipment for the existing house without accounting for those changes can miss the heating needs of the finished project. NRCan’s heat-pump sizing guide considers building loads and existing duct capacity together.
Coordinate service routes and electrical capacity. Have the HVAC contractor identify any duct alterations, and a Licensed Electrical Contractor assess the electrical work alongside other planned loads. A panel upgrade is not automatic. In Ontario, hired electrical work must be done by a Licensed Electrical Contractor, with the applicable ESA notification and inspection process.
Keep usable space and access in the plan. Ask what indoor equipment remains, where the outdoor unit will go, and how service access, clearances, condensate and defrost water will be handled. Replacing space heating does not automatically remove the water heater. For a basement apartment, settle these details before treating the mechanical area as available living space.
Toronto lists installing or modifying heating systems as work requiring a building permit, while replacing a furnace or boiler in a house appears on its no-permit list. The scope matters; confirm the proposed heat-pump and duct alterations with Toronto Building. Our Toronto and GTA renovation permits guide explains the separate approval paths and links to the City’s requirements.
The reason to decide early is practical: service changes can be coordinated with the areas already being opened, instead of discovering after painting that another wall or ceiling needs access. Use our full-home renovation planning guide to place those decisions in the work sequence, and the older Toronto house guide to organize the initial investigation.
Where Capable fits in
If the heat pump is one part of a wider renovation, the rooms, mechanical space and electrical work need one coordinated scope. That is the conversation to bring to Capable. The program administrator decides rebate eligibility; a renovation enquiry is not a rebate application.
Read about our whole-home renovation service in Toronto, or open “Get a Quote” on this page to tell us the city, rooms involved, current heating system and planned timing. For a heat-pump-only installation under Ontario’s program, start with its participating HVAC contractor route.
Quick answers
Can I apply for the new federal heat pump rebate now?
Not yet. The portal opens in early 2027. The federal program page says the rebate amounts, eligibility criteria, eligible heat pumps and how to apply will be published on November 1, 2026. Use the sign-up on the official page for updates.
Is the $10,000 rebate available to everyone?
No. The program page describes $2,000, or up to $10,000 for low- to median-income households. The income calculation is due with the November 1 details. Treat the amount as a potential rebate until the program confirms the household and the equipment qualify.
Do I need a broken furnace or an energy audit?
The federal backgrounder includes systems approaching the end of their life, so a breakdown is not the only situation described. It says no energy audit is required before or after installation. That does not remove the need to size the equipment properly or meet installation requirements.
Will the government pay within five days?
The backgrounder promises payment approval within five days after receipts are submitted for the purchased and installed pre-approved heat pump. It describes direct deposit but does not give a bank-crediting deadline. Do not treat application approval, payment approval and receipt of funds as the same event.
Can I combine the federal rebate with Ontario’s program?
The federal announcement says its rebate can be combined with provincial programs. Both sets of rules must still be met, including Ontario’s mandatory pre-installation approval. Confirm the eligible amounts and any combined limits before subtracting them from the installation cost; adding headline maximums is not an approved claim.
Will an installation in fall 2026 qualify retroactively?
Only from November 1, 2026. The federal program page, updated October 21, 2026, says households that meet the eligibility criteria and install eligible heat pumps starting November 1, 2026 can apply once the portal launches in early 2027. Installations before November 1 fall outside that stated period. Keep the equipment and payment records either way.
What changes on November 1, 2026?
Three things. The federal heat pump rebate window opens and its detailed rules are due. Ontario’s regulated electricity prices drop about 7%. And the Ontario Electricity Rebate on hydro bills falls from 23.5% to 15.7%, so compare the full bill using your own consumption and utility charges before assuming that lower electricity prices mean lower costs.
Federal rebate and Ontario heat-pump program pages rechecked October 21, 2026; renovation-planning sources checked October 8, 2026. This guide covers the announced homeowner rebate and renovation planning. Official program rules determine eligibility and payment; your contractors and the relevant authorities determine the work required at your home.
About the team
Yan Margulis
Founder, Capable Group · Toronto & GTA
Design-build team for whole homes, additions, kitchens, bathrooms, basements and legal suites.
Planning a renovation with heating changes?
Tell us your city, rooms involved and planned timing. We’ll review the renovation scope and reply with the next step.
This is a renovation enquiry, not a rebate application.
