Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
In 2027 Ontario homeowners can use two main heat pump rebates. Home Renovation Savings pays up to $7,500 for a cold-climate air-source unit in homes heated by electricity, oil, propane or wood, or up to $2,000 in Enbridge gas homes. The new federal rebate, opening early 2027, adds $2,000, or up to $10,000 for lower incomes.
This guide is for Ontario homeowners, including landlords, who are thinking about a heat pump in 2027 and want to know exactly which rebates exist, how much they pay and what order to do things in. As of November 2026 there are two main rebates, one provincial and one new federal one, plus free installs for some lower-income homes and a City of Toronto loan for the rest.
What heat pump rebates are available in Ontario in 2027?
Four programs matter for a heat pump in 2027: two rebates, one free install for income-qualified homes and one Toronto loan.
| Program | Who runs it | What you can get | Status (Nov 2026) |
|---|---|---|---|
| Home Renovation Savings (heat pump stream) | Enbridge Gas and Save on Energy, supported by Ontario | Up to $7,500 (cold-climate air source) or $12,000 (ground source); less for gas-heated homes | Open |
| National Heat Pump Rebate | Government of Canada | $2,000, or up to $10,000 for households below median income | Portal opens early 2027; installs from 1 Nov 2026 may qualify |
| Energy Affordability Program | Save on Energy | Free cold-climate heat pump for eligible electric- or oil-heated homes | Open, income-tested |
| Home Energy Loan Program (HELP) | City of Toronto | Loan up to $125,000, repaid on the property tax bill | Open; current rates valid to 31 Dec 2026 |
Source: homerenovationsavings.ca; Environment and Climate Change Canada (page updated 5 Nov 2026); saveonenergy.ca; City of Toronto. Checked 10 November 2026.
The old federal Canada Greener Homes Grant is gone. The Government of Canada says 31 December 2025 was the last day to submit documents, and the Greener Homes Loan is closed to new applications. If you read an older article that promises $5,000 in federal grants plus a $40,000 interest-free loan, it is out of date.
How much is the Ontario heat pump rebate under Home Renovation Savings?
The provincial rebate is paid per ton of heating capacity, and the rate depends on how you heat your home today. A “ton” is just a size unit for heating and cooling equipment. The program measures capacity at 8.3°C, which is how your contractor will size the claim.
| Your current main heat | Cold-climate air-source heat pump | Ground-source heat pump |
|---|---|---|
| Electricity, oil, propane or wood | $1,250 per ton, up to $7,500 | $2,000 per ton, up to $12,000 |
| Natural gas from Enbridge | $500 per ton, up to $2,000 | $3,000 |
| Renting the heat pump (any fuel) | $500 per ton, up to $2,000 | $3,000 |
Source: Home Renovation Savings, heat pumps page and help centre, checked 10 November 2026. Amounts can change; confirm before you sign.
Two quick examples using those rates. A 3-ton cold-climate unit in a house heated by electric baseboards works out to 3 x $1,250 = $3,750. The same 3-ton unit in a gas-heated house works out to 3 x $500 = $1,500. The big gap is deliberate: the program pays more where a heat pump replaces costly electric resistance, oil or propane heat.
No home energy assessment is needed for this stream. That is different from insulation and windows, which need an assessment before and after. My guide to heat pumps in Toronto and what they do for resale covers how the systems work if you are starting from zero.
Who qualifies for the Ontario heat pump rebate?
The rules are short but strict. According to the program’s heat pump page and help centre, you must:
- Own the home. Tenants cannot apply. Where a home is rented out, the owner applies, and an owner can apply for each property they own.
- Be on the right utility. Gas-heated homes must be active Enbridge Gas residential customers. Homes heated by electricity, oil, propane or wood must be connected to the Ontario grid.
- Live in an eligible home type. Detached, semi-detached, row house, townhome or a mobile home on a permanent foundation. Condo apartments are not on the list. Homes occupied for six months or less count as new builds and do not qualify.
- Be installing a first heat pump. If the home already has a heat pump for space heating, it is not eligible.
- Buy a listed model. The unit must be on Natural Resources Canada’s qualified products list for cold-climate air-source or ground-source heat pumps.
- Use a participating contractor and get pre-approval. Work done before approval does not qualify.
A few details trip people up. A heat pump can be paired with a new or existing gas furnace as backup, but the furnace itself gets nothing. For mini-splits, both the indoor and outdoor units must be new. Oil-heated homes must size the new electric system to cover the full heating load.
What is the new federal National Heat Pump Rebate for 2027?
This is the biggest change for 2027. Environment and Climate Change Canada says the National Heat Pump Rebate will open through an online portal in early 2027, with $2 billion to support up to 820,000 households. The program is expected to run until March 2034.
- Amount: $2,000 for households above median income, and up to $10,000 for households below it. The final amount depends on income and the cost of the equipment.
- Retroactive start: cold-climate heat pumps installed from 1 November 2026 until the portal opens may qualify. You apply after launch, and receipts must be submitted within six months.
- No energy audit, any fuel: no audit is needed, and electricity, gas, oil, propane and wood homes are all listed.
- Ownership: you must own the home, but it does not have to be your main residence, so rental properties count. Only one rebate per household, even if you own several properties.
- No repeat funding: the address must not have received federal money for a heat pump before.
For the higher amount, after-tax household income must be at or under the government’s thresholds, which are in 2025 dollars. Ontario’s limits are below. You work out household income as net income (line 23600) minus total tax payable (line 43500) from the 2025 return, for you and any spouse or common-law partner combined.
| Household size | Ontario after-tax income limit for the higher rebate |
|---|---|
| 1 person | $46,981 |
| 2 people | $92,884 |
| 3 people | $119,850 |
| 4 people | $146,217 |
| 5 or more | $158,202 |
Source: Environment and Climate Change Canada, National Heat Pump Rebate page, modified 5 November 2026. Parameters are still being finalized and may change.
The federal receipt must show your name and address, the installer, each unit’s make, model and AHRI number, and the total project cost. Ask for that invoice now, even if you install before the portal opens.
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Can you combine the federal and Ontario heat pump rebates?
Probably, but nobody can promise it yet. The Home Renovation Savings help centre says you cannot stack its rebate with other incentives from Enbridge Gas, Save on Energy or the Ontario government, but you can stack with other funders as long as the total does not go above 100% of the cost to supply and install the heat pump. The federal rebate is a different funder, so the provincial rules allow it.
What is missing is the federal side. As of 10 November 2026, the National Heat Pump Rebate page does not say how it treats provincial rebates. Until it does, budget as if you will get the provincial rebate for sure and treat the federal one as likely but not guaranteed. The federal page itself says funding is not guaranteed until an application is approved.
How do you apply for a heat pump rebate in Ontario, step by step?
- Check eligibility first. Fill in the short form on the Home Renovation Savings heat pump page. You get the list of participating HVAC contractors by email.
- Get two or three quotes from listed contractors. The contractor must be registered before your install, not after. Ask each one for a heating load calculation, the model’s listing on the NRCan qualified products list, its AHRI number and the rated capacity at 8.3°C.
- Let the contractor file the pre-installation application. Do not book the install until it is approved in writing.
- Install, then the contractor files the post-installation application. The program says the cheque should arrive by mail within 60 days of approval.
- Apply federally when the portal opens in early 2027. Keep the invoice and proof of payment. You will need your Social Insurance Number if you are claiming the higher, income-tested amount, because it is checked with the Canada Revenue Agency.
Both governments warn about rebate scams. Home Renovation Savings says Enbridge Gas and Save on Energy do not sell the program by phone or door to door, and Environment and Climate Change Canada says it does not go door to door or make marketing calls about heating equipment. Never give your SIN or banking details to someone who calls you first. And never let a contractor start before the provincial pre-approval arrives; that single mistake costs people the whole rebate.
Are there free heat pumps for low-income households in Ontario?
Yes, for some homes. Save on Energy’s Energy Affordability Program now offers a cold-climate air-source heat pump at no cost to income-eligible households whose homes are heated by electricity or oil, with funding help from Natural Resources Canada for oil-heated homes. The program also covers free insulation, draft proofing and smart thermostats for those homes.
You can qualify if your before-tax household income last year was at or below the program limit, for example $48,220 for one person, $68,193 for two and $96,439 for four. You also qualify if someone in the home received certain benefits in the past 12 months, such as the Guaranteed Income Supplement, ODSP, Ontario Works or the Ontario Electricity Support Program. The program says people who own, rent or lease their home and are on the utility account can apply.
How can Toronto homeowners pay for the rest of a heat pump?
Rebates rarely cover the full bill, so financing matters. The City of Toronto’s Home Energy Loan Program lends up to $125,000 for energy work, including air-source heat pumps and the electrical upgrades they often need. Heat pump-only projects no longer need an EnerGuide assessment before and after.
Rates valid until 31 December 2026 are fixed at 3.83% for 5 years, 4.43% for 10, 4.85% for 15 and 5.12% for 20 years, plus a 2% administration charge. The 20-year term is only for projects that include a heat pump, solar, geothermal or new windows. The loan cannot exceed 10% of your property’s assessed value or $125,000, whichever is less, and the property must have an “M” postal code. You repay it on your property tax bill in 11 monthly instalments a year.
One real estate point: the loan is attached to the property, not to you. If you sell before it is paid off, the City says the new owner takes over the balance. In practice buyers and their lenders will ask about it, so plan to either pay it out on closing or disclose it clearly in the listing and the offer.
Does a heat pump add value when you sell?
A heat pump rarely adds a line-item premium the way a new kitchen can. What it does is remove objections. Buyers in the GTA have had more time to look and more room to negotiate over the past two years. In Mississauga, for example, average days on market for detached homes rose from 22 in January to October 2024 to 31 in the same months of 2026, and in Brampton from 22 to 30 (TRREB MLS data via REALM, municipality level). When buyers have time, an old furnace and no central air become bargaining chips.
If your furnace or air conditioner is near the end of its life, get heat pump quotes before you sign for a like-for-like replacement, especially if you heat with electricity, oil or propane, where the provincial rebate is largest. If you are on Enbridge gas and your furnace is fine, there is no rush; wait for the federal portal details in early 2027. Whatever you do, keep every invoice, approval letter and model number in one folder. When you sell, that folder answers the buyer’s inspector in five minutes and supports your price.
Before a bigger renovation, my notes on which renovations pay back before you sell and the upgrades that add value in Toronto help. Landlords should also read the 2026 rule on tenants installing air conditioners.
What to do next
- Confirm your main heating fuel and home type, and check that your home is not already heated by a heat pump.
- Fill in the Home Renovation Savings eligibility form and get quotes only from listed contractors.
- Ask each contractor for the model’s NRCan listing, AHRI number, rated capacity at 8.3°C and a full itemized invoice.
- Wait for written pre-approval before any work starts, then sign up for federal updates so you can apply when the portal opens in early 2027.
- If you are in Toronto and need financing, apply to HELP early, because lender consent and funding offers take time.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Is there a heat pump rebate in Ontario in 2027?
Yes. The Home Renovation Savings program, run by Enbridge Gas and Save on Energy with Ontario support, pays heat pump rebates as of November 2026, and the federal National Heat Pump Rebate is due to open in early 2027. Ontario homeowners may be able to use both, as long as total incentives do not exceed the cost of the installed heat pump.
How much is the heat pump rebate in Ontario?
In Ontario, Home Renovation Savings pays $1,250 per ton, up to $7,500, for a cold-climate air-source heat pump in homes heated by electricity, oil, propane or wood, and $500 per ton, up to $2,000, in Enbridge gas-heated homes. Ground-source systems get up to $12,000 or $3,000. These are the November 2026 amounts and can change.
What is the National Heat Pump Rebate in Canada?
The National Heat Pump Rebate is a federal program opening through an online portal in early 2027. It pays $2,000 to households above median income and up to $10,000 below it, for eligible cold-climate heat pumps. Installs from 1 November 2026 may qualify retroactively. Environment and Climate Change Canada says the details are still being finalized.
Can I get a heat pump rebate if I heat with natural gas in Ontario?
Yes, but it is smaller. In Ontario, an Enbridge Gas customer heating with a gas furnace or boiler gets $500 per ton, up to $2,000, for a cold-climate air-source heat pump under Home Renovation Savings in 2026, and can keep the furnace as backup. The federal rebate opening in 2027 also lists natural gas as an eligible current fuel.
Do I need an energy audit to get a heat pump rebate in Ontario?
No. As of November 2026, Ontario’s Home Renovation Savings heat pump stream does not require a home energy assessment, and the federal National Heat Pump Rebate says no audit is needed before or after installation. You do need a participating contractor and written provincial pre-approval before the heat pump is installed.
Can a landlord get a heat pump rebate for a rental property in Ontario?
Yes. Ontario’s Home Renovation Savings says the owner must apply where a home has tenants, and an owner can apply for each property they own. The federal National Heat Pump Rebate says the home does not need to be the owner’s main residence, but only one federal rebate is allowed per household. Tenants cannot apply for either.
Can I get a heat pump rebate for a condo in Ontario?
Usually not for a condo apartment. In 2026, Ontario’s Home Renovation Savings heat pump rebate is limited to detached, semi-detached, row house, townhome and mobile homes on a permanent foundation. Condo townhouse owners should check eligibility and their condo corporation’s rules on outdoor units before getting quotes. The federal rebate’s home-type rules have not been fully published.
Will I get the heat pump rebate if I install before pre-approval?
No, not the Ontario one. Home Renovation Savings says pre-approval is mandatory and installs done before approval are not eligible. The federal rebate works differently: installs from 1 November 2026 may qualify retroactively once the portal opens in early 2027, but payment is not guaranteed until an application is approved.
Are there free heat pumps in Ontario for low-income households?
Yes, for some homes. Save on Energy’s Energy Affordability Program offers a cold-climate air-source heat pump at no cost to income-eligible Ontario households heated by electricity or oil, as of November 2026. A one-person household qualifies with before-tax income up to $48,220, or by receiving benefits such as the Guaranteed Income Supplement, ODSP or Ontario Works.
Sources
- Home Renovation Savings — Heat pumps
- Home Renovation Savings — Help and support
- Environment and Climate Change Canada — National Heat Pump Rebate (One million home energy retrofits)
- Government of Canada — Canada Greener Homes Initiative
- Save on Energy — Energy Affordability Program
- City of Toronto — Home Energy Loan Program (HELP)
- Save on Energy — Home Renovation Savings Program
Related reading
- Biggest Condo Developers in Toronto: Track Records Buyers Should Check
- Is It a Good Idea to Buy a Condo in Toronto in 2027?
- Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
- Can You Buy a House With No Down Payment in Ontario?
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.
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Market data is sourced from the Toronto Regional Real Estate Board. Information is deemed reliable but is not guaranteed. This tool does not provide an appraisal or a formal opinion of value, and it is not a substitute for advice on your specific property. Jatin Dua, Broker of Record, RE/MAX Quantum Realty.
