New Federal Heat Pump Rebate: What Toronto Homeowners Need to Know
Big news for anyone thinking about a heat pump. On October 8, Prime Minister Mark Carney announced a new National Heat Pump Rebate: $2 billion over eight years to help households switch to heat pumps.
These are meaningful rebates that are scheduled to begin early next year. If your furnace or boiler is over 10 years old, now’s the right time to plan for its retirement.
Our free Your First Heat Pump Guidebook walks you through the steps, the current rebates and real prices from Toronto projects.
The details are still being worked out. Here’s what we know so far, what we don’t, and what you can do today.
How much are they offering?
It depends on your household income:
Below the median household income: up to $10,000
Everyone else who qualifies: $2,000
The CBC reports that the “income cut-off will be calculated in the same way that it was for the now closed oil to heat pump program.” That should follow this chart:
Can you combine it with Ontario’s rebate?
Ottawa says the new rebate “can be combined with existing provincial programs.” In Ontario, that’s the Home Renovation Savings Program (HRSP). That sounds nice, but we are being cautious: the Ontario government hasn’t confirmed whether the HRSP will still be running in 2027. We shall see!
We did a deep dive on the Home Renovation Savings Program a couple of months ago — check out the recording here.
Approval in 24 hours (yes, really)
Props to the Government for this one. When your furnace or boiler quits in January, you don’t have time to wait on approvals. Note that you’ll pay your contractor first and get the rebate after. We assume you’ll be able to combine the rebate with financing. Apply online, and the government says you’ll know if you’re approved, and for how much, within 24 hours.
When does it start?
Ottawa is aiming to launch in early 2027. That stings a bit—there are a few months of winter between now and then.
I already installed a heat pump. Do I qualify?
It’s not settled. Officials told reporters they’re “exploring options” for covering earlier installs. We’ll update this blog when we hear one way or the other.
What are the requirements?
Here’s what’s been announced:
It’s for homeowners.
The heat pump must be a cold-climate air-source model on the government’s eligible products list.
No energy audit required before or after (but it’s still a great idea! We covered why audits can save you money and avoid installation headaches in our recent webinar).
One rebate per person.
It’s built for homes whose heating has broken down or is near the end of its life.
What about gas-heated homes?
Yes! It covers just about every heating method—natural gas, diesel, oil, baseboard heaters, propane, and electric furnaces are all mentioned.
Can I keep my furnace as backup?
Many Toronto homes pair a heat pump with their existing furnace or boiler. This is called a “hybrid” setup. The government hasn’t said yet whether hybrids qualify, or whether you’d need to go fully electric. We’ll update this when it does.
I have radiators. What are my options?
Lots of Toronto homes heat with a boiler and radiators instead of ducts. Many of these homes install “ductless” (aka “mini-split”) heat pumps that have wall-mounted units throughout the house. Those are air-source heat pumps, so they look like they fit the rules as announced.
Another option is an air-to-water heat pump, which heats the water in your radiators, rather than heating the air. If those heat pumps are included in the Government’s "Eligible Products List", then they would qualify for the rebate. That list hasn’t been released yet, though.
Old furnace or boiler? Make a plan now
Most furnace replacements happen in an emergency, often on a cold night with no time to compare options. That’s usually how people end up with another gas furnace.
Fast approval helps in that moment. But it helps most if you already know what you want before your furnace or boiler gives out. If your furnace or boiler is over 10 years old, now’s the right time to plan. Our free Your First Heat Pump Guidebook walks you through the steps, the current rebates and real prices from Toronto projects.
Last updated October 8, 2026. We’ll update this post as details come out.
