The New Federal Heat Pump Rebate: What Ontario Homeowners Should Do Before Applications Open in 2027

Published November 3, 2026 · Last updated November 3, 2026 · Written by the EHI Heating And Cooling team · Checked against the Government of Canada's National Heat Pump Rebate page

The Government of Canada has announced the National Heat Pump Rebate: $2,000, or up to $10,000 for income-qualified households. Applications aren't expected to open until early 2027, but eligible installations from November 1, 2026 may qualify retroactively. That leaves Ontario homeowners in an awkward gap this winter. Do you install now, or wait? And how does it fit with Ontario's own rebate, which has a strict rule about timing?

This guide covers what to do right now. For the full amounts and eligibility rules of both programs side by side, see our Ontario and federal heat pump rebate guide.

The short version

• Two separate programs: Ontario's Home Renovation Savings Program and the federal National Heat Pump Rebate. Each has its own rules, equipment list and application.
• The federal rebate is $2,000, or up to $10,000 for households at or below the median after-tax income for their province and household size.
• Installs on or after November 1, 2026 may qualify retroactively, once applications open in early 2027.
• No federal money is paid until the program launches and your application is approved. Funding is not guaranteed.
• Ontario's rebate still needs pre-approval before installation. The federal retroactive window does not change that.
• Keep every receipt. The federal program asks for specific details on them.

Should you install a heat pump now or wait until 2027?

There's no need to wait for the federal portal to open. The Government of Canada says households that meet the eligibility criteria and install an eligible heat pump on or after November 1, 2026 may be able to claim the rebate once applications open. Both emergency and planned installations are accepted, and you don't have to remove your old system or prove it broke down.

But be clear about the risk. The federal page says program details are still being finalized and can change, and that funding is not guaranteed until an application is approved. Your eligibility will be judged on the rules in effect on the day your heat pump was installed. So treat the federal rebate as a likely bonus, not a sure thing.

A good test: would the heat pump still make sense for your home without the federal money? If yes, there's little reason to wait through another winter on an old system. If the project only works with the full federal amount, it's worth a closer look at your income tier and equipment choice before you commit, and we're happy to run those numbers with you.

If your furnace fails this winter, the federal program accepts emergency replacements. Ontario's rebate is stricter, because pre-approval must be in place before the new equipment goes in. Call early and we'll tell you what timing is realistic for your situation. If you have no heat right now, our emergency HVAC service can get the house warm while the rebate side is sorted out.

The order of steps if you want both rebates

The most expensive mistake this winter will be installing first and asking about rebates later. The federal rebate can look back to November 1, 2026. Ontario's cannot look back at all. Here's the order that protects both:

1. Check your Ontario tier. Homes heated by electricity, oil, propane or wood can get up to $7,500 through the Home Renovation Savings Program. Homes heated by Enbridge natural gas get a smaller amount, commonly up to $2,000.
2. Size the heat pump for the whole home. The federal program supports systems that can heat your entire home and asks homeowners to confirm sizing with their contractor. We size every heat pump installation from a heat-loss calculation.
3. Pick a model that qualifies for both. Ontario uses NRCan's qualified products list. The federal program uses its own eligible product list, identified by the heat pump's AHRI number. We check the exact cold-climate heat pump model against both before you sign.
4. Get Ontario pre-approval. We submit it for you. No install happens before it's approved.
5. Install with an HVAC contractor. The federal program requires that the heat pump is bought from and installed by an HVAC contractor.
6. File Ontario's final documents. We submit the invoice, model and serial numbers after the install.
7. Apply for the federal rebate when the portal opens, expected in early 2027, with your receipts ready.

Whether you can actually receive both depends on meeting the eligibility rules of both programs. They are run by different governments, and each can set its own rules on combining funding. That's why we don't promise a combined figure. We check your home against each program and show you the realistic range.

How to work out if you qualify for the $10,000 tier

The higher federal amount, up to $10,000, goes to households whose after-tax income is at or below the median for their province and household size. Above that line, the rebate is $2,000. In both cases the actual amount also depends on the cost of the equipment installed.

Here's how the federal page tells you to calculate it. Take line 23600 (net income) from your 2025 tax return and subtract line 43500 (total taxes payable). If you have a spouse or common-law partner, do the same for them and add the two together.

Ontario figures in 2025 dollars, as published by the Government of Canada.

A made-up example to show the math. Say a couple with no kids has these figures on their 2025 returns. Partner one: $68,000 on line 23600 and $12,500 on line 43500, so $55,500 after tax. Partner two: $41,000 and $6,800, so $34,200. Together that's $89,700. For a two-person household in Ontario the cut-off is $92,884, so this couple would fall in the higher tier.

When applications open, you'll give your Social Insurance Number and the Canada Revenue Agency will verify your household income. You don't need to send anyone your tax return now.

The receipt checklist: what to keep for 2027

If you install before the portal opens, your receipt is your proof. The federal program says the receipt from your contractor must include:

• The name and address of the person who will apply for the rebate
• The name of the company that installed the heat pump
• The make, model and AHRI number of the installed equipment
• The number of heat pumps installed
• The total cost of the project, including directly related work such as ductwork and electrical upgrades

Check your invoice before you pay the final balance, and ask for a corrected copy if anything is missing. The federal page also says receipts must be submitted within 6 months. It doesn't spell out yet exactly when that clock starts, so plan to apply as soon as the portal opens. Keep a paper copy and a scan somewhere you'll find them in the spring.

Who can and can't claim the federal rebate

Based on the rules published for the retroactive period, you can claim if you live in Canada and own the home, and the heat pump is on the federal eligible product list and was installed by an HVAC contractor. The home doesn't need to be your main residence, so a property you rent out can qualify.

A few rules catch people out:

• One rebate per household, even if you own more than one property.
• No repeat funding at the same address. If federal money has already been provided for a heat pump at that address, it doesn't qualify again.
• Rented or leased heat pumps may be eligible once the program officially launches, with details still to come.

The rebate covers homes heated today by electricity (including electric furnaces and baseboards), natural gas, oil, propane, diesel, coal or wood. The right system depends on what you have now. Homes with ductwork usually suit a central heat pump. All-electric homes on baseboards or an old electric furnace often go with a heat pump and electric air handler. Homes without ducts can use a ductless mini split or a multi-zone ductless system, as long as the setup can heat the whole home.

If your home is heated with natural gas

Gas-heated homes qualify for the federal rebate, but the Government of Canada is upfront about one thing: for households heating with natural gas, switching to a heat pump may not lower heating bills, depending on the region, the system chosen and other factors. We'd rather say that plainly too.

For many Enbridge gas homes in Ontario, the practical answer is a hybrid system: a heat pump that heats through spring, fall and milder winter days and replaces your air conditioner, with a high-efficiency gas furnace taking over in the deep cold. Whether that pays off depends on your gas and hydro rates and how your house holds heat. We run those numbers for your home before you decide, and we'll tell you if a straight furnace and AC replacement makes more sense.

Watch out for rebate scams

Any new rebate brings people who use it as a sales pitch. A few things to keep in mind:

• There's nothing to apply for yet. The federal portal is expected to open in early 2027, and the official way to get launch updates is the sign-up on the Government of Canada page.
• Your Social Insurance Number is given when you apply through the program, once it opens. Be wary of anyone who asks for it now to "register" you.
• There's no free heat pump program for Ontario homeowners. Rebates reduce the cost after approval.
• Be cautious with any ad promising one big combined number from both programs. What you receive depends on your eligibility for each.
• Nobody can guarantee the federal rebate. Not even the government does until your application is approved.

The safest source is the program itself: National Heat Pump Rebate, Government of Canada.

How EHI helps

We've worked on Ontario homes for more than 20 years, and we handle the rebate side as part of the job. For a heat pump project this winter, that means a heat-loss calculation for whole-home sizing, a model checked against both the NRCan list and the federal eligible product list, Ontario pre-approval filed before installation, and a written, guaranteed quote showing the price before rebates and the Ontario rebate estimate.

We install Midea, Kepler and Lennox cold-climate heat pumps, and 0% financing for 3, 6 or 9 months can cover the gap while you wait for rebate payments. After the install, yearly heat pump maintenance keeps the system running at its rated efficiency.

We cover homes across Ontario, including local heat pump installation in Toronto, Mississauga, Brampton, Vaughan, Markham, Oshawa, Hamilton, Barrie and Ottawa.