On October 8, 2026, the federal government announced the National Heat Pump Rebate, a $2 billion program to help up to 820,000 households switch to a cold-climate heat pump.

Heat pumps installed from November 1, 2026 can qualify, but you can't apply yet. The application portal opens in early 2027, and the program runs until March 2034. If you're replacing a furnace or air conditioner in Kitchener, Waterloo, Cambridge or Guelph this winter, here's what you need to know now.

How Much You Could Get

Most homeowners can get $2,000. Households with an after-tax income at or below the median for their province and household size can get up to $10,000, depending on income and the cost of the job.

Here are the Ontario income limits for the higher rebate:

Household size	After-tax household income
1 person	$46,981 or less
2 people	$92,884 or less
3 people	$119,850 or less
4 people	$146,217 or less
5 or more	$158,202 or less

The government uses your 2025 tax return to work out after-tax income: your net income (line 23600) minus your total taxes payable (line 43500), plus your spouse's or partner's. When you apply, you give your Social Insurance Number and the Canada Revenue Agency confirms the numbers.

What Your Heat Pump Needs

It must be a cold-climate heat pump on the program's eligible product list. Each model is identified by its AHRI number.
It must be able to heat your whole home. A small unit for one room won't qualify, so sizing matters.
It must be bought from and installed by an HVAC contractor. Do-it-yourself installs don't count.

There's no energy audit, before or after the install. That's a big change from the old Greener Homes Grant, which needed two.

Who Qualifies

You must own the home. It doesn't have to be your main residence, but it's one rebate per household, even if you own more than one property.
Any heating fuel can apply: natural gas, oil, propane, electricity, wood and more.
You don't have to remove your old furnace or prove it failed. Planned and emergency replacements both count.
The address can't have already received federal funding for a heat pump.

If You're Installing This Winter

Because the rebate pays out after the fact, the paperwork you keep now matters. Your contractor's receipt needs:

your name and address
the installing company's name
the make, model and AHRI number of each heat pump
the number of heat pumps installed
the total project cost, including related work like ductwork and electrical upgrades

You'll have 6 months to submit your receipts. The government hasn't said yet exactly when that window starts, so keep everything together and don't throw the invoice out.

The government also says the details may still change, and eligibility is judged by the rules in effect on your installation date. No payments go out until the program launches, and funding isn't guaranteed until your application is approved. We'll update this post when the eligible product list is published.

Combining It With Ontario's Rebate

The Prime Minister's announcement says the federal rebate can be combined with existing provincial programs. In Ontario, that means the Home Renovation Savings program:

Homes heated by electricity, oil, propane or wood: up to $7,500 for an air-source heat pump
Homes heated by Enbridge natural gas: up to $2,000 for an air-source heat pump

The Ontario rebate needs written pre-approval before installation. Install first and you lose it. The federal rebate has no pre-approval step, so the order is: get Ontario pre-approval, install, then apply federally once the portal opens.

Our Ontario heat pump rebate guide covers the Ontario amounts, the free heat pump program for income-eligible homes, and local programs in Cambridge and Guelph.

If Your Home Heats With Natural Gas

Many homes in Waterloo Region heat with natural gas. For those homes, a common setup is a hybrid system. A cold-climate heat pump handles most of the year, and your gas furnace takes over on the coldest days. With a household income above the median, that's $2,000 federally plus up to $2,000 from Ontario.

The federal government is upfront that switching from natural gas may not lower your heating bills, depending on your home and system. We'll give you an honest estimate for your house before you decide.

Kitchener homes get their natural gas from Kitchener Utilities, not Enbridge, and Ontario's gas-heated tier is written for Enbridge customers. Check your Ontario eligibility before you book.

What We Don't Know Yet

The eligible product list and its AHRI numbers
The exact date the application portal opens
How rented or leased heat pumps will be handled (the government says they may be eligible)

Watch Out for Scams

The federal government doesn't sell heat pumps door to door or make sales calls about this rebate. If someone shows up at your door claiming to be from the program, it isn't real.

Thinking About a Heat Pump?

We install cold-climate heat pumps from Mitsubishi Electric, Daikin and Carrier across Kitchener, Waterloo, Cambridge and Guelph. We'll size the system to heat your whole home, walk you through the Ontario pre-approval, and give you a receipt with everything the federal rebate asks for.

📞 519-747-7732 Get a Free Quote

Canada's New $10,000 Heat Pump Rebate: What Waterloo Region Homeowners Need to Know