On October 8, 2026, the federal government announced a new National Heat Pump Rebate Program, offering up to $10,000 to eligible below-median-income households and $2,000 to other qualifying homeowners.
How Does a Heat Pump Work?
A heat pump provides both air conditioning in summer and heating in winter.
During summer, it removes heat from inside your home and releases it outdoors, just like a conventional air conditioner.
During winter, the process reverses. It extracts heat from outdoor air and transfers it indoors, even when temperatures fall below freezing.
Unlike conventional furnaces, heat pumps transfer heat rather than generate it by burning fuel, potentially reducing energy consumption.
What Are the Benefits?
Homeowners may enjoy improved year-round comfort, lower energy costs, and reduced emissions.
Savings can be particularly attractive for homes heated by oil, propane, or electric resistance systems. Natural gas users should compare operating costs carefully.
My Advice
Before replacing your furnace or air conditioner, compare installation costs, available rebates, and long-term savings.
Final eligibility requirements are still pending. An informed decision today could mean greater comfort and lower household expenses tomorrow.
Source: Government of Canada, October 8, 2026.
Maurice Kwok ・ 郭澤文
Mortgage Broker, CPA, MBA ・ 粵語 ・ 國語
FSRA-licensed Mortgage Broker (Licence #M13000496)
Sherwood Mortgage Group (FSRA Brokerage Lic.#12176)
Your trusted mortgage guide since 1995.