Ottawa unveils $2-billion home retrofit plan
Ottawa is committing $2 billion to a new home retrofit program that it says will improve the energy efficiency of 1 million homes across Canada.
The centrepiece is a National Heat Pump Rebate intended to reach as many as 820,000 households. Eligible households earning below the median income could receive up to $10,000 toward an electric heat pump, while other qualifying households would receive $2,000. The federal rebates could also be combined with existing provincial incentives.
The government says the program will use an online application portal, require no energy audits before or after installation and provide approvals within 24 hours. The expedited process is intended to accommodate households replacing heating systems that fail unexpectedly, which Ottawa says account for more than 80% of replacements.
Households switching from oil heating or electric baseboards could save an average of $1,400 annually, according to federal estimates.
“Affordable housing is also about affordable energy bills,” Housing and Infrastructure Minister Gregor Robertson said in the announcement. “By supporting energy efficient retrofits in apartment buildings and multi-unit housing, we’re helping lower costs for Canadians, improve housing quality, and build more sustainable communities.”
CMHC financing to support apartment retrofits
The plan also includes support for retrofits at 280,000 apartment units over the next eight years.
Through its Multi-Unit Mortgage Loan Insurance program, the Canada Mortgage and Housing Corporation is expected to help finance improvements at as many as 250,000 additional units. Ottawa says the insurance product has already supported more than 140,000 energy-efficient units.
The Canada Infrastructure Bank will support upgrades at another 30,000 units through its Building Retrofits Initiative. The government is also renewing the Deep Retrofit Accelerator Initiative, which provides technical support to building owners as projects move through planning, financing and construction.
The new package follows the closure of the Canada Greener Homes Loan to new applicants in October 2025. That program offered interest-free loans of up to $40,000 for a wider range of improvements, including insulation, windows, doors, heat pumps and renewable-energy systems.
As CMT reported when the program closed, Ottawa had committed more than 120,000 loans worth approximately $2.9 billion. Unlike the newly announced heat-pump rebate, the former loan required homeowners to obtain energy assessments before and after completing their renovations.
Energy-efficiency advisers criticized the timing of the closure, warning that the loss of the loan program, following the earlier end of the Canada Greener Homes Grant, could leave some planned projects without financing and lead to further job losses in the sector.
The new plan shifts away from broadly available interest-free renovation loans, instead combining direct heat-pump rebates with mortgage insurance, infrastructure financing and technical support for larger residential buildings.
Ottawa has not yet provided an application launch date, the income thresholds that will determine eligibility or complete details on how the federal rebate will interact with provincial programs.
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Last modified: October 8, 2026
