Federal Government Announces $2 billion Investment to Deliver One Million Home Retrofits Across Canada

October 8, 2026

The federal government has announced a $2 billion investment to deliver one million home retrofits across Canada. These energy-efficient retrofits will lower heating costs for Canadians and reduce emissions.

First, they are launching a new National Heat Pump Rebate to help up to 820,000 households make the switch to more efficient electric heat pumps:

• Lowering the up-front cost of purchasing an electric heat pump: Eligible below-median-income households will receive a rebate of up to $10,000 for the purchase of an electric heat pump. Other eligible households will receive $2,000. Both rebates can be combined with existing provincial programs to bring the cost down even further.
• Providing help when it is needed most: Every year, about one million Canadian homes replace their heating system. More than 80% of the time, it is because the old system broke down without warning. This new program will confirm approval within 24 hours, and a heat pump can be installed as quickly as a furnace.

Heat pumps are more efficient, cleaner, and safer than oil and electric furnaces. They will save an average of $1,400 a year for households currently heating with oil or electrical boards.

Second, they are working with the Canada Mortgage and Housing Corporation (CMHC) and the Canada Infrastructure Bank (CIB) to help apartment building owners retrofit 280,000 units over the next eight years. They will do this by:

• Providing affordable financing for retrofits: Through its Multi-Unit Mortgage Loan Insurance product, CMHC will help retrofit up to 250,000 additional units. This CMHC product has already supported over 140,000 energy-efficient units to date.
• Unlocking investment in apartment buildings: Through its Building Retrofits Initiative, the CIB will support apartment and multi-unit residential building owners to retrofit 30,000 units.
• Supporting building owners every step of the way: To advance building retrofits, we are also renewing the Deep Retrofit Accelerator Initiative, which supports building owners through all stages of the retrofit process.

Combined, these measures will support one million home retrofits and reduce Canada’s emissions by over 25 megatonnes – the equivalent of taking nearly eight and a half million cars off our roads for one year.

Heat Pump Program Eligibility

• Households below the median income can receive up to $10,000; other eligible homeowners can receive $2,000.
• To qualify for the Rebate, heat pumps must be on the ‘Eligible Products List’, an extensive selection of over 100,000 options at various price points and configurations, all suited for the Canadian climate.
• Only one Rebate per person will be issued, e.g., if a landlord elects to install a heat pump in an owned property, that person cannot also receive the Rebate for a heat pump installed in their own residence.
• No pre- or post-energy audits are required.

An Easy-to-Use Online Application Portal, Quick Approvals Process, and Direct Deposit Payments

• Eligible homeowners can submit an application using an easy-to-use, secure online portal.
• The simplified application form requires only basic personal information from the homeowner and details of the eligible heat pump they wish to purchase, and it takes minimal time to complete.
• This new program will confirm approval within 24 hours, and a heat pump can be installed as quickly as a furnace.
• Following the purchase and installation of the pre-approved heat pump, homeowners will submit receipts through the online portal, and payment will be approved within five days.

Multi-Unit Mortgage Loan Insurance Product

The Canada Mortgage and Housing Corporation (CMHC) will help rental housing providers access private financing from approved lenders on more favourable terms to undertake energy-efficiency retrofits in existing rental buildings. These investments can improve building quality and energy performance for tenants while reducing energy use. Operating through CMHC’s existing mortgage loan insurance framework, the initiative will leverage private capital, rather than relying on new direct government spending. CMHC receives insurance premiums and fees for the coverage, typically paid by borrowers, such that the product is delivered at no cost to taxpayers. Through this initiative, CMHC is expected to support retrofits in up to 250,000 rental housing units over the next eight years.

The Building Retrofit Initiative

This Canada Infrastructure Bank (CIB) initiative will target up to an additional 30,000 residential units in Multi-Unit Residential Buildings (MURBs), by mobilizing more private sector investment in building retrofits. The CIB will leverage its existing government allocation, meaning no new funding is required from the federal government.

Deep Retrofit Accelerator Initiative

The Government of Canada will invest nearly $110 million over three years starting in 2027-28 to renew the Deep Retrofit Accelerator Initiative. This initiative funds third-party accelerators that help building owners tackle complex retrofits by guiding them from planning through to implementation. These accelerators also help build a knowledgeable and innovative retrofit sector, through training activities, to meet growing demand and to maximize energy and cost savings for building residents. The Deep Retrofit Accelerator Initiative builds a pipeline of projects for new retrofit financing, including through the Canada Infrastructure Bank and the Canada Mortgage and Housing Corporation and ensures that investment dollars go as far as they can go.

Quick facts

• The National Heat Pump Rebate program will be available through an online portal, with no energy audits before or after installation. Approvals will be available within 24 hours, making it easier to get a replacement installed quickly when a system breaks without warning – which accounts for around 80% of replacements each year.
• Today’s announcement builds on previous measures to support energy efficiency, including the Oil to Heat Pump Affordability program and the Canada Greener Homes Affordability program.
• In May 2026, the Prime Minister launched Powering Canada Strong, Canada’s new national electricity strategy, which aims to double the capacity of Canada’s electricity grid by 2050 and supply clean, reliable, and affordable power across the country. The strategy also aims to connect Canada’s electricity grids, build the workforce needed for the electricity system of the future, and increase domestic production of the technologies and components needed to power it.
• The strategy is expected to deliver up to $15 billion in total energy savings by 2050 and lower total energy costs for seven in 10 Canadian households.
• Under the strategy, the Government of Canada committed to expanding support for energy-saving retrofits for up to one million households through financing, grants, and complementary measures, including by making it easier for Canadians to switch from more expensive heating sources to electric heat pumps.
• Approximately 80% of Canada’s electricity is already generated from non-emitting sources. By expanding electrification across households, commercial buildings, transport, and industry, Canada has the potential to reduce economy-wide emissions by as much as five times current electricity-sector emissions.

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