Let's clear up the federal layer first, because it's where most of the confusion lives.
The Grant and Loan You Remember Are Closed
The Canada Greener Homes Grant — the program that offered up to $5,000 toward heat pumps and other retrofits — closed to new applicants in February 2024. Over its run it delivered roughly $1.8 billion in grants and supported close to 287,000 heat pump installations, so plenty of your neighbours used it. The companion Canada Greener Homes Loan, an interest-free loan of up to $40,000, stopped taking new applications on October 1, 2025. If you were already approved for that loan, your funding still stands; if you weren't, it's no longer an option.
I mention this plainly because a surprising number of websites — and even some contractors — still describe these as live. They aren't.
The Oil-to-Heat-Pump Program Has Also Closed
The Oil to Heat Pump Affordability program, usually shortened to OHPA, was the one federal program still paying homeowners through most of 2026. It was built for homes heated with oil, and it stopped taking new applications on July 31, 2026 as Ottawa winds it down. By March it had helped install more than 30,000 heat pumps, about two-thirds of them in Atlantic Canada. If you applied before the deadline, follow up with the program on your file; if you didn't, it's no longer available.
New: The National Heat Pump Rebate (Announced, Not Yet Open)
On October 8, 2026, the federal government announced a National Heat Pump Rebate: $2 billion over eight years, aimed at up to 820,000 households. Officials describe it as the successor to the Greener Homes Grant, and unlike OHPA, you don't have to be leaving oil to qualify. Here's what we know so far:
- How much: up to $10,000 for households below the median income, and $2,000 for other eligible households.
- What it covers: cold-climate air-source heat pumps on the government's Eligible Products List.
- How it works: you apply through an online portal before you buy and should get a decision, including your rebate amount, within 24 hours. After the install, you upload your receipts and the rebate is paid by direct deposit. No energy audit is required.
- When: not yet. The government is targeting early 2027, and its program page currently offers only a sign-up for updates.
Several key details haven't been published yet: the income threshold that separates the $10,000 tier from the $2,000 tier, whether the program will be retroactive (officials have said they're looking at making it retroactive to this fall, but treat that as unconfirmed until the rules are out), and whether it can be combined with provincial and utility rebates. We're following each development in our news coverage of the $2-billion program.
One more thing officials were candid about: in parts of the country where natural gas is cheap, switching a gas-heated home to a heat pump may not lower your bills. The rebate helps with the upfront cost, but the running-cost math still depends on what you're replacing.
Should You Wait for the Federal Rebate?
If your system is working fine, waiting for the portal to open is reasonable, especially if you'd qualify for the $10,000 tier. If your furnace is failing now, don't plan around a rebate that doesn't exist yet. Retroactivity isn't confirmed, and your provincial program may close first; in Ontario, for example, Home Renovation Savings is scheduled to end November 30, 2026.
There's also the Canada Greener Homes Affordability Program, which provides no-cost retrofits — including heat pumps — to lower-income households, delivered through participating provinces and territories. If your income qualifies, it's worth asking your provincial program whether you're eligible before paying for anything yourself.