Better Homes Ottawa: updated heat-pump incentives and retrofit financing
Eligible Ottawa homeowners can finance approved home-energy upgrades through a City loan and may qualify for additional heat-pump incentives.
The current published offer includes $700 per ton for qualifying cold-climate air-source heat pumps, $1,000 per ton for ground-source heat pumps and a limited-time $600 assessment-related loan reduction. These are benefits for eligible loan-program participants, not automatic discounts on every HVAC installation.
AirZone helps you plan the HVAC portion: equipment selection, a clear installation scope and the documents needed to review the proposed system.
Higher incentives for qualifying heat pumps
The live Better Homes Ottawa program page now lists the following amounts. The City and program administrator confirm the eligible capacity and incentive for each approved project.
| Equipment or component | Published incentive | Important distinction |
|---|---|---|
| Central cold-climate air-source heat pump | $700 per ton | The equipment must meet the City’s incentive criteria. |
| Mini-split or multi-split cold-climate air-source heat pump | $700 per ton | The same published rate now applies to central and qualifying ductless systems. |
| Ground-source heat pump | $1,000 per ton | The ground-source equipment must qualify. |
| Eligible geothermal well or loop | $5 per metre | Vertical well depth for a vertical system, or horizontal piping length for a horizontal system. |
Example: if the administrator approves a qualifying air-source system at 3 tons, the published rate gives a $2,100 heat-pump incentive. This is an illustration, not an approval or a quote; the accepted capacity and project conditions determine the result.
Source check: the live program page shows the amounts above, while its linked incentive PDF still contains older rates. Have the administrator confirm the applicable amount and current form for your file before committing. No effective date for the increased rates is stated on the live page.
How the $600 assessment offer works
A reduction of the approved loan
For a limited time and subject to available funding, eligible participants can receive a $600 reduction on their approved loan after completing the program.
This is not an upfront cash refund, and it does not mean both EnerGuide visits will necessarily cost $600 or less. Budget for the assessment costs and confirm eligibility before relying on the reduction.
Not combined with HRSP’s $600
The Better Homes Ottawa offer excludes applicants receiving the separate $600 HRSP assessment rebate. Do not budget for both assessment incentives.
A homeowner doing only an HRSP space-heating heat-pump installation does not automatically earn the HRSP assessment rebate. That stream does not require an assessment.
You still need the pre- and post-retrofit EnerGuide assessments required by the loan program. At least one completed improvement must be recommended in the Renovation Upgrade Report.
Current loan terms and costs
Better Homes Ottawa is municipal financing repaid through a Local Improvement Charge on the property tax account. The standard published loan is not interest-free.
October 8, 2026 update: The newly announced National Heat Pump Rebate is separate from this municipal loan and is not open for applications yet. It does not make Better Homes Ottawa interest-free or remove its assessment and Notice to Proceed requirements. Confirm any interaction before including it in your borrowing plan.
| Term | Current position |
|---|---|
| Interest and repayment term | 4.33% fixed over 20 years. |
| First-loan minimum | $10,000. |
| Stated maximum | $125,000 or 10% of the property’s current assessed value, whichever is lower. The assessment is the MPAC value used for property taxes, not the home’s asking price. |
| Administrative charge | 4% of the total loan value, added to repayment. |
| Actual borrowing room | The administrator states that borrowing costs are included in the maximum eligible Local Improvement Charge. Ask for the approved principal, fee, interest and repayment schedule—not just the headline ceiling. |
| Repayment method | Property-tax Local Improvement Charge. The current agreement requires the City’s monthly Pre-Authorized Debit plan during repayment. |
| Early repayment | A one-time full lump-sum repayment is permitted without penalty; the current FAQ identifies this as the available early-payment option. |
| Second application | A second loan may be possible within the overall property limit; the published second-loan minimum is $5,000. |
If you are considering other ways to pay, compare AirZone’s HVAC financing options using total borrowing cost, timing and repayment flexibility—not the interest rate alone.
Who and what may qualify?
Property and owner requirements
- An eligible residential property in Ottawa with a City property-tax account.
- Detached, semi-detached, townhouse or residential multi-unit buildings of three storeys or less.
- City property taxes, utility bills and other City obligations in good standing over the past five years, or an acceptable credit check where required.
- No enrolment in the City’s Tax Deferral Program or CMHC’s Mortgage Deferral Program.
- The required property-owner consent, agreements and pre- and post-retrofit assessments.
For new homeowners with less than five years of payment history, the published FAQ says a credit score is requested and identifies 600 as the minimum. Final approval belongs to the City.
Heat-pump incentive criteria
- Air-source: listed on NRCan’s cold-climate heat-pump list and available in Canada.
- Air-source: capacity maintenance of at least 80%, rated heating capacity of at least 12,000 BTU/h and cooling-season noise rating of 55 dB or less.
- Ground-source: listed on NRCan’s ground-source heat-pump list and a cooling-season noise rating of 55 dB or less.
- Provide indoor/outdoor model identification or the AHRI reference requested by the incentive form.
Equipment may qualify for loan financing without meeting the additional heat-pump incentive test. An HRSP listing does not, by itself, establish eligibility for the City incentive.
| Proposed work | How it may fit |
|---|---|
| Space heating and cooling | Eligible air-source or ground-source heat-pump installations. |
| Hot water | Eligible high-efficiency electric or heat pump water heaters; other listed water-heating measures require project review. |
| Ventilation and controls | HRV/ERV equipment, thermostats, controllers and certain heat-distribution or duct-sealing work. |
| Supporting electrical work | Electrical equipment or panel work required to enable an eligible energy improvement, subject to approval. |
| Gas furnace or gas water heater | Natural gas-powered upgrades are not funded through this program. |
A broader retrofit may also include eligible insulation, windows, solar or other improvements completed by the appropriate trades. AirZone’s role is the HVAC scope; this guide does not imply that AirZone provides every measure on the City’s list.
The application and installation sequence
Receive your Notice to Proceed before incurring costs you want covered. The program says earlier costs and upgrades are not eligible. A contractor’s quote is not a City approval.
Apply and receive the Notice to Proceed
The owner applies through Better Homes Ottawa. If eligible, the City issues a Notice to Proceed setting out the maximum loan value and program terms.
Complete the initial EnerGuide assessment
Follow the approved sequence and obtain the Renovation Upgrade Report. Identify at least one recommended eligible improvement to complete.
Collect quotes and request funding
Obtain itemized quotes and the model or AHRI information needed for a heat-pump incentive. Submit the Funding Request Form and disclose other expected rebates.
Review and sign the property agreement
Confirm approved costs, incentives, fee, repayment schedule and any requested advance. Up to 50% can be requested toward upfront project costs; it is not an instant payment.
Complete the approved retrofit
Coordinate the HVAC work, any other trades and the post-retrofit EnerGuide assessment. Keep invoices and payment records, and have scope changes approved where required.
Submit completion documents
Provide the Project Completion Report, final invoices and receipts, and the required EnerGuide information. The City finalizes disbursement, eligible incentives and repayment.
This sequence is important for a heating replacement in Ottawa. If the home needs a safe replacement immediately, discuss the timing before assuming municipal financing can fund an urgent installation.
Can Better Homes Ottawa be combined with HRSP?
Potentially, but the same project must satisfy both programs independently. HRSP’s heat-pump stream requires its own participating contractor and written pre-installation approval, while Better Homes Ottawa requires the loan application and assessment process.
Disclose expected rebates in the Funding Request Form and actual rebates in the Project Completion Report. Ask the administrator how outside rebates change the amount financed; do not subtract every incentive from the price and then borrow the same costs again.
- HRSP excludes another Enbridge Gas, Save on Energy or Ontario-government incentive for the same heat-pump measure.
- Where other funding is permitted, total heat-pump incentives cannot exceed eligible supply-and-installation costs.
- The Better Homes Ottawa $600 assessment reduction cannot be combined with the HRSP $600 assessment rebate.
Where AirZone fits in the process
AirZone can assess the HVAC requirements, compare suitable heat-pump systems and water-heating options, prepare the installation quote and supply equipment and completion records. The homeowner remains responsible for the official loan application, energy assessments and property agreement.
Our recommendation should work for your home even before financing is considered. We review comfort, cold-weather performance, electrical needs, equipment access, maintenance and backup heating alongside the program requirements.
Better Homes Ottawa questions
Is Better Homes Ottawa a rebate or a loan?
It is primarily a repayable City of Ottawa loan for eligible home retrofits. Qualifying loan participants may also receive heat-pump incentives and a limited-time assessment-related loan reduction. The National Heat Pump Rebate announced October 8, 2026 is a separate upcoming federal program and is not open for applications yet. It does not remove the municipal loan’s interest, assessment or Notice to Proceed requirements.
What are the current heat-pump incentive amounts?
The live program page lists $700 per ton for qualifying central, mini-split and multi-split cold-climate air-source heat pumps; $1,000 per ton for qualifying ground-source heat pumps; and $5 per metre of eligible vertical well depth or horizontal loop piping. Confirm the applicable amount for your approved file.
How is the heat-pump incentive paid?
The program’s incentive form describes applying the incentive after project completion to reduce the total loan repayment amount. It is not a universal standalone rebate for homeowners outside the loan program.
Does the program reimburse my energy audit?
The current offer is a $600 reduction on the approved loan after program completion for eligible participants. Funding is limited. It is not an upfront cash payment or a guarantee that the full cost of the required assessments will be covered.
Can I receive the $600 assessment reduction and HRSP’s $600 assessment rebate?
No. The Better Homes Ottawa assessment reduction is only available to applicants who are not receiving the separate $600 assessment rebate from HRSP.
What are the loan rate, fee and term?
The standard published terms are 4.33% fixed interest over 20 years, plus a 4% administrative charge. Review the City’s approved repayment schedule and total borrowing cost before signing.
How much can I borrow?
The first-loan minimum is $10,000. The stated maximum is the lower of $125,000 or 10% of the property’s assessed value, but the City determines actual borrowing room, including the applicable financing costs. A second application may have a $5,000 minimum within the overall limit.
Can I start the work before the Notice to Proceed?
No. The program states that costs incurred before the Notice to Proceed are not eligible. Follow the required application, assessment and funding sequence before committing eligible project costs.
Are gas furnaces and gas water heaters covered?
No. Better Homes Ottawa does not finance natural gas-powered upgrades such as gas furnaces or gas water heaters. Eligible heat pumps, electric or heat pump water heaters, ventilation and supporting work can be reviewed separately.
Does an HRSP-eligible heat pump automatically qualify for the City incentive?
No. Better Homes Ottawa has its own equipment criteria, including its air-source capacity-maintenance and cooling-season noise requirements. Loan eligibility, City incentive eligibility and HRSP eligibility must each be checked.
Can I repay the loan early or sell my home?
The current program allows a one-time full repayment without penalty. The loan is attached to the property; review the agreement and obtain appropriate advice about its treatment when selling or refinancing.
How long do I have to complete the program?
The published guidance encourages completion within one year of receiving the Notice to Proceed. A six-month extension can be provided if required, but should be requested and confirmed rather than assumed.
Can AirZone arrange my City loan approval?
AirZone can support the HVAC scope, quote and equipment documentation. The City and program administrator make the financing and incentive decisions; the homeowner completes the official application and required agreements.
Plan the HVAC upgrade before you commit to the loan
Get a clear installation scope, check the equipment criteria and compare the complete project cost with AirZone.
Program information checked September 28, 2026. This article explains published terms, not individual credit approval or a financing commitment. Incentives, funding, eligibility and terms may change. The City’s approved agreements and the administrator’s written confirmation govern each project. AirZone is not the lender or program administrator.
