If you have been researching a new heat pump or furnace lately, you have probably hit a wall of confusing, outdated information.
Here is the reality as we head into 2026: The federal Canada Greener Homes Loan (that 0% interest offer) officially closed its doors to new applicants in October 2025.
For many Ottawa homeowners, this feels like the door has slammed shut on affordable energy upgrades. But that isn’t true. The landscape hasn’t ended; it has just shifted.
As Ottawa’s local HVAC experts, AirZone HVAC Services is here to be your navigator. We have mapped out the new financial landscape for 2026, including the local loan alternative you might not know about and the new rebate structure from Enbridge.
October 8, 2026 announcement update: Canada has announced an exciting upcoming National Heat Pump Rebate, with more details to come. Applications are not open yet. The announced support is up to $10,000 for eligible below-median-income households and $2,000 for other eligible households, with approval required before purchase or installation. This is separate from the municipal loan and Ontario rebate programs discussed below. Read the linked announcement for what is confirmed so far.
The Federal Loan is Out. The “Better Homes Ottawa” Loan is In.
When the federal 0% loan ended, it left a gap. Fortunately, the City of Ottawa has a solution that is still very much active, though less advertised.
It is called the Better Homes Ottawa Loan Program (BHOL).
While it isn’t 0% interest, it is a fantastic, low-interest alternative designed specifically for local residents. Here is why it is the smart move for 2026 renovations:
- The Rate: As of late 2025, the fixed interest rate is 4.33%. While not zero, this is significantly lower than a standard bank line of credit or credit card.
- The Terms: You can amortize the loan over 20 years, keeping monthly payments incredibly low.
- The “Tie-to-Property” Advantage: Unlike a personal loan, this is a “PACE” (Property Assessed Clean Energy) model. The loan is tied to your property tax bill, not you personally. If you move, the loan (and the energy-efficient equipment) can stay with the house.
- What it Covers: Eligible heat pumps, insulation, windows and EV chargers. Natural gas-powered upgrades, including gas furnace replacements, are not funded by Better Homes Ottawa.
The New Player: Enbridge Home Renovation Savings Program (2025-2026)
With the confusion around the end of the HER+ program, Enbridge launched a new initiative in January 2025: the Enbridge Home Renovation Savings Program (HRSP).
This program is designed to pick up where previous rebates left off, but with a streamlined focus on verified energy savings.
How it differs from the old rebates:
- Heat-pump stream: A home energy assessment is not required for this HRSP stream. A participating contractor must submit the pre-installation application, and written approval is required before installation. See the official heat-pump offer.
- Hybrid Focus: There are specific incentives for “Hybrid Heating” (pairing a gas furnace with a heat pump), which is often the best setup for Ottawa’s climate.
- Program-Specific Eligibility: HRSP heat-pump rebates are not income-tested. Eligibility and rebate amounts depend on the home’s existing primary heating fuel, qualifying equipment, and whether the heat pump is owned or rented.
The Ottawa HVAC Rebate Checklist: Your 2026 Rebate Strategy
✅ Chart 1: Better Homes Ottawa Loan (BHOL) Checklist
This loan program is distinct because it is tied to the property tax roll and requires audits to verify the value of the improvements.
| Step | Action Item | Why it Matters |
| 1. Check Eligibility | Must be an Ottawa property owner with property taxes in good standing. | The loan is repaid via your property tax bill; you must have an active tax account to qualify. |
| 2. Apply & Wait | Submit the application and receive the Notice to Proceed (NTP). | Crucial: Only costs incurred after the NTP are eligible for loan funding. |
| 3. Complete Pre-Audit | MANDATORY: After the NTP, complete the pre-retrofit EnerGuide assessment. | Use the assessment recommendations to plan eligible improvements, collect quotes and submit the Funding Request Form. |
| 4. Secure Financing | Review and sign the Property Owner Agreement: the published rate is 4.33% fixed over 20 years, plus a 4% administrative charge. | The stated limit is the lower of $125,000 or 10% of the property’s assessed value, with borrowing costs included in the maximum eligible Local Improvement Charge. A 50% advance may be requested through the funding process; the City must approve and process it. |
| 5. The Install | Use a licensed HVAC contractor like AirZone HVAC Services. | Work must be completed by qualified professionals to pass the final inspection. |
| 6. Final Audit | MANDATORY: Complete the post-retrofit evaluation. | The final loan balance is only released after this audit proves the upgrades were completed. |
✅ Chart 2: Enbridge Home Renovation Savings Program (HRSP)
This chart reflects the new 2025 rules where audits are no longer mandatory for specific heat pump upgrades.
| Step | Action Item | Why it Matters |
| 1. Check Eligibility | Own an eligible Ontario home. It must primarily use either an Enbridge-supplied natural-gas furnace or boiler with an active residential account, or electric-resistance, oil, propane or wood heating with a connection to the IESO-controlled electricity grid through an Ontario local utility. | Utility service alone does not establish eligibility. The home, primary heating system and proposed equipment must meet the heat-pump stream’s rules, and written approval is required before installation. |
| 2. Book the Audit | OPTIONAL: Book a pre-retrofit audit only if you want whole-home rebates (insulation, windows). | Heat Pumps Only: An energy assessment is not required, but written pre-installation approval is mandatory. Do not install before approval. |
| 3. Choose Equipment | Select a heat pump from the Eligible Product List. | Not every heat pump qualifies. We ensure your Moovair or Lennox system is on the verified list. |
| 4. Financing | N/A (This is a rebate program, not a loan). | If you need financing, refer to the Better Homes Ottawa Loan chart above. |
| 5. The Install | Use a licensed, participating HVAC contractor such as AirZone HVAC. | Strict Rule: DIY installs or non-participating contractors are disqualified from the no-audit rebate. |
| 6. Final Audit | NOT REQUIRED for Heat Pump-only rebates. | Your participating contractor submits the photos and paperwork directly to Enbridge to trigger your rebate. |
Why Your Installer Matters More Than Ever
In the “old days,” you could just buy a furnace and be done. Today, securing thousands of dollars in rebates and low-interest financing requires strict adherence to the rules.
One wrong model number, one missed audit, or one paperwork error can cost you $5,000+.
At AirZone HVAC Services, we don’t just install equipment; we manage the process. We know exactly which heat pumps qualify for the Enbridge HRSP. We know how to work with the Better Homes Ottawa auditors.
Don’t let the end of the federal loan stop you from saving money. The roadmap for 2026 is clear, and we are here to drive you through it.
Ready to start your rebate journey? Contact AirZone Today for a Free Quote & Rebate Consultation
