Your 2026 Guide to Ontario Home Improvement Grants, Rebates and Smarter Renovation Financing

Updated October 13, 2026 | By Charlotte Ferguson, REALTOR® & Mortgage Agent Level 2

What if your next home renovation could make your home more comfortable, lower your utility bills, and give you an opportunity to pay down your mortgage?

That is something worth exploring.

Many Ontario homeowners are surprised to discover how much financial assistance may be available for home improvements. From insulation and energy-efficient windows to heat pumps, accessibility modifications and secondary suites, there are programs designed to help make certain upgrades more affordable.

But here's where things get particularly interesting.

You may be able to pay for eligible renovations using your savings or funds from refinancing your mortgage, collect approved rebates afterward, and then put that money directly back against your mortgage principal.

It's a strategy that can help homeowners improve their property while reducing the long-term cost of borrowing.

Let's look at what's available in Ontario, how the different programs work, and where your mortgage fits into the picture.

First, How Does the Renovate, Rebate and Repay Strategy Work?

Imagine your home needs several improvements. Perhaps the windows are getting drafty, your insulation needs attention, or you're thinking about replacing an aging heating system.

You receive quotes totalling $30,000.

Rather than emptying your savings account, you explore whether refinancing your mortgage, a home equity line of credit (HELOC), or another financing option makes financial sense.

You complete the qualifying improvements and submit the required documentation for eligible rebates.

For illustration, let's assume your approved rebates total $7,500.

The result?

You've completed $30,000 in improvements, reduced the net project cost to $22,500, and potentially used $7,500 in rebates to reduce your mortgage principal.

That's money working twice: first to improve your home, and then to help reduce your debt.

This is an illustrative example, not a guaranteed rebate package. Actual financing costs, eligibility, program limits and mortgage prepayment rules apply.

Ontario Home Improvement Rebates Available in 2026

1. Home Renovation Savings Program

Potential rebates: up to $12,000 for certain heat pumps, $10,000 for solar and battery storage, and $7,700 for qualifying insulation upgrades.

Ontario's Home Renovation Savings Program is offered by Enbridge Gas and Save on Energy, with support from the Ontario government.

It is one of the most useful programs to investigate before beginning an energy-efficiency renovation.

These are different program streams, and the maximum advertised amounts do not necessarily apply to every home or combine into one total.

For example, heat-pump rebates depend on the existing heating fuel, the type and capacity of the equipment, and whether the installer participates in the program.

Before you renovate: Insulation, windows, doors, air sealing and heat-pump water-heater rebates generally require an initial home energy assessment and at least two qualifying upgrades. Separate streams have their own contractor and application requirements.

How you get paid: Many approved rebates are issued after the work and required documentation have been completed, making them particularly relevant to the renovate-and-repay strategy.

Explore the Home Renovation Savings Program

2. Energy Affordability Program

Potential benefit: qualifying energy-efficiency improvements installed at no cost.

If your household meets the income requirements, Ontario's Energy Affordability Program may provide eligible upgrades without the homeowner having to pay for them.

Depending on your home and eligibility, improvements may include:

• Energy-efficient appliances

• LED lighting

• Draft proofing

• Insulation

• Energy-saving equipment

• Certain cold-climate heat pumps

This program is especially valuable for households that need efficiency improvements but may not have sufficient savings or borrowing capacity to finance them.

How you receive assistance: Eligible upgrades are provided directly, rather than reimbursed afterward.

Explore the Energy Affordability Program

3. Enbridge Gas Home Winterproofing Program

Potential benefit: free insulation and draft-proofing improvements.

Eligible lower-income households with qualifying Enbridge Gas service may receive a home energy assessment, insulation and air-sealing improvements at no cost.

Some participants may also qualify for smart thermostats and additional energy-saving upgrades.

Homeowners and renters may qualify, depending on program requirements.

This is another example where the best financial strategy may be avoiding the renovation expense altogether rather than borrowing money to complete the work.

Explore the Home Winterproofing Program

4. Ontario Renovates Program

Potential assistance: forgivable loans and accessibility grants, with amounts determined locally.

Ontario Renovates helps eligible lower-income homeowners with necessary repairs and accessibility modifications.

Possible eligible work includes roofing, plumbing, heating, electrical systems, structural repairs, accessibility ramps and bathroom modifications.

The program is administered locally, which means funding limits, qualification requirements and application periods vary by municipality.

For example, Waterloo Region advertises up to $25,000 in forgivable loans for qualifying repairs and accessibility work. Other municipalities have different arrangements, sometimes including a separate accessibility grant.

Important: A forgivable loan isn't the same as an ordinary cash rebate. Loan forgiveness may depend on continuing to own and occupy the property and complying with program conditions.

Waterloo Region Ontario Renovates

5. Home and Vehicle Modification Program

Potential assistance: up to $15,000 for eligible home modifications.

Administered by March of Dimes Canada, this provincially funded program assists eligible individuals living with mobility-related disabilities.

Support can be used for essential home modifications that improve safety, access and independence.

The program is financially assessed and has specific eligibility requirements.

Explore the Home and Vehicle Modification Program

Federal Tax Credits and Mortgage-Related Refunds

Some renovation savings aren't paid through a traditional grant program. Instead, they may be available through your income tax return or mortgage insurance.

6. Multigenerational Home Renovation Tax Credit

Potential refundable federal tax credit: up to $7,000 for qualifying renovations completed in 2026.

Are you considering creating a self-contained suite for a senior parent or an adult family member who qualifies for the Disability Tax Credit?

This federal tax credit may help.

Eligible renovations can include creating a secondary living space with its own entrance, kitchen, bathroom and sleeping area, subject to the specific family relationship and other eligibility rules.

Up to $50,000 in qualifying expenses may be claimed for an eligible renovation. At the 2026 federal credit rate of 14%, that represents a potential maximum refundable credit of $7,000.

Unlike a non-refundable tax credit, a refundable credit may generate a tax refund even if the credit exceeds the income tax otherwise payable.

Mortgage strategy: If you finance the renovation, an eventual tax refund could be considered for a lump-sum mortgage payment, subject to your lender's rules.

Explore the Multigenerational Home Renovation Tax Credit

7. Home Accessibility Tax Credit

Potential federal non-refundable tax credit: up to $2,800 for 2026.

This credit supports eligible home modifications for people aged 65 or older and people who qualify for the Disability Tax Credit.

Qualifying improvements may include accessible bathrooms, ramps, widened doorways, safety features and other modifications designed to improve mobility or reduce injury risks.

The annual eligible expense limit is $20,000, and the credit is calculated using the applicable federal rate.

Because it is non-refundable, it reduces federal income tax payable rather than guaranteeing a cash payment.

Learn about the Home Accessibility Tax Credit

8. Ontario Seniors Care at Home Tax Credit

Potential refundable provincial tax credit: up to $1,500.

Eligible Ontarians aged 70 or older may receive assistance with qualifying medical expenses, including certain accessibility-related home modifications for severe and prolonged impairments.

Income limits and medical expense thresholds apply.

Explore Ontario's Seniors Care at Home Tax Credit

9. CMHC Eco Improvement

Potential refund: 25% of an eligible CMHC mortgage insurance premium.

This program is especially interesting from a mortgage-planning perspective.

Homeowners who purchased an existing property with CMHC-insured mortgage financing and complete at least $20,000 in qualifying energy-efficiency improvements may be eligible for a partial mortgage insurance premium refund.

Eligible categories include building-envelope improvements, mechanical systems and renewable energy installations.

Applications generally must be submitted within two years of the mortgage closing date.

This isn't a refund of 25% of your renovation bill. It's a refund calculated on the eligible CMHC mortgage insurance premium.

Explore CMHC Eco Improvement

Extra Opportunities for Waterloo Region Homeowners

There are some particularly interesting programs available closer to home.

10. RetrofitWR: Waterloo Region

Eligible GrandBridge Energy customers in Cambridge and North Dumfries can access low-interest financing at 2.5% for qualifying energy retrofits.

The program also advertises heat-pump incentives of $2,500 for qualified ducted systems or $1,000 per eligible ductless mini-split unit, up to $2,500.

A free Energy Coach service is available more broadly across Waterloo Region. Additional income-based support may apply.

This is primarily a financing program with some incentives, not a general renovation grant.

Explore RetrofitWR

11. Kitchener Additional Dwelling Unit Grant

Thinking about converting a basement or adding a backyard dwelling?

The City of Kitchener offers grants designed to offset certain development charges when eligible additional dwelling units are created.

Depending on the unit and circumstances, the grant can cover some or all applicable development charges.

This isn't a grant toward every construction invoice, but reducing development charges may meaningfully reduce the total cost of a qualifying secondary-suite project.

Explore Kitchener's Additional Dwelling Unit Grant

12. Waterloo Region Secondary Suite Funding

The Region of Waterloo also offers funding opportunities through Ontario Renovates to create eligible affordable secondary suites.

Home value, tenant income, affordable rent requirements and other program conditions apply.

Explore Waterloo Region Secondary Suite Funding

13. City of Waterloo Stormwater Credits

The City of Waterloo offers eligible property owners credits of up to 45% on their stormwater utility charges when qualifying rainwater management features are installed and maintained.

Examples include approved rain barrels, cisterns and infiltration systems.

This is a reduction in ongoing utility charges rather than a cash renovation grant, but it's another opportunity to make your home improvements work financially.

Explore Waterloo Stormwater Credits

Other Municipal Programs Worth Checking

Home improvement incentives vary across Ontario. Some notable examples include:

Your municipality may also offer targeted incentives for heritage restoration, flood protection, water conservation or affordable housing projects.

Always confirm whether an application window is open and whether funds remain available.

Coming Soon: Canada's New National Heat Pump Rebate

On October 8, 2026, the federal government announced a new National Heat Pump Rebate intended to support households replacing existing heating systems with eligible electric heat pumps.

The announced incentives include:

• Up to $10,000 for qualifying below-median-income households.

• $2,000 for other eligible households.

• Potential opportunities to combine funding with eligible provincial programs.

The federal government has indicated that an online application portal is expected in January 2027.

As of this article's publication date, the new program is announced but not yet accepting applications.

Homeowners considering a heat-pump installation should confirm the final program rules and timing before beginning work. Don't assume a future rebate will apply retroactively.

Read the federal announcement

Should You Refinance Your Mortgage to Renovate?

This is where a little planning can make a significant difference.

There are several ways to fund home improvements, and the best option depends on your current mortgage, available equity, interest rate, borrowing needs and future plans.

Option 1: Pay from savings. If you have sufficient savings and an adequate emergency fund, you may prefer to complete the work without borrowing. Any rebates you receive afterward could be saved, reinvested or applied toward your mortgage.

Option 2: Refinance your mortgage. If you have sufficient home equity and qualify for additional mortgage financing, refinancing may help cover larger renovations. Once eligible rebates arrive, you could potentially make a lump-sum payment against the mortgage balance.

Option 3: Use a home equity line of credit. A HELOC may provide flexible access to funds as renovation invoices come due. Depending on the product, you may be able to use received rebate funds to repay the HELOC balance directly.

Option 4: Investigate program financing first. Some municipal or utility-supported renovation financing may offer terms more favourable than conventional borrowing. It is worth comparing those options before refinancing.

Five Things to Check Before You Start

1. Confirm your eligibility before renovating. Some programs require an energy assessment, approved application or participating contractor before work begins.

2. Understand when you'll be paid. A rebate may take weeks after approval, while a tax credit may not be realized until your tax return is processed.

3. Confirm how incentives can be combined. Some programs permit stacking, while others limit or prohibit overlapping assistance for the same work.

4. Review your mortgage prepayment privileges. A lump-sum payment may be restricted by your mortgage agreement. Exceeding your allowable prepayment can trigger penalties.

5. Compare the true cost of borrowing. Refinancing can involve appraisal, legal, discharge and early mortgage termination costs. Stretching renovation debt over a long amortization can also increase interest costs.

A lump-sum payment generally reduces your principal and future interest costs, but it doesn't necessarily reduce your regular mortgage payment automatically.

The goal isn't simply to borrow money because a rebate exists. It's to understand whether the entire renovation and financing strategy makes financial sense.

Which Home Improvements Should You Prioritize?

Not every renovation qualifies for an incentive, and not every improvement delivers the same benefit.

If you're looking at renovating, consider improvements that address an immediate need, reduce future expenses, improve accessibility or support the long-term usefulness of your property.

Energy-efficient heating, insulation, windows and air sealing can improve comfort and potentially lower ongoing operating costs.

Accessibility improvements can help homeowners remain in their homes longer.

Secondary suites may create new living arrangements or potential rental income, subject to local requirements.

And essential structural, plumbing or safety repairs may protect the investment you've already made in your property.

A beautifully renovated kitchen is wonderful, but sometimes the most financially valuable improvements are the ones you don't immediately notice.

Let's Make Your Renovation Budget Work Smarter

Before you sign a renovation contract or decide how to pay for it, let's look at the whole picture.

As both a REALTOR® and a Mortgage Agent Level 2, I can help you explore how your proposed improvements fit into your property's value, your available financing options and your longer-term homeownership goals.

We can review your current mortgage, investigate suitable financing structures, consider anticipated rebate payments and plan around your mortgage's lump-sum prepayment privileges.

Whether you're upgrading the home you love, preparing for your next stage of life or thinking about an income-generating secondary suite, the goal is the same:

Make thoughtful improvements today without losing sight of your financial future.

Ready to explore your renovation financing options?

Send me a message with the improvements you're considering, your approximate budget and when you'd like to begin.

Let's explore what may be possible before you commit to the expense.

Charlotte Ferguson
REALTOR® | Mortgage Agent Level 2
Founder, Magnolia Group Realty
Home. Belonging. Together.

Email: charlotte@yourmagnoliagroup.com
Instagram: @mortgagesbyCharlotte

Disclaimer: Program information reflects published details reviewed as of October 13, 2026. Grant amounts, eligibility requirements, application windows and funding availability can change. All incentives are subject to their administrators' terms. Mortgage financing is subject to lender approval, qualification requirements, costs and contractual prepayment provisions. Tax credit eligibility should be confirmed with a qualified tax professional. This article is for general educational purposes and is not a guarantee of funding or financing.

Your lawyer protects the legal side of the purchase

A REALTOR® helps you find, evaluate and negotiate the property. A lender arranges financing. Your real estate lawyer completes the legal transfer and makes sure the registered ownership and mortgage match the transaction you agreed to complete.

Choose the lawyer early enough to ask questions before the closing rush. Your lawyer should receive the accepted agreement and all amendments as soon as possible.

Before closing

The lawyer reviews the agreement, searches title, checks registered interests and prepares the documents required to transfer ownership. They also receive mortgage instructions from the lender and identify the funds you must provide.

For a condominium purchase, the status certificate is usually reviewed during the conditional period by a lawyer. That review may identify issues involving the declaration, rules, budget, reserve fund, insurance, litigation or special assessments.

Title insurance and ownership

Title insurance may protect against certain title defects, fraud, survey issues and other covered risks. It does not replace a home inspection and does not cover every property problem. Your lawyer can explain the specific policy and exclusions.

You will also confirm how title will be held. Couples, family members and investment partners should understand the consequences of joint tenancy and tenancy in common before signing.

Money and adjustments

Your lawyer prepares a statement showing the purchase price, deposit credit, mortgage funds, land transfer tax, legal costs and adjustments. Adjustments may reimburse the seller for prepaid property taxes, condominium fees or other items assigned under the agreement.

The lawyer will tell you how much money to provide and the acceptable method and deadline. Confirm transfer instructions directly with the law office using a trusted phone number. Real estate transactions are frequent targets for wire fraud.

Signing and closing day

You will sign transfer, mortgage and other closing documents before the transaction closes. On closing day, the lawyers exchange funds and documents electronically and register the transfer and mortgage. Keys or access information are released after registration and confirmation of closing.

Closing is a process, not a scheduled 9 a.m. key pickup. Keep the day flexible and avoid booking movers so tightly that a routine registration delay creates chaos.

Questions to ask

Ask what the estimate includes, when funds are due, what identification is required, whether signing is remote or in person and how keys will be released. For a rural, estate, investment or condominium purchase, ask whether additional searches or reviews are recommended.

Your next step

Need a local real estate lawyer? Ask Charlotte for the current referral list, then choose the professional who is the right fit for your transaction.

The purchase price is not the whole budget

The listing price gets most of the attention, but the expenses around the purchase can decide whether closing day feels organized or alarming. Before you offer, build a cash plan that separates your down payment from the other costs of buying.

The exact amount depends on the price, property type, location and financing. Many buyers use 1.5 to 4 percent of the purchase price as an initial planning range for closing costs, excluding the down payment. Your lawyer and mortgage professional can narrow that estimate once the property and mortgage are known.

Deposit and down payment

The deposit is delivered after the offer is accepted, according to the agreement. It demonstrates the buyer's commitment and is credited toward the purchase on closing. The balance of the down payment is normally provided to the lawyer before closing.

Because deposits move quickly, keep the funds accessible and be ready to document where they came from. Large transfers or recent gifts may require supporting records for the lender.

Ontario land transfer tax

Ontario land transfer tax is calculated using graduated rates based on the purchase price. Eligible first-time buyers may qualify for a refund of up to $4,000. Your lawyer will calculate the tax and apply any eligible refund as part of the closing process.

A buyer who has previously owned a home, including a home outside Canada, may not qualify. Couples should get advice when only one person is a first-time buyer because the ownership history and spousal rules can affect the refund.

Legal fees title insurance and disbursements

Your lawyer reviews the agreement, searches title, arranges title insurance, prepares registration documents, coordinates funds and registers the transfer and mortgage. The final invoice normally includes professional fees, title insurance, registration charges and other disbursements.

Ask for an estimate early, then leave a buffer. The final amount can change with the property, lender instructions and closing adjustments.

Mortgage related costs

Some lenders require an appraisal. The lender may cover it, or the buyer may pay it. Buyers with less than 20 percent down will generally require mortgage default insurance. The premium is usually added to the mortgage, while applicable provincial tax on the premium is paid in cash at closing.

A mortgage pre-approval itself is commonly free. Be cautious about treating every possible lender or broker charge as a standard expense. Your disclosure documents should identify any fee that applies to your specific mortgage.

Inspection adjustments and moving expenses

A home inspection can reveal defects and future maintenance needs before conditions are waived. Specialized inspections for septic systems, wells, pools, fireplaces or sewers may be appropriate for certain properties.

Closing adjustments reimburse the seller for prepaid expenses that benefit the buyer after closing, such as property taxes or some condominium charges. Then there are practical expenses: movers, utility setup, new locks, insurance and the repairs or purchases that appear during the first few weeks.

A sample cash plan

For a $650,000 purchase, start by calculating the required down payment and deposit. Then add land transfer tax after any eligible refund, the lawyer's estimate, inspection costs, any appraisal, moving expenses and a contingency amount. Do not rely on one blanket percentage when an actual worksheet can give you a much clearer answer.

We can prepare a personalized estimate before you shop so you know how much must remain available after the down payment.

Your next step

Request a buyer closing-cost review with Charlotte Ferguson, REALTOR® and Mortgage Agent Level 2. Bring your target price and available savings, and we will map the numbers before an offer makes the timeline considerably less relaxed.

Visit mortgagewithchar.com to begin.

You've saved your down payment.

Excellent.

Now let's talk about the other money.

One of the biggest surprises for first-time buyers is discovering that buying a home comes with expenses beyond the down payment and monthly mortgage payment.

None of this means buying a home is a bad idea. It simply means your budget should include the whole purchase, not just the part that gets most of the attention.

Your Deposit and Down Payment Aren't Necessarily the Same Thing

This causes confusion for many first-time buyers.

The deposit is submitted in connection with your Agreement of Purchase and Sale and ultimately forms part of the money you contribute toward the purchase.

Your total down payment may be considerably larger.

Understanding when funds are required is important because real estate transactions involve actual deadlines, not "I'll transfer it sometime next week" deadlines.

Legal Fees

You'll need a real estate lawyer to complete your purchase.

Ask for an estimate ahead of time and find out what is included so you can incorporate the expected legal costs and disbursements into your budget.

Land Transfer Tax

Ontario buyers may have land transfer tax payable on their purchase.

Eligible first-time buyers may qualify for available rebates, but you should still understand how the calculation applies to your specific purchase rather than assuming there will be no cost.

Adjustments on Closing

Your lawyer may also calculate adjustments for expenses the seller has already paid.

For example, if property taxes have been paid beyond the closing date, your portion may be adjusted on closing.

Moving Costs

Even the DIY version of moving costs money.

Truck rental. Boxes. Packing materials. Pizza for everyone who was foolish enough to answer your text that morning.

If you're hiring professional movers, get quotes early.

Insurance

You'll need to arrange appropriate home insurance, and your lender will typically require confirmation of coverage before advancing mortgage funds.

Don't leave this until the night before closing.

Utility and Service Costs

Depending on the property, you may have costs associated with setting up or transferring utilities and services.

Once you own the home, you'll also need room in your monthly budget for electricity, gas, water, internet and other household expenses applicable to the property.

Immediate Home Expenses

Here's the sneaky category.

You move in and suddenly discover you need:

• curtains

• garbage cans

• a lawn mower

• a ladder

• shelving

• snow shovels

• basic tools

• approximately 47 other things nobody mentioned

You don't need to buy everything on Day One.

But having a small post-closing cushion makes those first few months much more comfortable.

Condo Buyers Have Another Number to Consider

If you're buying a condominium, monthly condominium fees become part of your ongoing housing costs.

You should also understand what those fees include, review the status certificate and consider how the condo's financial position may affect you as an owner.

The Goal Isn't to Scare You

It's actually the opposite.

Buying your first home feels much less intimidating when you know what to expect.

Before we start touring homes, I want my buyers to understand their realistic purchasing budget, expected closing costs and what homeownership may look like after they get the keys.

Because qualifying to buy a home and being comfortable owning that home are two different things.

And we're aiming for both.

Charlotte Ferguson, REALTOR®
Finding Home With Charlotte