Paying for a heat pump over time: how Toronto's Home Energy Loan Program works
Toronto homeowners can borrow up to $125,000 for energy upgrades, including heat pumps, and repay it on their property tax bill. Here is what the City's official page says about rates, eligibility, steps and rebates.
A rebate lowers the cost of a heat pump, but you still pay for the install up front. If you own a home in Toronto, the City has a loan that lets you spread that cost over time. Here is what the City's official page says.
What HELP is
The Home Energy Loan Program (HELP) is run by the City of Toronto, and applications are open. Toronto homeowners can borrow up to $125,000 for home energy improvements. Air-source heat pumps and geothermal systems are on the list.
HELP is a loan, not a rebate. You pay it back.
Who can apply
The City lists these conditions:
- You own a detached, semi-detached, row house, duplex, triplex or other low-rise home, up to three storeys and six units, in Toronto. The postal code must start with "M".
- All owners on title agree to take part.
- In the last three years, a property tax or utility account was not 60 days past due more than three times.
- If you have a mortgage, your lender gives written consent.
Rates and repayment
These fixed rates are valid until December 31, 2026:
- 5 years: 3.83%
- 10 years: 4.43%
- 15 years: 4.85%
- 20 years: 5.12%, only for projects that include solar PV, geothermal, new windows or heat pumps
A 2% administrative charge is added. The total loan, with interest and that charge, cannot be more than 10% of your property's current value assessment or $125,000, whichever is less.
You repay through your property tax bill, in 11 monthly instalments a year, and you can pay it off at any time. These payments are treated like property tax, with the same penalties. The loan is attached to the home, not to you. If you sell before it is repaid, the new owner takes on the balance.
Steps for a heat pump-only project
For a heat pump-only project, HELP no longer asks for EnerGuide assessments before and after the work.
- Apply online. If approved, the City sends a funding offer. If you have a mortgage, your lender's consent comes first.
- Send a funding request with cost estimates from a contractor quote. Eligible costs are the heat pump and installation, electrical upgrades if needed, and building permits.
- Sign the Property Owner Agreement. On request, the City can advance up to 30% of the funds.
- After installation, your HVAC professional signs the HELP Installation Attestation Form and Project Completion Report, sent with the invoices. Once approved, the City pays the rest.
The City estimates 5 to 7 business days to review an application and up to 15 business days to prepare the agreement.
How it fits with rebates
The City says you may combine HELP with rebates from the City, the Province of Ontario, the Government of Canada and utility companies.
The Ontario rebate open now is Home Renovation Savings. It has its own rules. Pre-approval is mandatory, and installations done before approval are not eligible. It does not stack with other incentives from Enbridge Gas, Save on Energy or the Government of Ontario, and money from other sources cannot cover more than 100% of the heat pump cost. Its help page does not mention HELP.
The federal National Heat Pump Rebate is separate. Canada.ca says households above the median income may be eligible for $2,000, and those below it for up to $10,000. Installs from November 1, 2026 may qualify, and applications open online in early 2027. Funding is not guaranteed until an application is approved, and the details may still change.
For more on both rebates, see heat pump rebates in Ontario, explained.
If you want to know which rebates your home may get, you can use our free rebate check or ask for a free quote, with no obligation.
This post is based on this article.