Renovation Rebates & Incentives in Toronto — 2026 Guide

Federal Programs

Canada Greener Homes Affordability Program (CGHAP)

Targeted at low-to-median-income households, CGHAP covers the full upfront cost of qualifying retrofits like cold-climate heat pumps and advanced insulation. Unlike the previous grant program, CGHAP is a direct-install model — there are no out-of-pocket costs or reimbursement waits for eligible participants. Check eligibility at Natural Resources Canada.

Multigenerational Home Renovation Tax Credit (MHRTC)

If you are building a self-contained secondary suite (with its own kitchen, bathroom, and private entrance) for a senior aged 65+ or an adult eligible for the Disability Tax Credit, you can claim 15% of up to $50,000 in qualifying construction costs. This is a refundable tax credit worth up to $7,500 on your annual return. Details are available from the Canada Revenue Agency.

GST Removal for First-Time Buyers (Bill C-4)

While primarily relevant to new home purchases, Bill C-4 (Making Life More Affordable for Canadians Act, Royal Assent March 2026) eliminates GST on newly built homes up to $1 million for first-time buyers, with sliding relief up to $1.5 million.

Ontario Programs: Home Renovation Savings Program

Ontario's primary rebate program is the Home Renovation Savings Program, delivered through Enbridge Gas and Save on Energy. It offers two pathways:

Comprehensive Retrofits (requires a home energy assessment)

You must complete at least two bundled upgrades to qualify. A pre- and post-renovation EnerGuide audit is required (subsidized by a $600 rebate).

Single / Targeted Upgrades (no energy assessment required)

For current details and to apply, visit saveonenergy.ca.

City of Toronto Programs

Basement Flooding Protection Subsidy Program (BFPSP)

Toronto City Council enhanced this program effective May 2026. The maximum lifetime subsidy per property nearly doubled — from $3,400 to $6,650. The program reimburses 80% of invoiced costs for backwater valves (preventing sewer backup), sump pumps, and a new $300 subsidy specifically for sump pump battery backup systems.

Apply through the City of Toronto water services page.

Home Energy Loan Program (HELP)

For homeowners who prefer not to draw on private home equity, the City's HELP program provides low-interest loans up to $125,000 for energy retrofits including geothermal systems, window replacements, and envelope air sealing. The loan is repaid through your property tax bill and can be assumed by a new owner if you sell.

Learn more at toronto.ca/home-energy-loan.

Other Relevant Programs

• Eco Roof Incentive Program: Grants for green or cool roofs on residential properties. Details at toronto.ca/eco-roof.
• Energy Affordability Program: Free upgrades for income-eligible homeowners — attic and basement insulation, draft-proofing, smart thermostats, and cold-climate heat pumps. Apply through Save on Energy.

Claiming Rebates During Your Addition

The best time to capture rebates is during construction, when your walls and mechanical systems are already open. During material selection, our team flags every eligible upgrade and handles rebate paperwork so you receive every dollar you qualify for. Learn more about our home additions services.