Toronto Home Energy Loan Program (HELP) for HVAC

In short

Toronto does not offer a furnace rebate. Its Home Energy Loan Program lends homeowners the cost of listed upgrades, including high-efficiency furnaces, boilers, air conditioners and heat pumps, and collects repayment through the property tax bill in 11 instalments a year. Terms are 5, 10 or 15 years, or 20 when the project includes a heat pump. The loan stays with the property if you sell.

How much you can get

City of Toronto rebate for a gas furnace None
Maximum HELP loan 10% of current value assessment or the City's dollar cap, whichever is less — see the program page
Fixed interest rate 3.34% (5 years) to 4.75% (20 years) on the table dated to September 30, 2026 — confirm the current table
Administrative charge added to the loan 2%
Term for a furnace, boiler or air conditioner project 5, 10 or 15 years
Term when the project includes a heat pump, solar, geothermal or windows Up to 20 years
Advance once the Property Owner Agreement is approved Up to 30% of the funds, on request
Provincial heat pump rebate that can be combined with it (gas-heated home) $500 per ton, up to $2,000

Who qualifies

The property is in Toronto, with a postal code beginning with M, which takes in Etobicoke and excludes Mississauga.
It is a detached, semi-detached or row house, a duplex or triplex, or another low-rise residential building of at most three storeys and six units.
Every owner on title consents to the loan.
The property tax and utility accounts have no more than three instances of being 60 days past due in the last three years.
Your mortgage lender gives written consent on the City's form; the City will not issue a funding offer on a mortgaged home without it.
Projects other than heat pump-only or solar-only need an EnerGuide home energy assessment before and after the work.

Searches for a Toronto furnace rebate end here because this is the City's only residential HVAC funding, and it is financing. Whether it suits you comes down to how fast you need the equipment and what other credit you can get.

Is there a furnace rebate in Toronto?

No. The City of Toronto does not pay a rebate on a gas furnace, and the provincial Home Renovation Savings Program has no furnace measure either. What the City offers is a loan that can cover a high-efficiency furnace, boiler or air conditioner, which appear together on the HELP list of eligible improvements. The reasons furnaces dropped off rebate lists are on our furnace rebates page.

How the HELP loan works, and why it is tied to the house

The City lends the money and adds the repayment to your property tax account. You are enrolled in the pre-authorized tax payment plan and pay in 11 monthly instalments per year. The City's page says those payments carry the same penalties, remedies and lien priority as property tax itself, which is why the mortgage lender has to consent.

Because the charge sits on the property and not on you, a buyer takes over the remaining balance if you sell. You can also clear the balance at any time during the term. Raise the loan with your real estate lawyer before listing, since a buyer may ask for it to be paid out on closing.

Rates, terms and the loan ceiling

Terms: 5, 10 or 15 years for any project, and 20 years only when the project includes solar, geothermal, windows or a heat pump.
Rates are fixed for the term. The City's table when we checked was dated valid until September 30, 2026 and ran from 3.34% for 5 years to 4.75% for 20 years, so look for the refreshed table.
A 2% administrative charge is added to the loan.
Ceiling: funding, interest and the administrative charge together cannot exceed 10 percent of the property's current value assessment or the City's dollar cap, whichever is less.
Up to 30 percent of the funds can be advanced after the Property Owner Agreement is approved; the rest is paid when the completion report is accepted.

A furnace-only project therefore tops out at a 15-year term. Adding a heat pump to the same project opens the 20-year term and lowers the monthly amount, at the price of more interest overall.

What HVAC work qualifies, and what it costs

The City's list includes air-source heat pumps, geothermal systems, high-efficiency furnaces, boilers and air conditioners, high-efficiency and tankless water heaters, and drain-water heat recovery, along with insulation, air sealing, windows and doors. Our installed price bands for the common jobs:

High-efficiency furnace: $4,500–$7,500.
Furnace and air conditioner together: $7,500–$11,500.
3-ton cold-climate heat pump: $9,500–$15,000 before the provincial rebate.
Tankless water heater conversion: $3,500–$6,500.

The heat pump-only route is shorter

The City no longer requires an EnerGuide assessment for a project that is only a heat pump. Eligible costs on that route are limited to the heat pump and its installation, electrical upgrades if required, and building permits. At completion, the installing HVAC professional signs the HELP Installation Attestation Form and the Project Completion Report, and you submit them with the invoices.

A furnace, boiler or air conditioner project takes the full route. That means an assessment by a registered energy advisor before the work, quotes, a funding request, the Property Owner Agreement, the install, and a second assessment afterward.

HELP is too slow for a furnace that failed last night

The City sequences the application, the lender consent, the funding offer and the Property Owner Agreement ahead of the work. Its published lead times include 5 to 7 business days for application review, the same again for the funding offer after lender consent, and up to 15 business days to prepare the agreement. In January, that is weeks without heat.

For a no-heat call, get the furnace repaired or replaced first; most furnace repairs run $150–$800. Contractor financing can be arranged on the day and has no prepayment penalty. HELP suits the planned project: the 18-year-old furnace you know is coming due, or the heat pump you have been considering.

Combining HELP with the provincial rebate

The City states that HELP can be combined with rebates from the Province, the federal government and utilities, and your funding request lists the rebates you expect. Toronto is Enbridge territory, so a gas-heated house adding a heat pump is in the $500 per ton tier of the Home Renovation Savings Program, to a maximum of $2,000. That rebate has its own pre-approval, separate from the City's.

We serve Etobicoke and the west side of Toronto from our Burlington shop. When you call, we give you an itemized written quote to attach to the City's funding request, and we sign the attestation form on heat pump projects we install. See HVAC service in Toronto, browse the rebates hub, or request a written quote.

How ZK Mechanical helps

Give you an itemized written quote you can attach to the City's funding request.
Tell you whether your project fits the heat pump-only route or needs the two EnerGuide assessments.
Complete and sign the HELP Installation Attestation Form and the contractor section of the completion report for heat pump installs.
File the separate provincial heat pump pre-approval so the rebate and the loan are both in place before the install.
Offer same-day repair or contractor financing when the timeline of a City loan does not match a failed furnace.

Frequently asked questions

Does the HELP loan affect my mortgage?

It requires your lender's written consent, and the City will not send a funding offer without it. The City provides a customized Lender Consent Form for you to pass along. Repayments are collected with property tax and carry the same lien priority, which is the reason lenders are asked. Start that conversation early, because it is the step outside the City's control.

What happens to the HELP loan if I sell my house?

The loan is attached to the property, so the buyer assumes the remaining balance and the payments continue on the tax bill. You may instead pay the balance off at any time, and some buyers will make that a condition of the sale. Disclose it when listing so it does not surface late in the deal.

Do I qualify for HELP if I live in Etobicoke or Mississauga?

Etobicoke yes, Mississauga no. The test on the City's page is a Toronto property with a postal code that starts with M, and Etobicoke is part of the City of Toronto. Mississauga addresses begin with L and sit outside the City of Toronto, so HELP does not apply there, and a Mississauga homeowner is left with the provincial rebate plus ordinary financing.

Can a landlord use HELP for a duplex or triplex?

The eligible building list includes duplexes, triplexes and other low-rise residential buildings up to three storeys and six units, so small rental properties fit. The applicant is the owner, every owner on title must consent, and the tax and utility accounts must meet the payment-history test. Larger apartment buildings are directed to the City's separate financing programs.

Is the HELP interest rate better than contractor financing?

Compare the full cost, not just the rate. HELP rates are fixed for the term and a 2% administrative charge is added to the loan. Contractor financing can be set up the same day and repaid early without penalty, which matters for an urgent replacement. For a planned heat pump, the 20-year term HELP allows spreads the cost further than most contractor plans, at the price of more total interest.

Official sources

All Ontario HVAC rebates Furnace rebates in Ontario Heat pump rebates in Ontario HVAC service in Toronto All rebate programs