Ontario retrofit funding news: what it means for renovation costs
A monthly industry update points to softer resale activity and new retrofit funding in the GGH. Here is what that means for your renovation budget.
The short answer: a softer resale market does not make renovation work cheaper by itself, and the retrofit funding mentioned in the update comes without details we can price in. The programs we can confirm are the ones already on our fact sheet.
What was reported
According to UrbanToronto, its latest monthly industry roundup covers weaker home sales, obstacles to building housing, and new renovation and professional development initiatives across the Greater Golden Horseshoe. It says findings from the Toronto Regional Real Estate Board (TRREB) and Canada Mortgage and Housing Corporation (CMHC) point to declining resale activity.
The headline also mentions stalled rental projects and announced retrofit funding. The part of the article available to us does not set out the retrofit program's size, eligibility or start date. We are not guessing at those, and we will update our guides once the details are published.
What it means for your project costs
Fewer resales do not automatically lower what a contractor charges. Labour hours, local trade rates and materials set the price. That is how we build every figure: hours multiplied by local rates, plus materials, checked against market prices and real quotes. A slower sales market can, however, change two things for homeowners:
- More owners stay put and renovate. That can keep demand for popular trades busy, so lead times matter more than discounts.
- Resale value matters more. If you plan to sell in a softer market, put your money into work buyers notice and inspectors check: roofs, windows, heating and water protection.
Heating and cooling: the clearest funding link
Retrofit funding usually points toward heat pumps, insulation and windows. Our current figures for a ducted heat pump are $9,350 – $15,600, with a typical mid-range job at $12,000. That is before GST/HST. Our full cost guide is here: Heat pump installation.
The system you choose changes the price. Here is how the options compare:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Ductless multi-zone (whole home) | $10,900 | $8,450 – $14,100 | – |
| Ducted air-source heat pump | $12,000 | $9,350 – $15,600 | – |
| Dual-fuel hybrid (keeps gas furnace) | $13,000 | $10,100 – $16,900 | – |
What we can confirm on funding comes from our fact sheet, not from the news report:
- Ontario Home Renovation Savings offers up to $7,500 for a cold-climate air-source heat pump in electric, oil, propane or wood-heated homes. Gas-heated Enbridge customers can get up to $2,000.
- Windows earn $100 per opening with a home energy assessment.
- Insulation can earn up to $7,700.
- Pre-approval and a participating contractor are required. Do not sign a contract or start work before you have both.
- The federal Greener Homes Grant and Loan are closed.
- The federal Oil to Heat Pump Affordability program closed on 31 July 2026 in Alberta, Manitoba, the Northwest Territories, Quebec and Saskatchewan.
Windows
If your quote includes windows, check how many openings it covers, because the Ontario rebate is paid per opening. Our figures for a typical job run $4,200 – $7,050, and a typical mid-range job is $5,400. Details are in our guide: Window replacement.
Protecting a basement
In Toronto, a separate city program helps with basement flooding protection. Since 1 May 2026 it pays up to $6,650 per property, with each item covered at up to 80% of the invoice. That includes up to $2,250 for a sump pump, $1,600 per backwater valve and $500 for a home plumbing assessment. Contractors need a valid City of Toronto business licence, and a backwater valve needs a building permit and inspection. For larger waterproofing work, see Basement waterproofing. Our typical figure is $10,500, before GST/HST.
How to protect your budget
- Wait for the rules. Until the new retrofit funding publishes its terms, plan around programs you can verify today.
- Confirm eligibility before you book. Programs with pre-approval do not pay for work that is already done.
- Use licensed trades. Electrical, gas and plumbing work needs licensed trades and usually a permit.
- Get at least three itemised quotes. Compare them line by line, then run the best one through our "is my quote fair" tool.
- Add GST/HST. Our figures exclude it, and Ontario's HST is 13%.
We will revisit these numbers when the retrofit program details are published.