Federal Budget 2026: What Changes for Households

What was announced. On October 8, 2026, the federal government announced help to replace your heating with an electric heat pump, according to the Government of Canada news release. It is a federal measure: it covers all of Canada, Quebec included. Its official name is the National Heat Pump Rebate. A household whose after-tax income is equal to or below the median can receive up to $10,000. Other eligible households can receive $2,000. The release says the rebate can be combined with existing provincial programs, without saying how, program by program. In Quebec, Hydro-Québec already offers its own refund: see our article on the LogisVert program.

When you can apply. Not yet. The program is set to open in early 2027 through an online portal and to run until March 2034, the program page says. No exact date has been set. The release promises that no energy audit will be required, before or after the work, and that an application can be approved within 24 hours. If you have an eligible heat pump installed from November 1, 2026, you may qualify for the rebate retroactively, as long as you apply once the portal opens. You must then submit your receipts within six months. No payment will be made before the launch and the approval of your application.

Who qualifies. You must live in Canada and own the home where the heat pump is installed. It does not have to be your main residence. The unit must be on the eligible product list and be bought from a heating, ventilation and air conditioning contractor, who installs it. Only one rebate is paid per household, and no federal funding can already have been received for a heat pump at that address. In Quebec, for the higher rebate, the household's after-tax income must not exceed $41,228 for one person, $82,097 for two and $107,865 for three. This income is calculated from your 2025 tax return: line 23600 minus line 43500, adding both spouses' amounts together.

A seller who solicits you is breaking the law. On November 2, 2026, the Office de la protection du consommateur issued a warning about prohibited solicitation (in French only). In Quebec, an itinerant merchant may not solicit you for a contract on a heating or air conditioning appliance: heat pump, air conditioner, furnace, geothermal system. The ban also covers related contracts, such as maintenance, warranty or credit. An itinerant merchant is someone who goes door to door or runs a temporary booth, but also someone who reaches you by phone or on social media to get a visit to your home. A call along the lines of “it’s about the new federal grant”, followed by an offer to come to your home, falls into this case. The federal program page confirms it: its department never goes door to door and makes no marketing calls.

Before you sign, and if you already have. According to the Office, it is up to you to check whether you qualify for a grant, not up to the seller to use it to convince you. Ask for the promised savings to be written into the contract, and be wary if the seller refuses. Insist on a clear contract and avoid paying a deposit. If a contract was signed despite the ban, you have one year after signing to cancel it, explains the Office's page on contracts prohibited in itinerant sales. There is one exception: you may invite a company yourself for an estimate, as long as it did not contact you first. To report a seller, use the Office's reporting form. If the person claims to represent the federal program, also alert the police.

Good to know for newcomers. The rebate is for homeowners: if you rent, it does not cover you for now. If you own, keep your installation receipts. They are needed for the rebate, and also for the good working order warranty: since October 5, 2026, a new heat pump sold or leased in Quebec is covered for six years from delivery. To spot other traps, see our guide to common scams in Quebec.

What's coming. Starting November 16, 2026, the federal government will accept applications for the Red Seal Completion Bonus. The amount: $5,000 for each certification earned in a designated Red Seal trade since April 1, 2025, up to a maximum of $50,000 per person. The Red Seal is a common standard that lets you work in a skilled trade in the participating provinces and territories.

Who qualifies. The eligibility page sets five conditions. Be a Canadian citizen, permanent resident or protected person. Not be a high school student. Have completed an apprenticeship program as a registered apprentice in a designated Red Seal trade, and be a certified journeyperson in that trade. Apply within the deadlines. Provide the supporting documents required for your province or territory: the federal government says those details will be published later.

The deadlines. If you were certified between April 1, 2025, and November 15, 2026, you have until May 31, 2027, to apply. If you are certified on or after November 16, 2026, you have 12 months from your certification date. Watch the second, shorter deadline: once you start an application, you have 28 calendar days to send your supporting documents, or you will need to start a new application, according to the same page.

What to gather now. The October 23 news release lists it: your Social Insurance Number (SIN), your mailing address, an email address (optional but recommended), your banking information for direct deposit, the name of your trade and your certification date, the province or territory where you were certified, and your apprentice identification number. Permanent residents whose SIN starts with 9, and protected persons, will also need to provide proof of their status in Canada.

What about Quebec? The federal pages don't name any province: they ask for proof issued by the province or territory where you were certified. In Quebec, according to Québec.ca, the certificate of qualification is issued by the Ministère de l'Emploi et de la Solidarité sociale or by the Commission de la construction du Québec (CCQ). Since the list of documents by province hasn't been published yet, check the program page again before you apply.

The old grants are over. Québec.ca also notes that the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant ended on March 31, 2025, and no longer accept applications. The new bonus covers certifications earned from the next day, April 1, 2025.

Quebec income tax. In August, Quebec's Ministry of Finance announced that this bonus will be included in your income for the year you receive it, with Quebec tax withheld when it is paid (Ministry of Finance release, in French). So the amount you receive will be less than $5,000, and you will need to report it. We covered this change in an earlier article.

Good to know for newcomers. The bonus isn't available to people who only hold a work or study permit: you must be a citizen, permanent resident or protected person. If you've become a permanent resident and your SIN still starts with 9, plan for the proof of status. Our guide to the Social Insurance Number also explains what a SIN starting with 9 means. To see which trades are short of workers in Quebec, see our guide to in-demand jobs.

What's changing. Employment Insurance (EI)'s temporary measures were due to end on October 10, 2026. The federal government extended them through regulations that came into force on October 11, 2026, and added a new one. EI is a federal program, so these rules apply everywhere in Canada, Quebec included. The Government of Canada sums them up on its page on EI temporary measures, updated October 6.

Still no waiting week. Normally the first week of unemployment is unpaid: it's the waiting period, a bit like an insurance deductible. It stays waived for all new claims that start between March 30, 2025, and October 9, 2027. So you get paid a week sooner.

Your severance still doesn't delay your benefits. Usually, money you receive when a job ends (vacation pay, pay in lieu of notice, severance pay, closure bonuses, sick leave credits) is spread over the following weeks, which pushes back your benefits. If your claim or that allocation starts between March 30, 2025, and October 9, 2027, these amounts are not deducted from your benefits.

New: only your last separation counts. Until now, if you had quit a job without just cause, or had been dismissed for misconduct during your qualifying period, the hours from that job weren't used to establish your claim. For a claim that starts between October 11, 2026, and October 9, 2027, only the reason for your most recent separation is examined. If you lost that last job through no fault of your own, for example in a layoff, all the insurable hours in your qualifying period count.

Up to 20 more weeks, but only until June 12, 2027. Long-tenured workers can receive 20 additional weeks of regular benefits, up to a maximum of 65 weeks, if their claim starts between June 15, 2025, and June 12, 2027, and they have already received at least one week of regular benefits. To be "long-tenured," you must have received fewer than 36 weeks of regular or fishing benefits in the three years before your claim, and have paid at least 30% of the maximum annual EI premiums in at least 7 of the previous 10 years. If you qualify, the weeks are added automatically.

Good to know for newcomers. The 7-out-of-10-years contribution test rules out of the 20 extra weeks anyone who has paid EI premiums for fewer than 7 years. The other three measures, though, apply to anyone eligible for EI, however long they've worked in Canada. The advice hasn't changed: apply as soon as you stop working. For the basic conditions (insurable hours, record of employment), see our guide to Employment Insurance.