Titus 3:7

That being justified by his grace, we should be made heirs according to the hope of eternal life.

Being made right with God by His unearned favor turns guilty sinners into heirs who look forward to everlasting life.
That rescue came not from any good deeds they had done but from God's kindness and mercy, through cleansing rebirth and the Holy Spirit poured out richly through Jesus Christ.
Justification is a free restoration to God's favor through Christ's righteousness and redeeming exchange, not earned by prayers, fasting, giving, self-denial or righteous acts.
This hope rests on God's mercy and Christ's righteousness rather than human merit, with obedience and a holy life following as its fruit.
Those forgiven are therefore to live changed lives, ready for every good work, gentle to all, and merciful to others as they were shown mercy.

Saving Mercy and Grace

Titus 3:7 looks back to what its readers once were, foolish, disobedient, deceived, serving divers lusts and pleasures, living in malice and envy, hateful and hating one another. Their rescue came when the kindness and love of God toward man appeared, saving them not by works of righteousness which they had done but according to His mercy. That mercy acted by the washing of regeneration and renewing of the Holy Ghost, shed on them abundantly through Jesus Christ the Saviour. The washing of regeneration is burial with Christ in baptism, representing repentance and purification from sin and the Holy Spirit's renewing work, so that baptism represents true conversion.

Being justified by His grace means being restored to favor with God freely and without stint. It is not earned by prayers, fasting, almsgiving, self-denial, or righteous deeds, but is received through the redemption that is in Christ Jesus. It rests on Christ's righteousness and on His saving exchange by which the guilty are set free, so that the glory of salvation belongs to God. Everything in this salvation is owed to free, sovereign grace. Grace in the covenant ordained adoption as sons of God, and grace in the Saviour effected redemption, regeneration, and adoption to heirship with Jesus Christ.

In giving Christ, God gave all the treasures of heaven, with limitless resources and every provision made so that believers need not falter, fail, or be discouraged.

Heirs Living in Hope

Being justified by grace makes sinners heirs according to the hope of eternal life, which is the privilege of being God's children and joint-heirs with Christ, with grace in Christ as the foundation of Christian hope. This follows the appearing of the kindness and love of God toward man, saving not by works of righteousness but according to mercy, by the washing of regeneration and renewing of the Holy Spirit poured out abundantly through Jesus Christ the Saviour. That washing is burial with Christ in baptism, representing repentance, purification from sin, and the Holy Spirit's renewing work, so that baptism represents true conversion. The inheritance rests on God's mercy and restored favor, not on human righteous works, and belongs with instruction about living obediently to God's Word.

That hope rests on God's mercy and Christ's righteousness, not human merit, and is received by grace, not earned by prayers, fasting, almsgiving, self-denial, or righteous deeds. Obedience and a holy life conformed to Christ are its fruit, not its price or basis, with the renewing work of the Holy Spirit reflected in a life conformed to Christ. Those who receive forgiveness on this basis must treat others with mercy and forgiveness.

On earth character is being formed for eternity in training for heaven. Justification by grace is free and without stint, through the redemption in Christ Jesus, and in giving Christ every provision and limitless resources were given so believers need not falter, fail, or be discouraged. Therefore they are to press forward to the mark of the prize of the high calling, sowing patience, compassion, and love to reap that harvest.

The verse belongs to instruction for obedient, changed living: being subject to principalities and powers, to authority and magistrates, obedient, ready for every good work and zealous for good works. It calls for speaking evil of no one, being gentle and showing all meekness to all men, putting away unrighteous conduct and practicing kindness, truth, and holiness. This remembers the former state of being foolish, disobedient, deceived, serving lusts and pleasures, living in malice and envy, hateful and hating one another. It avoids foolish questions, genealogies, contentions and strivings about the law, and calls for conversion in the hearts of leading men connected with God's work in every line so the Spirit of Christ comes in and no selfishness, envy, or jealousy is seen.

It is a faithful saying to be constantly affirmed as good and profitable so that those who have believed maintain good works. Christ teaches this lesson to those united with Him who come out of the world and enter His school to learn of Him, where they catch light for their spiritual interest. This affirming belongs together with the saving by mercy through regeneration and renewal shed abundantly through Jesus Christ unto heirship according to the hope of eternal life.

Those who receive forgiveness must treat others with mercy and forgiveness, revealing grace to others. This revealing is by sowing patience, compassion, and love, and by sharing the abundant assurance received from Christ to give consolation and precious gifts to others.

The privilege of being God's children and heirs of eternal life can be bartered away for worldly prosperity and gain. The hope of eternal life is the inheritance children are to be prepared for through patient, untiring effort. Parents are to sanctify themselves to God, consider their children's present and future good, and learn from God so they can teach their children rightly.