Cheap Furnaces in Canada: 6 Smart Ways to Save

Square Footage	Furnace BTU
1,000-1,200 sq. ft. Home	40,000 - 60,000 BTU
1,200-1,500 sq. ft. Home	60,000 BTU
1,500-1,800 sq. ft. Home	60,000 - 80,000 BTU
1,800-2,500 sq. ft. Home	80,000 - 100,000 BTU
2,500-3,500 sq. ft. Home	100,000 to 120,000 BTU

Finding Cheap Furnaces in Canada that still offer dependable performance can be difficult, especially with rising equipment and installation costs. But with the right approach, homeowners can still secure an affordable, efficient heating system without compromising on long-term reliability.

If you’re upgrading your furnace, working with a trustworthy HVAC professional will always pay off. A qualified installer ensures your new system runs safely, efficiently, and comes with strong support throughout its lifespan.

Below is a practical guide—based on real HVAC experience—to help Canadian homeowners navigate the market and get the best possible deal on a new forced-air furnace.

1How to Navigate the Search for Affordable Heating

2The Challenge of Finding Affordable Furnaces

3Furnace Prices and What Affects the Cost

46 Tips to Get a Good Deal on a New Forced-Air Furnace

5Financing and Rebate Opportunities

6Conclusion: How to Find a Cheap Furnace That Still Performs Well

7📌 When Are You Planning to Install a New Furnace?

How to Navigate the Search for Affordable Heating

Canadian winters require reliable home heating, but not every homeowner has the budget for a top-tier system. Fortunately, you don’t need the most expensive furnace to stay warm: many affordable models offer excellent efficiency and comfort.

A good first step is gathering quotes from multiple reputable HVAC companies. While online price ranges for cheap furnaces can be useful for general guidance, an in-home assessment from a licensed contractor will give you accurate pricing and ensure the furnace is properly sized for your home.

Along with comparing quotes, there are other ways to reduce your upfront and long-term costs—such as taking advantage of rebates, avoiding peak-season installations, and choosing a furnace that lowers your energy bills over time.

If you’re looking for practical ways to save on a new heating system, the tips below will help you make a confident, informed decision.

The Challenge of Finding Affordable Furnaces

Tracking down a furnace that fits both your budget and your home’s needs can be tricky. The best place to start is with local HVAC professionals—just don’t hesitate to request estimates from more than one company.

Homeowners in urban centres often benefit from strong competition between contractors, which can drive prices down. In rural areas, however, fewer available installers can mean higher labour and travel costs.

Another challenge is that furnace pricing has increased in recent years. Today’s heating systems are far more advanced than older models, which means they cost more to manufacture. Improvements that contribute to higher pricing include:

Higher-quality internal components
Advanced materials designed for durability
Proprietary technologies
Significantly higher efficiency standards
Multi-stage or modulating gas valves
Variable-speed blower motors
More comprehensive warranty coverage

These upgrades result in better comfort, energy savings, and longevity—but they also mean that true “Cheap Furnaces” are becoming harder to find.

Furnace Prices and What Affects the Cost

A new furnace installation in Canada typically ranges from $4,000 to $6,500, though costs may fall outside this range depending on your situation. Price differences are influenced by:

Furnace brand, model, and efficiency rating
Type of system (single-stage, two-stage, or modulating)
Your location
Complexity of installation
Size and layout of your home
Smart thermostats or other add-ons
Special features and noise-reduction technology

The least expensive furnaces tend to be single-stage gas models around 96% AFUE with basic warranty terms and no premium comfort features.

6 Tips to Get a Good Deal on a New Forced-Air Furnace

1. Choose a High-Efficiency Furnace

While the goal may be to find Cheap Furnaces, it’s important not to sacrifice efficiency just to save money upfront. A furnace with an efficiency rating of 95% AFUE or higher is often the better long-term investment.

Older mid-efficiency models—often rated around 80%—waste far more energy than modern units. ENERGY STAR® furnaces, on the other hand, operate more efficiently and maintain more even temperatures throughout the home.

Although a high-efficiency model may cost slightly more initially, it can significantly reduce your heating bills over the furnace’s lifespan. Many also qualify for federal, provincial, or utility rebates, lowering the overall cost even further.

2. Natural Gas or Propane Often Offers the Best Value

Across Canada, natural gas and propane furnaces remain the most widely used and typically the cheapest to operate. Their fuel efficiency and broad availability make them an appealing option for cost-conscious homeowners.

Urban homeowners generally benefit most from natural gas, as it’s readily available and inexpensive.
Rural homeowners may rely more heavily on propane due to limited gas infrastructure.

In larger cities—especially markets like Toronto, Ottawa, and Hamilton—strong competition among HVAC installers can help you secure better pricing. Regardless of location, it’s always smart to compare at least three quotes before deciding.

A typical natural gas furnace installation starts around $4,000, though prices increase with higher efficiency or advanced features.

3. Consider Financing or Rent-to-Own Options

If paying for a new furnace upfront isn’t possible, financing can help spread the cost over time. Many HVAC companies partner with third-party lenders to offer monthly payment plans with various term lengths.

While financing doesn’t reduce the total cost—interest means you’ll pay more in the end—it does make the investment far more manageable for many households.

Rent-to-own programs function similarly. They generally offer:

No upfront payment
Full repair coverage
Predictable monthly costs
Flexible approval options

However, these programs can include long contracts or less favourable terms, so read the agreement closely before committing.

4. The Lowest Price Isn’t Always the Best Choice

A very inexpensive furnace—especially one priced below $3,000 installed—may seem appealing, but unusually low prices can be a warning sign.

Poorly installed furnaces are more likely to break down, operate inefficiently, or create noise and airflow issues. In the worst cases, improper installation can lead to safety risks.

Before agreeing to any quote, research the contractor, ask about certifications, and confirm warranty terms. A higher upfront cost is often worth it for proper installation and long-term reliability.

5. Brand Name Isn’t the Only Factor That Matters

Well-known furnace brands often invest heavily in marketing. While they offer solid products, they frequently come with higher price tags—even for their entry-level models.

More budget-friendly manufacturers produce reliable systems as well. The key is not to focus solely on the brand name, but rather on:

Warranty coverage
Availability of replacement parts
Efficiency options
Contractor expertise

When searching for cheap furnaces, it’s often more important to find the right installer and system configuration than to fixate on a particular brand.

Many reputable furnace brands offer dependable entry-level models that strike a good balance between performance and affordability. These aren’t packed with premium features, but they heat effectively, provide reliable comfort, and use well-supported components.

Homeowners can also explore budget-friendly models from several major manufacturers. Rather than choosing the “cheapest” possible furnace, look for:

A respected manufacturer
A strong installer warranty
High-efficiency ratings
Straightforward, non-proprietary components

Across most Canadian cities, the average cost of a new gas furnace installation remains between $4,000 and $6,500.

Financing and Rebate Opportunities

Furnace financing allows you to spread the cost of a new furnace over several years. While interest can increase the total amount paid, financing can make cheap furnaces more accessible by breaking the price into smaller, manageable monthly payments rather than a large upfront lump sum.

Financing also gives homeowners the flexibility to select a higher-efficiency model or better warranty package—choices that may not be affordable upfront.

Rebates can also help significantly. Depending on the program, incentives may be available through:

Federal or provincial government programs
Utility companies
HVAC manufacturers
Banks or financial institutions
Local contractors offering seasonal promotions

These programs change frequently, so ask contractors about current rebate opportunities when gathering quotes.

Conclusion: How to Find a Cheap Furnace That Still Performs Well

While it’s not always easy to fit a new furnace into your budget, choosing the absolute cheapest model or focusing solely on cheap furnaces is rarely the best long-term solution. You want a system that’s affordable to install, efficient to operate, and dependable in harsh Canadian weather.

By comparing quotes, exploring off-season installations, considering less expensive brands, and looking into financing or rebates, you can reduce your upfront costs without sacrificing reliability.

A high-efficiency furnace—paired with proper installation—will help keep energy bills manageable and ensure a warm, comfortable home for many years.

If you’re ready to explore your options, start by contacting trusted local contractors for personalized quotes and expert recommendations.

📌 When Are You Planning to Install a New Furnace?

Tell us your ideal installation timeline so we can match you with trusted local HVAC experts across Ontario:

🔥 Need a furnace installed urgently? (Next 2–3 days)
⏳ Planning your upgrade in the next few weeks?
🤔 Still comparing brands, prices, or contractor quotes?

👉 Request personalized quotes based on your timeline and Ontario location.

📍 Ontario Cities We Commonly Serve

FurnacePrices.com helps homeowners across Ontario compare furnace options, estimate installation costs, and find reliable, vetted HVAC contractors.

Frequently supported service areas include:

Our contractor network covers most major and mid-sized Ontario regions, providing expert support whether you’re replacing an older furnace or upgrading to a high-efficiency model.

👉 See the full list of Ontario service regions

🏆 Trusted by Recognized Canadian HVAC Associations

Many HVAC companies in our network are members of reputable national and provincial organizations, including:

These affiliations indicate strong training standards, code compliance, and reliable installation practices.

💰 Key Factors That Influence Furnace Installation Pricing

Furnace replacement costs in Ontario vary based on several important considerations:

Home size & heating load – Larger homes need higher-BTU furnaces
Installation complexity – Venting changes, gas-line upgrades, or electrical work can increase costs
Brand & efficiency rating – High-efficiency furnaces typically cost more upfront but save long-term
Your Ontario location – Labour rates differ between major cities and smaller communities
Repairs vs. full replacement – Full system replacements cost more than standalone component fixes

Understanding these elements helps you set a realistic budget for your installation.