What size furnace should I buy?

Square FootageFurnace BTU
1,000-1,200 sq. ft. Home40,000 - 60,000 BTU
1,200-1,500 sq. ft. Home60,000 BTU
1,500-1,800 sq. ft. Home60,000 - 80,000 BTU
1,800-2,500 sq. ft. Home80,000 - 100,000 BTU
2,500-3,500 sq. ft. Home100,000 to 120,000 BTU

Furnace Buying Guide in Canada: Types, Costs, Efficiency & Best Options

Choosing the right furnace is one of the most important decisions Canadian homeowners make. With long winters, fluctuating energy prices, and strict efficiency standards, a furnace isn’t just a heating appliance—it’s a long-term investment in comfort, safety, and operating costs. This Furnace Buying Guide in Canada helps homeowners understand what to consider before making that investment.

This Furnace Buying Guide in Canada is designed for homeowners in the research phase who want to understand how furnaces work, what types are available, how much they cost, and how to choose the best option before requesting quotes, repairs, or replacements.

A furnace is a central heating system that generates heat and distributes it throughout your home using ductwork and vents. Most furnaces heat air and circulate it via a blower motor, maintaining consistent indoor temperatures during cold months.

Modern furnaces are designed with safety controls, thermostatic regulation, and energy-efficient components that help reduce heat loss while improving comfort, airflow balance, and reliability during extended Canadian winters.

In Canada, furnaces are commonly fueled by:

  • Natural gas
  • Electricity
  • Oil

The right choice depends on climate, energy availability, home size, and long-term cost considerations.


Understanding furnace types is the first step in making a smart buying decision, especially in a country where winter temperatures vary significantly by region. Each furnace type differs in efficiency, operating cost, installation requirements, and long-term maintenance.

Gas furnaces are the most widely installed option across Canada due to their strong heating capacity and cost-effective operation. They deliver fast, consistent heat, making them ideal for long, harsh winters. 

High-efficiency gas furnaces use advanced heat exchangers and sealed combustion systems to reduce fuel waste and improve indoor air quality. While the initial cost is higher, long-term energy savings often offset the investment.

Pros

  • Lower monthly heating bills
  • High-efficiency models available (95%–99% AFUE)
  • Strong heating performance for cold climates

Cons

  • Higher upfront cost than electric
  • Requires gas line access

Best for: Cold regions, detached homes, long-term cost savings.

Electric Furnaces

Electric furnaces generate heat using electric resistance coils, making them simpler in design and easier to install. They work well in smaller spaces and regions with milder winters. 

However, electricity costs in Canada can make them more expensive to operate over time, particularly during prolonged cold periods.

Pros

  • Lower installation cost
  • No gas lines or exhaust venting
  • Quiet operation

Cons

  • Higher monthly operating costs
  • Less efficient for extreme cold

Best for: Small homes, condos, mild winter regions, or homes without gas access.

Oil Furnaces

Oil furnaces remain common in rural areas where natural gas is unavailable. They produce intense heat and perform reliably in extreme cold, but higher fuel prices and increased maintenance make them a declining choice for new installations.

Pros

  • Strong heat output
  • Reliable in very cold climates

Cons

  • Higher fuel costs
  • More maintenance required
  • Declining availability

Best for: Rural homes without natural gas infrastructure.

When comparing furnaces, efficiency matters more than brand names alone, especially for Canadian homeowners facing long heating seasons. AFUE (Annual Fuel Utilization Efficiency) measures how much fuel is converted into usable heat versus what’s lost through exhaust gases and system inefficiencies.

AFUE (Annual Fuel Utilization Efficiency) measures how much fuel is converted into usable heat.

  • 80% AFUE → 20% heat lost
  • 95% AFUE → Only 5% heat wasted

Canadian Efficiency Standards

  • Most provinces require minimum 95% AFUE for new gas furnace installations, ensuring modern systems meet energy and environmental expectations.
  • High-efficiency furnaces often include sealed combustion and secondary heat exchangers, which improve heat recovery and indoor comfort.

Bottom line: Higher AFUE = lower heating bills over time.

Understanding furnace pricing helps you budget realistically.

Furnace TypeAverage Installed Cost (CAD)
Gas Furnace (95–96% AFUE)$4,000 – $6,500
High-Efficiency Gas (97–99%)$5,500 – $8,500
Electric Furnace$2,500 – $4,500
Oil Furnace$5,000 – $7,500

Price depends on:

  • Furnace size (BTU output)
  • Efficiency level
  • Installation complexity
  • Ductwork or venting upgrades

Buying the wrong-sized furnace can increase energy bills and reduce comfort.

What Is BTU?

BTU (British Thermal Unit) measures how much heat a furnace produces.

General BTU Guidelines (Canada)

Home SizeRecommended BTU Range
1,000–1,500 sq ft45,000–60,000
1,500–2,500 sq ft60,000–80,000
2,500–3,500 sq ft80,000–100,000
3,500+ sq ft100,000–120,000

Important: Climate zone, insulation quality, and ceiling height affect sizing. A professional load calculation is essential.


FeatureSingle-StageTwo-StageModulating
Heat LevelsOneTwoVariable
ComfortBasicBetterBest
Energy EfficiencyLowMediumHigh
Price$$$$$$

Recommendation:

  • Two-stage or modulating furnaces are ideal for Canadian winters due to consistent comfort and energy savings.

Knowing when to repair or replace a furnace can save thousands in unnecessary costs and prevent unexpected breakdowns during winter.

Repair Your Furnace If:

  • It’s under 10 years old and has been well maintained
  • The repair cost is under 30% of the replacement cost
  • There are no major heat exchanger or safety issues

Minor repairs such as ignition problems, sensors, or blower components are often worth fixing and can extend the furnace’s lifespan.

Replace Your Furnace If:

  • It’s 15+ years old and nearing the end of its lifespan
  • You experience frequent breakdowns or service calls
  • Rising energy bills indicate declining efficiency
  • You notice uneven heating, excessive noise, or poor airflow

In these cases, replacement often provides better comfort, reliability, and long-term savings.


While brand choice matters, efficiency rating, sizing, and installation quality matter more.

Top features to prioritize:

  • 95%+ AFUE rating
  • Variable-speed blower motor
  • Quiet operation
  • Strong warranty coverage

High-efficiency furnaces may qualify for:

  • Federal energy rebates
  • Provincial energy programs
  • Utility incentives

Choosing an ENERGY STAR® rated furnace can significantly reduce upfront installation costs and long-term heating expenses. 

In many cases, combining rebates with improved efficiency results in faster payback periods, lower monthly energy bills, and a reduced environmental footprint—making high-efficiency upgrades both financially and environmentally smart.


✔ Correct furnace type for your fuel access
✔ Proper BTU sizing
✔ High AFUE efficiency
✔ Trusted installer
✔ Clear warranty terms
✔ Transparent pricing


A furnace is not a one-size-fits-all purchase. The best way to choose is to compare:

  • Prices by model
  • Efficiency ratings
  • Installation costs

👉 Get instant furnace price comparisons
👉 Request a free furnace quote
👉 Explore furnace reviews before buying


This Furnace Buying Guide in Canada gives you the knowledge needed to move confidently from research to purchase. By understanding furnace types, efficiency ratings, costs, and sizing, you can avoid common mistakes and invest in a system that delivers comfort, reliability, and long-term savings.

Before making a decision, always compare furnace prices, review models, and consult qualified professionals—your future heating bills will thank you.

At FurnacePrices.com, we bridge the gap between homeowners and reliable, vetted HVAC contractors—whether you’re installing a new furnace, upgrading your air conditioner, or replacing your full home comfort system.

📌 When Are You Planning to Install a New Furnace or Air Conditioner?

Tell us your installation timeline, and we’ll match you with the most suitable HVAC professionals in your area:

🔥 Need an urgent installation? (Next 2–3 days)
⏳ Planning your upgrade in the coming weeks?
🤔 Still comparing brands, prices, or contractor quotes?

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

📍 Ontario Cities We Commonly Serve

FurnacePrices.com helps homeowners across Ontario compare heating and cooling systems, estimate installation costs, and connect with trustworthy contractors.

Frequently supported service areas include:

Our network covers most major and mid-sized regions in Ontario, ensuring expert assistance whether you’re replacing an older furnace/AC or upgrading to a high-efficiency model.

👉 See the full list of Ontario service regions

🏆Trusted by Leading Canadian HVAC Associations

Many companies in our contractor network are active members of respected national and provincial HVAC organisations, such as:

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

💰 What Affects Furnace & AC Installation Pricing in Ontario?

Installation costs vary depending on:

Understanding these factors helps you plan your installation budget more accurately.

📞 Thinking About Installing a New Furnace or Air Conditioner?

Compare furnace or AC quotes from trusted, local HVAC professionals—quick, easy, and with zero pressure.

👉 Get fast, no-obligation heating & cooling quotes today

Hans Vaillancourt
Hans Vaillancourt
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