| 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 |
⚠️ Emergency Replacement? If your furnace failed unexpectedly, prioritize safety and heat restoration first—then use this guide to understand fair pricing and avoid rushed decisions.
Understanding furnace prices in Ontario is essential for homeowners planning a replacement or upgrade. Whether you’re dealing with an aging system or looking to improve energy efficiency, knowing the average furnace replacement cost in Ontario can help you make an informed decision.
In this guide, you’ll learn the real costs of furnace units across Ontario, what drives pricing differences, installation expenses, available rebates, and how to compare quotes from local contractors. By the end, you’ll have a clear picture of what your new furnace cost in Ontario with installation will actually be—and how to maximize value without overpaying.
New furnace costs in Ontario vary significantly based on fuel type, efficiency rating, and brand. Here’s a realistic breakdown of what homeowners in Toronto, Ottawa, Hamilton, and the GTA typically pay:
Gas furnaces remain the most popular choice in Ontario due to natural gas availability and operating cost efficiency.
High-efficiency furnace Ontario prices are higher upfront but deliver long-term savings on energy bills throughout the heating season.
Electric furnaces are less common in Ontario but may be ideal for homes without natural gas access or smaller spaces.
While installation is often simpler, electricity costs in Ontario make these units more expensive to operate annually compared to gas.
Oil furnaces are declining in popularity but still found in rural Ontario areas.
Fuel prices fluctuate with these systems, and they require regular maintenance plus scheduled deliveries, which adds to long-term costs.
| Fuel Type | Upfront Cost Range | Annual Operating Cost | Best For |
|---|---|---|---|
| Gas (High-Efficiency) | $4,500–$7,500 | $800–$1,200 | Most Ontario homes |
| Gas (Standard) | $2,500–$3,800 | $1,100–$1,500 | Budget-conscious buyers |
| Electric | $1,800–$5,000 | $1,400–$2,200 | No gas access areas |
| Oil | $3,200–$7,200 | $1,600–$2,400 | Rural properties |
Ontario Homeowner Tip: Natural gas furnaces offer the best value for most GTA and urban Ontario homeowners when factoring in both installation and 15-year operating costs.
The furnace unit itself is only part of the total furnace installation cost in Ontario. Labor, materials, and system modifications significantly impact your final bill.
Home Size: Larger homes require higher-capacity furnaces and more extensive ductwork, increasing both equipment and labor costs.
Existing Infrastructure: Older homes may need ductwork repairs, electrical upgrades, or venting changes to accommodate modern high-efficiency systems that meet Ontario building code requirements.
Fuel Type Conversion: Switching from oil to gas or electric to gas requires new gas lines, venting, and permits—adding $1,500–$3,500 to the project.
Brand & Warranty: Premium brands like Carrier, Lennox, and Trane often include extended warranties but come with higher upfront costs. Mid-tier brands like Goodman and Bryant offer solid performance at 15–20% lower prices with comparable reliability.
Seasonal Demand: Installation rates tend to rise during peak heating season (October–January). Scheduling off-season can sometimes reduce labor costs by 10–15%.
Contractor Licensing: Always verify your contractor is TSSA-certified (Technical Standards and Safety Authority) to ensure compliance with Ontario safety regulations and valid warranties.
Not sure what size furnace you need? Request quotes with professional heat load calculations to avoid costly oversizing mistakes.
Annual Fuel Utilization Efficiency (AFUE) measures how much fuel converts to usable heat. This single number dramatically affects both upfront costs and long-term savings. The EnerGuide rating system helps Canadian homeowners compare furnace efficiency across brands and models.
How AFUE Works:
Ontario Climate Consideration: With heating seasons running October through April, high-efficiency furnaces (95%+ AFUE) typically pay for themselves within 5–7 years through reduced natural gas consumption. According to Natural Resources Canada, upgrading from 80% to 95% AFUE can save Ontario homeowners $300–$500 annually.
Ontario homeowners can access multiple rebate programs to offset furnace replacement costs, making high-efficiency upgrades more affordable.
Enbridge Gas offers rebates for qualifying high-efficiency furnaces:
Eligibility: Must be an Enbridge customer installing ENERGY STAR® certified equipment through a registered contractor.
This federal program provides up to $5,000 for energy-efficient home upgrades, including furnaces.
How It Works: Complete an initial home energy evaluation through the Canada Greener Homes Initiative, install eligible upgrades, then submit a second evaluation to claim your rebate.
Some Ontario municipalities offer additional incentives for energy-efficient heating systems. Toronto, Ottawa, and Hamilton occasionally run seasonal programs. Check with your local utility provider or municipality for region-specific programs.
Smart homeowners stack multiple programs:
Several factors determine the final cost of your furnace replacement:
Gas furnaces typically offer the best balance of upfront cost and operating efficiency in Ontario. Electric furnaces have lower installation costs but higher monthly bills. Oil furnaces are costly to run and maintain.
Furnace capacity is measured in BTUs (British Thermal Units). Ontario homes typically need 40–60 BTUs per square foot, depending on insulation quality, window efficiency, and layout. A 2,000 sq ft home in the GTA generally requires a 60,000–80,000 BTU furnace.
Proper sizing requires a Manual J heat load calculation performed by TSSA-certified contractors—not guesswork based on your old furnace.
Premium Tier (Carrier, Lennox, Trane):
Mid-Tier (Bryant, American Standard, Goodman):
Budget Tier (Comfort-Aire, Aire-Flo):
Note: Brand performance varies significantly based on installation quality and ongoing maintenance. Even premium brands underperform when improperly installed.
Modulating furnaces provide superior temperature control and operate 30–40% more quietly than single-stage units.
Contractors sometimes oversize furnaces, assuming “bigger is better.” Oversized units cycle on and off frequently, wasting energy and shortening lifespan by 3–5 years. Always request a Manual J heat load calculation before installation.
Avoid This Common Installer Upsell: If a contractor recommends a furnace size without measuring your home, calculating heat loss, or reviewing insulation—get a second opinion.
Failing to research available rebates can cost you $1,000–$2,500. Apply for incentives before installation begins—most programs require pre-approval or enrollment.
Accepting the first quote without comparing at least three licensed TSSA-certified contractors often results in overpaying by 15–25%. Verify contractor credentials, online reviews, and warranty terms.
The cheapest furnace rarely delivers the best value. A $3,000 furnace with $1,800 annual heating bills costs more over 10 years than a $5,500 high-efficiency model with $1,100 annual bills.
Quality furnace quotes in Ontario should detail:
If a quote lacks these details, it’s incomplete.
Furnace prices in Ontario typically range from $2,500 to $7,500+ for the unit alone. Including installation, most homeowners pay between $4,000 and $10,000 total, depending on fuel type, efficiency, and home size. Toronto and GTA installations may run 5–10% higher due to labor rates and permitting costs.
Ontario homeowners can access Enbridge Gas rebates (up to $250), the Canada Greener Homes Grant (up to $1,250), and potential municipal incentives. Combining programs can save $1,000–$2,500 on high-efficiency installations when coordinated properly.
Yes. Ontario’s long, cold winters mean high-efficiency furnaces (95%+ AFUE) pay for themselves through reduced energy bills within 5–8 years. They also qualify for better rebates, reduce environmental impact, and improve home resale value in competitive markets like Toronto and Ottawa.
Most furnaces last 15–20 years with proper maintenance. High-efficiency models may last slightly longer due to advanced technology and better build quality. Annual tune-ups extend lifespan and maintain warranty coverage. Neglecting maintenance can reduce lifespan to 12–15 years.
No. Ontario law requires TSSA-licensed HVAC contractors to install furnaces. DIY installations void all manufacturer warranties, violate building codes, fail inspections, and create serious safety risks including carbon monoxide leaks and fire hazards. Unlicensed installations may also complicate home insurance claims.
Higher labor costs and stricter permit requirements often add $300–$800 to installation. Older homes in established neighborhoods (The Beaches, High Park, Leslieville) may require additional ductwork modifications.
Colder climate than southern Ontario means sizing calculations require 10–15% higher capacity. Rural Ottawa properties may face premium charges for service calls.
Mix of older and newer housing stock. Homes built pre-1980 often need extensive duct sealing and insulation upgrades before high-efficiency furnace installation delivers optimal performance.
London, Kingston, Kitchener-Waterloo typically see pricing 5–10% below GTA rates, though contractor availability may be more limited during peak season.
Navigating furnace prices in Ontario doesn’t have to be overwhelming. By understanding the cost factors—fuel type, efficiency, installation complexity, and available rebates—you can confidently plan your replacement budget. Remember that the cheapest option isn’t always the best value. Investing in a properly-sized, high-efficiency furnace installed by TSSA-certified professionals will deliver comfort, savings, and reliability for 15–20 years.
Ready to get started? Compare local contractor quotes to find the best furnace prices in Ontario for your home. Pricing reflects real quotes from licensed Ontario contractors across the GTA and major cities. Request detailed estimates that include equipment specifications, installation costs, rebate eligibility, and heat load calculations—and choose a contractor who prioritizes your long-term comfort and savings, not just a quick sale.
If you’re planning ahead:
If your furnace failed unexpectedly: First, ensure your family is safe and has temporary heat. Once stabilized, use this guide to evaluate emergency quotes fairly—even urgent replacements deserve fair pricing and proper sizing.
Your comfort during Ontario winters is too important to leave to guesswork. Make an informed decision with real data, professional guidance, and fair pricing.
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