11 min read
How much does a new furnace cost in Ontario?
What a new furnace costs installed in Ontario in 2026: gas, electric, propane and oil, brands and warranties, efficiency rules, sizing, renting vs buying, rebates, upkeep, and Ontario's rules on door-to-door sales.
UbaFounder, Zulma
Replacing a gas furnace in Ontario usually costs $4,900 to $8,000 installed, before HST. A premium high-efficiency model can reach $8,000 to $10,000 or more, and an electric furnace starts lower, at about $4,000. For a typical 1,500 to 2,200 square foot home, most people budget $5,000 to $7,000. These figures come from five Ontario price guides and Natural Resources Canada, which we checked on 20 October 2026.
Key points
- Most Ontario homes heat with a natural gas furnace, the cheapest kind to run.
- New gas furnaces made for most homes must now be at least 95% efficient (Natural Resources Canada).
- A furnace should be sized by a heat-loss calculation, not by square footage alone.
- A furnace usually lasts about 15 years.
- Furnaces get no rebate under Ontario's Home Renovation Savings Program; heat pumps do.
- In Ontario, a furnace can't be sold or rented to you at your door unless you invited the company first.
Prices at a glance
| Kind of furnace | Typical installed price (before HST) |
|---|---|
| Natural gas | $5,000 to $8,000 or more |
| Propane | $5,000 to $8,000 or more |
| Electric | $4,000 to $7,000 or more |
| Oil | from $4,000 |
| Most gas replacements in the GTA | $4,900 to $8,000 |
| Premium high-efficiency gas, 96% to 98% | $8,000 to $10,000 or more |
Prices include standard installation, at least a one-year warranty and licences. Taxes, a new thermostat and some fees may be extra.
iSources: Enercare's 2026 furnace buyer's guide (by fuel) and Enbridge Sustain (GTA, September 2026).
The types of furnace
| Type | Installed price | Running cost | Best for |
|---|---|---|---|
| Natural gas | $5,000 to $8,000+ | Lowest | Homes with a gas line, which is most Ontario homes |
| Propane | $5,000 to $8,000+ | Low | Rural homes without natural gas |
| Electric | $4,000 to $7,000+ | 2 to 3 times gas | Small homes, homes without gas or oil |
| Oil | from $4,000 | High, and moves with oil prices | Older rural homes, many now switching |
Electric heating can cost 2 to 3 times more than natural gas at Ontario rates.
iSources: Enercare (prices, running cost order) and Dynamic Heat & Cool (electric vs gas).
Natural gas
The most common furnace in Ontario, because gas is widely available and is the cheapest fuel to heat with. A gas burner heats a heat exchanger, and a blower pushes air over it and through your ducts. The exhaust goes outside through a vent pipe.
Propane
Works like a gas furnace but runs on propane from a tank on the property. Common in rural homes that aren't on the gas network.
Electric
Cheaper to buy and needs no venting or fuel line, but costs the most to run. Dynamic Heat & Cool suggests it mainly for homes without gas and smaller homes.
Oil
Mostly found in older rural homes. Running costs follow oil prices, and many rural owners are switching to propane or electric.
Heat pump (the alternative)
A heat pump moves heat instead of burning fuel, and it also cools in summer. It costs more up front and is more efficient, and it qualifies for rebates. In Ontario's coldest weather, many homes pair a heat pump with a furnace as backup, which is called hybrid heating (Enercare).
Efficiency: what the AFUE number means
AFUE is the share of the fuel a furnace turns into heat. A 96% furnace turns 96% of its gas into heat; the rest goes up the vent.
- The rule: gas furnaces made on or after 3 July 2019 for most homes must have an AFUE of at least 95% (Natural Resources Canada). Lower minimums (80%) apply only to a few special categories listed in the rules, such as certain replacement non-condensing furnaces and furnaces for relocatable buildings.
- Premium models reach 96% to 98%, and a few 99% (Enercare).
- Efficiency drops over time if filters are dirty and parts aren't maintained, so yearly upkeep keeps it near its rating.
Blower and staging
Furnaces differ in how they heat and move air:
- Single-stage: the burner and fan are fully on or off. Found in older furnaces, and noisier (Enercare).
- Two-stage (multi-stage): a low and a high setting, so the house stays more even.
- Variable or modulating: adjusts in small steps, like a car's gas pedal, for the most even heat and quietest running.
In Home Depot's Ontario prices, the same Trane furnace costs about $500 to $600 more with a variable-speed blower than with a constant-torque one.
Brands and what they cost
By model (Home Depot, Ontario installed prices)
| Furnace | Efficiency and features | Ontario installed price (before tax) |
|---|---|---|
| Trane S9V2 | 96% AFUE, variable-speed blower, two-stage | $6,500 to $8,000 |
| Trane S9X2 | 96% AFUE, constant-torque blower, two-stage | $5,900 to $7,500 |
| Comfortmaker G9MVE | 96.5% AFUE, variable-speed blower, two-stage | $5,500 to $8,000 |
| RunTru A952 | 95% AFUE, variable-speed blower, two-stage | $4,900 to $7,900 |
These are for a 1,500 square foot home and include the furnace, standard installation, removal of the old unit and a standard warranty; disposal fees are extra.
By brand tier (Dynamic Heat & Cool)
| Tier | Brands named | Installed price | Typical warranty |
|---|---|---|---|
| Premium | Carrier, Lennox, Trane | $5,000 to $7,500 | 10 years or more |
| Mid-range | York, Goodman, American Standard | $4,000 to $6,000 | 5 to 10 years |
| Budget | Private-label brands | $3,500 to $5,000 | 2 to 5 years |
Correct sizing and installation matter as much as the brand. Compare warranties in writing: the parts warranty, the heat exchanger warranty and the installer's labour warranty are separate.
What size furnace do you need?
Square footage alone is an outdated way to size a furnace (Enercare). A licensed technician should do a heat-loss calculation that looks at your insulation, windows and doors, air leaks, ceiling height, layout and ducts. A furnace that is too small won't keep up; one that is too big turns on and off too often (short-cycling), wastes energy and wears out sooner.
As a rough budget only, Custom Contracting puts a typical 1,500 to 2,200 square foot home at $5,000 to $7,000 installed.
Where you live changes the price
Dynamic Heat & Cool's regional estimates (2025):
| Area | Installed price |
|---|---|
| GTA (Toronto, Mississauga, Brampton) | $4,000 to $6,500 |
| Hamilton, Burlington, Ancaster | $4,200 to $6,800 |
| Rural Southwestern Ontario | $5,200 to $8,500 |
| Northern Ontario | $6,000 to $10,000 or more |
Homes an hour or more from the nearest city can pay 20% to 40% more, because of travel and fewer contractors.
What a quote should include
Ask for every one of these in writing:
- The brand, model and capacity of the furnace
- Its AFUE rating, and whether it is single-stage, two-stage or modulating
- Labour, materials and any permits
- Removal and disposal of the old furnace
- The manufacturer's warranty and the installer's labour warranty
- HST (13%), and anything not included
Get two or three quotes and compare them line by line (list based on Enbridge Sustain's guide).
Costs that often surprise people, from Dynamic Heat & Cool: permits ($100 to $300), removing the old furnace ($60 to $500), ductwork changes ($200 to $1,000), electrical work ($150 to $800), and 20% to 50% more for an emergency replacement.
Warning signs in a quote: a price far below the others, pressure at the door, no visit to your home before quoting, no written warranty, or a contractor without TSSA certification for gas work (Dynamic Heat & Cool).
Buying, renting or financing
| Option | What it costs | Notes |
|---|---|---|
| Buy outright | $4,900 to $8,000 for most gas furnaces | You own it and pay for repairs after the warranty |
| Finance | Example: $5,500 over 5 years at 6.9% is about $108 a month, $6,480 in total | You own it once paid off |
| Rent | About $65 to $95 a month; $7,800 to $11,400 over 10 years | Repairs and maintenance usually included; you never own it |
| Lease-to-own | Often 192 months (16 years) | Can cost 40% to 60% more than buying outright |
iSource: Dynamic Heat & Cool's examples.
Read any rental or lease contract for its length, buyout price and what happens when you sell.
Your rights in Ontario
- No door-to-door sales. Ontario's consumer protection law bars businesses from selling or renting furnaces, air conditioners, water heaters and similar products at your door unless you contacted them first and invited them. A contract signed after that kind of door-to-door marketing is void, and you can keep the equipment with no obligation.
- No new liens. Ontario's Homeowner Protection Act, which became law on 6 June 2024, bans registering Notices of Security Interest (liens on your home's title) for consumer goods such as furnaces. It doesn't cancel older contracts.
- Before you sign any rental or financing deal, ask whether the company will register anything against your home, and get independent legal advice before signing a mortgage to pay one off.
iSource: Government of Ontario, "Door-to-door sales and home service contracts" (updated 19 June 2026).
Rebates
- Furnaces: no rebate under the Home Renovation Savings Program. A gas furnace can stay as backup heat next to a heat pump, but only the heat pump gets the rebate.
- Heat pumps: the rebate depends on what heats your home now:
| Heat pump | Home heated with electricity, oil, propane or wood | Enbridge natural gas customer |
|---|---|---|
| Cold-climate air-source | $1,250 per ton, up to $7,500 | $500 per ton, up to $2,000 |
| Ground-source | $2,000 per ton, up to $12,000 | $3,000 |
- Pre-approval is required. Work done before approval doesn't qualify.
iSource: Home Renovation Savings Program (homerenovationsavings.ca), checked 20 October 2026. Rebates change, so check before you buy.
How long the job takes
A standard furnace replacement takes 4 to 8 hours, usually one day. A furnace and air conditioner together take 1 to 2 days (Custom Contracting). Jobs with new ductwork can take several days (Enercare).
Looking after your furnace
- Have it serviced every 1 to 2 years by a licensed technician (Enercare). Late summer, before the heating season, is a good time.
- Check the filter monthly and change it when it's dirty. A clogged filter is the most common reason a furnace shuts off or runs noisily (Enercare).
- Keep vents and returns clear of furniture. Closed or blocked vents can make the furnace overheat and shut itself off.
Signs it's time to replace your furnace
From Enercare's guide:
- It is 15 years old or more (the average furnace lasts about 15 years)
- It needs frequent repairs
- Your heating bills rise sharply even with the thermostat set low
- It makes loud or unusual noises
- Some rooms are much warmer or colder than others
What a red tag means
If a gas technician finds a hazard, they put a warning tag on the furnace. A Type A red tag means an immediate danger, and the gas is shut off. A Type B red tag means a problem that must be repaired or the furnace replaced within 30 days. Either way, the furnace isn't safe to run until it's fixed (Enercare).
If you smell gas or hear a loud bang, don't touch light switches or electrical devices. Leave the home and call your gas company from outside.
Questions people ask
Is it worth replacing a 30-year-old furnace? Usually, yes. The average furnace lasts about 15 years, so a 30-year-old one is well past it. It was also built before the current rule that new gas furnaces be at least 95% efficient, so it likely costs more to run and more to repair.
How much is a furnace for a 2,000 sq ft house? About $5,000 to $7,000 installed for a typical 1,500 to 2,200 square foot home, before HST. The right size depends on a heat-loss calculation, not only square footage.
What is the best time of year to buy a furnace? Spring or early fall. Dynamic Heat & Cool puts spring prices 10% to 15% lower, with the best contractor availability, and an emergency replacement in winter can cost 20% to 50% more.
What is the average lifespan of a furnace? About 15 years (Enercare). Estimates from Ontario HVAC companies range from 12 to 15 years (ClimateCare) to 15 to 25 years (Custom Contracting). Regular servicing helps a furnace last longer.
Should I get a furnace or a heat pump? A furnace costs less up front and handles the coldest days well. A heat pump costs more, also cools, is more efficient and gets rebates; many Ontario homes pair the two.
Can a company sell me a furnace at my door? Not in Ontario, unless you contacted them first and invited them. A contract signed after unsolicited door-to-door marketing is void.
Is there a rebate for a new furnace in Ontario? Not for the furnace itself under the Home Renovation Savings Program. Heat pumps qualify, with pre-approval.
Find an HVAC company near you
Zulma Atlas lists HVAC businesses across 39 towns, from Niagara to Toronto, York and Durham, with the services each one publishes. Find HVAC companies in your town
Sources (checked 20 October 2026)
- Enercare, "The 2026 Buyer's Guide to Furnaces".
- Enbridge Sustain, "How Much Does Furnace Replacement Cost in Ontario?" (24 September 2026).
- Home Depot Canada, "How Much Does It Cost to Replace A Furnace?".
- Dynamic Heat & Cool, "New Furnace Cost Ontario" (28 June 2025).
- Custom Contracting, "Ontario HVAC Cost Guide 2026" (October 2026).
- ClimateCare, "When is the Best Time to Buy a New Furnace?" (updated 15 December 2025).
- Natural Resources Canada, "Gas furnaces" (energy efficiency regulations) (modified 6 November 2025).
- Government of Ontario, "Door-to-door sales and home service contracts" (updated 19 June 2026).
- Home Renovation Savings Program, "Heat pumps".
Written by Uba, founder of Zulma. Last checked 20 October 2026. We re-check these prices and rebates every six months.
