How Much Does Furnace Replacement Cost in Ontario?

Stay Comfortable With a Furnace That Fits Your Home and Budget

The average cost of a furnace replacement in Ontario falls between $4,900 and $8,000 (before tax), and includes professional installation services. Actual costs will vary depending on the type of furnace, home size, ductwork condition, venting, and other potential upgrades required during the installation process.

Summary

• Industry estimates price furnace replacement costs in Ontario between $4,900 and $8,000 before HST (13%).

• Furnace size, capacity, efficiency ratings, and fuel source can impact costs.

• Ductwork modifications, electrical work, and ventilation tasks can also impact costs.

• When obtaining quotes, make sure prices out outlined clearly and transparently; and, should include equipment costs, labour costs, materials, removal, warranties, and applicable taxes.

Installing a new furnace is a big investment for many Ontario homeowners. But beyond the sticker price, its essential that homeowners consider the actual equipment they're installing in their homes to ensure reliability, comfort, and installation quality. 

More Reliable Winter Comfort

A furnace that's correctly sized will provide dependable heat to your home without short-cycling and wasting energy. Proper equipment sizing is especially important when you will be using your appliance for prolonged periods, as it ensures no added stress will be put on the system in order to keep your home comfortable and warm. 

Better Energy Performance

A modern, high-efficiency furnace is designed to optimize energy usage, meaning most savings in colder climates and a reduced impact on the environment. Replacing an older, poorly performing furnace can help you cut back on your heating costs without compromising your comfort levels.

Fewer Unexpected Repairs

As furnaces age, the likelihood of unexpected breakdowns and costly repairs becomes greater. Not only does this impact your finances, but it also interrupts your indoor comfort levels when you need warmth the most. Replacing your unreliable furnace before a mid-winter breakdown occurs. 

Improved Airflow and Comfort

Aging furnaces and poorly maintained duct systems can impact airflow throughout your home. With the right furnace installed, along with ductwork modifications, your heating system will be able to deliver consistent even warmth throughout every corner of your home. 

Furnace replacement costs in Ontario can vary significantly from hour to house. That being said, here is a closer look at some average costs you can expect to encounter across the Greater Toronto Area:

• Straightforward or Entry-Level Replacement: A entry-level, furnace replacement with an 80% annual fuel utilization efficiency (AFUE), will cost you between $4,000 and $5,000.

• Standard High-Efficiency Replacement: A mid-range furnace with an AFUE between 92% and 95%, can cost anywhere from $5,000 and $7,500, or more, depending on the brand, make, and model.

• Premium or Complex Replacement: A premium, high-efficiency furnace with ratings between 96% and 98% AFUE can cost a minimum of $8,000 to $10,000 or more.

Important Cost Callout

Keep in mind that these costs will include labour and the equipment itself, along with any permits required. However, taxes, new thermostat equipment, and other fees may not be included. 

Before replacing your home's heating system, comparing quotes is a non-negotiable in terms of comparing costs and what's included in the final price tag. Always speak to at least two to three companies before moving forward. Additionally, make sure to ask for a detailed breakdown of what is included in these costs.

A furnace replacement quote should include the following:

• The name of the furnace manufacturer

• Furnace make and model

• Furnace capacity

• AFUE efficiency rating

• Single-stage, two-stage, or modulating operation identification

• Blower motor type

• Whether removal of the existing furnace is included or if additional disposal fees apply

• Whether installation labour by licensed technicians

• Whether permits are included

• Manufacturer warranty

• Labour warranty

• Cleanup costs

• 13% HST

• Exclusions

• Whether free maintenance is included

If the HVAC company fails to provide you with a detailed quote before the replacement begins, consider other options. 

The cost of a new furnace includes more than the equipment itself. Factors that affect upfront costs in Ontario include:

Furnace Size and Heating Load

A furnace must be sized according to your home's heating requirements, not just its square footage. A professional technician will conduct a heat-loss assessment that considers things like insulation quality, window and doors, air leakage, ceiling higher, home layout, and local winter conditions.

A furnace that is incorrectly sized for your home will short-cycle, leading to inconsistent indoor temperatures, higher energy usage, and increased strain on the equipment, which often later leads to premature replacements.

Furnace Efficiency

Annual fuel utilization efficiency (AFUE) refers to the percentage of fuel a furnace converts into heat throughout the season, compared to what energy is lost. A higher AFUE rating indicates more fuel being converted to heat rather than being lost.

High efficiency furnaces with greater AFUE ratings do come at a higher price. Whether the investment pays off through energy savings can depend on local gas and electrical rates, weather conditions, how long you keep the equipment, and other factors.

Single-Stage, Two-Stage, or Modulating Operation

Furnace staging refers to how the appliance controls the heating output:

• Single-stage furnace: A single-stage furnace uses one heating output, which means it will blast heat and then shut off. This can lead to noticeable temperature changes. They are the most affordable options on the market.

• Two-stage furnace: A two-stage furnace can operate a lower outputs when less heat is needed and higher outputs when more heat is needed, depending on outdoor temperatures and indoor comfort needs. These models are mid-range in terms of pricing.

• Modulating furnace: A modulating furnace can make small adjustments to its heating output. This leads to optimal energy usage and most consistent temperature control indoors. When comparing these furnaces to others on the market, you'll usually pay a premium cost.

Blower Motor and Thermostat Controls

Blower motor technology can also impact costs. A constant-torque blower operates with a minimum number of speeds, which often leads to a more affordable price tag. On the other hand, a variable-speed blower adjusts airflow output more gradually, which can create steadier temperatures, quieter operation, and better airflow, which can lead to greater costs.

Furthermore, smart thermostats with zoning and humidity controls can increase installation costs as technicians will need to configure the technology to communicate accurately with your new furnace, adding more work for them.

Furnace Brand, Model, Warranty, and Parts Availability

When choosing a new furnace for your home, look beyond the brand. Access to parts, manufacturer support, contractor familiarity, and warranty coverage are all factors you should be considering when comparing models.

Ductwork and Airflow

Installing a new furnace may uncover issues with your duct system. Whether they're damaged, incorrectly installed, or undersized, if not repaired you'll experience airflow and comfort issues even with a new heating system installed. During your home assessment, technicians may suggest ductwork modifications, which can increase part and labour costs.

Furnace Venting

High-efficiency systems require intake and exhaust venting compatible with their output. Your current home setup may not accommodate the new equipment as is. In this case, technicians may need to install new piping, relocate the vents, and install a condensate drain line, which increases the installation complexity.

Gas and Electrical Work

If you're installing a natural gas furnace, upgrades to existing infrastructure may be required. Electrical panel upgrades are also common to ensure your home can handle the additional electrical load safely. This labour must be conducted by professional, licensed technicians to ensure building and safety codes are met.

Installation Location and Access

A furnace installed in a clean, easily accessible storage room is typically easy to disconnect, remove, and replace compare to one sitting in a cramped utility closet with items in the way. Depending on access, installation costs may vary.

Location, Travel, and Availability

The Greater Toronto Area is massive and the availability of HVAC companies can vary between rural areas and the downtown core. Homes located in Stratford or Kitchener, for example, may include additional travel fees and technician availability compared to those living in Oakville or Mississaugua. 

Hybrid system upgrades combine the energy-efficiency of a heat pump and the powerful heating capabilities of a natural gas furnace. During the wintertime when temperatures fall well-below freezing, the hybrid system automatically initiates your furnace to deliver consistent warmth to you home. Then, as temperatures become milder, the system switches to the heat pump to deliver energy savings without compromising your comfort.

Comparison Table

The government of Ontario has numerous incentive programs to help homeowners with the cost of upgrading to a new HVAC system. For example, the Home Renovation Savings Program currently offers the following:

• Up to $12,000 in rebates when installing a new heat pump.

• $100 for smart thermostat integration

• Up to $7,000 in insulation upgrades

• and more!

Note that eligibility requirements and amounts will vary between applications. Additionally, some upgrades may require an assessment or pre-approval.

Lease-to-own options, like those offered by Enbridge Sustain, which allow you to get a new furnace or heat pump installation in your home for $0 down and no payments for the first 12 months of your agreement. You make affordable monthly payments for your lease term and in the end, you own your equipment outright!

Ontario Contractor Verification

When choosing which HVAC company to work with for your furnace replacement in Ontario, make sure the contractors are licensed to work in the province using the Technical Standards and Safety Authority registry. Registration confirms they are authorized to conduct fuel-related work.

Furnace Quote Red Flags

When comparing quotes, watch out for the following red flags.

• No complimentary in-home inspection or written, detailed quote.

• No furnace model number or capacity specified.

• Vague descriptions of the equipment being installed.

• No contractor-registration information available.

• No load calculation is performed.

• Missing HST information.

• Missing warranty details.

• Essential installation work excluded from price.

• They pressure you to sign the contract.

• Large unexplained discounts.

• Price changes without documented changes.

To reduce furnace replacement costs without cutting corners or compromising your comfort, here's what you can do:

• Plan your replacement before a complete breakdown occurs.

• Request an itemized written quote for at least three contractors.

• Compare equivalent equipment and installation scope from different companies.

• Prioritize proper sizing and installation quality when it comes to costs.

• Compare parts and labour warranties.

• Consider long-term ownership costs compared to upfront costs.

• Ask whether a furnace, heat pump, or hybrid system fits your home as-is, or whether upgrades are needed.

• Check whether you apply for provincial rebates through the Home Renovation Savings Program website.

• Consider lease-to-own options to reduce upfront costs.

• Consider replacing your furnace in the off season.