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The cost of a new furnace in Canada depends on the brand, size, furnace model, efficiency ratings, installation complexity, like ductwork modifications, and whether supplementary accessories are added. Most Canadian homeowners opt between a high efficiency furnaces (whether gas or electric) and have it professionally installed by a licensed HVAC technician. Take a look through our tables and checklists below to create a realistic furnace installation budget and see how rebates and Enbridge Sustain's lease-to-own program can help you upgrade your indoor comfort levels without the stress of expensive upfront costs.

WHY PRICES VARY IN CANADA

When it comes to calculating furnace installation costs, there are several factors you need to consider to ensure you install the right furnace for your home:

Furnace size and brand

The square footage of your home directly impacts your furnace size, with larger homes requiring a higher-capacity system. Smaller homes (between 1,000 and 1,500 sq. ft.) often require a furnace capacity between 40,000 and 60,000 British Thermal Units (BTUs), while larger homes (2,500 sq. ft or more) may require a furnace system with 100,000 BTUs or more.

Efficiency rating, AFUE

All furnaces sold in Canada must meet minimum efficiency ratings outlined by Natural Resources Canada, which is measured by the Annual Fuel Utilization Efficiency rating (AFUE). This rating measures how efficiently a furnace converts fuel into heat. A higher AFUE furnace will cost more to install upfront, but can lead to better energy savings over time.

Installation scope

The complexity of the installation process also matters in terms of labour costs. A straightforward installation where an old furnace is replaced with a similar heating system won't cost as much as one that requires new gas lines, venting, electrical panel upgrades, or duct modifications.

Ductwork condition

In a standard Canadian household, approximately 20% to 30% of the air that moves throughout the ductwork can be lost due to gaps, holes, and poor connections, which can increase energy consumption and heating costs. Ensuring your ductwork is properly sealed and balanced can increase installation costs, but it will pay off in the long run.

Thermostat and accessories

Opting for smart thermostats, humidifiers, and UV filters can all improve your indoor comfort levels and air quality, but each add-on will increase your upfront costs when installing a new heating system in your home.

Region and timing

Labour costs will differ across Canadian provinces, and scheduling your installation appointment during peak winter months can affect the availability of equipment, labour, and costs. Installation costs on off-seasons can often provide a more competitive quote.

Affordable monthly payments

With Enbridge Sustain's lease-to-own program, you can get a new furnace installed in your home by one of our local HVAC technician partners across southern Ontario. You get a new furnace installed in your home for $0 down and no payments for the first 12 months of your agreement. You choose a payment plan that fits your needs and pay off your furnace over time. At the end of your agreement, you'll own your equipment outright. No hidden fees or confusing contracts.

Note that other provincial rebates may be available.

QUICK ANSWER

When planning for a new furnace for your home, most homeowners' budgets fall within the average cost listed below, based on furnace type. These ranges include both equipment and labour costs. However, your final cost of a new furnace can vary based on your home size, existing ductwork layout, upgrades, and other regional factors:

• Standard efficiency natural gas furnace with basic install: Budget anywhere from $3,350 to $5,000 for your furnace installation.

• High efficiency natural gas furnace with typical install: Homeowners should budget between $4,500 and $6,750 for their new furnace.

• High-efficiency gas furnace with add-ons or duct changes: Aim to budget anywhere from $6,800 to $9,500 or more.

• Oil or electric replacements: Oil furnaces and electric furnace replacements can vary by province, but average costs typically range between $4,000 and $8,000.

Note that complex installation costs can run higher than these ranges, while straightforward replacements may be lower. Always request at least two to three quotes before deciding which company to work with.

PRICE BREAKDOWN

The following factors will be considered when a professional HVAC company calculates your furnace costs:

Equipment

This includes the model, heating capacity (BTUs), furnace efficiency levels, and warranty coverage. A high-efficiency furnace from a premium brand may cost more upfront, but it will provide better savings and comfort over time.

Labour

Labour costs include removing the existing furnace, disposal of your old furnace, installing your new furnace, ductwork modifications, thermostat programming, and safety tests. Working with a certified technician is essential to ensuring your installation follows all safety and local building codes.

Materials

Installations require more than just the furnace itself. It encompasses electrical wiring, gas fittings, drain tubing, ventilation, and more.

Ductwork and airflow

Sealing leaks, adjusting dampers, and balancing airflow from your new furnace will improve your indoor comfort levels and efficiency ratings, while reducing strain on the system, but will increase labour costs.

Controls and add-ons

Many Canadian homeowners opt to upgrade to smart thermostats and additional accessories like humidifiers and UV air purification systems, which can increase upfront costs.

Permits and inspections

All Ontario furnace installations must follow provincial and municipal building codes, especially when installing a natural gas furnace.

SAMPLE PRICING TABLE

Here is a quick breakdown of the various costs of a new furnace in Canada.

REPAIR OR REPLACE

Not sure whether you should invest in a new furnace? Here's a quick decision checklist:

• The unit is 15 years or older.

• Annual repair costs are rising, and comfort levels are still poor.

• Energy bills are higher than usual.

• You want a quieter operation or better airflow in your home.

If repair costs are 30% to 40% of the cost of a new furnace, consider a replacement.

HOW TO SAVE ON A NEW FURNACE

To save money on your new furnace, here are some practical strategies for a more cost-effective install:

• Get two to three quotes from qualified technicians who perform proper load calculations and sizing.

• Ask about models with strong warranties and good parts availability.

• Check provincial rebates before you buy a new, reliable heating system.

• Consider Enbridge Sustain's lease-to-own program for a new furnace with $0 upfront costs.

• Schedule your appointment during the offseason.