New Furnace Cost in Ontario: What Homeowners Should Expect

Ontario’s cold winters demand a reliable and efficient furnace to keep homes warm and comfortable. If you’re considering a new furnace installation, understanding the complete cost picture—from equipment to installation and maintenance—is essential. This guide helps Ontario residents navigate furnace costs, local factors like energy efficiency incentives, permits, and choosing reputable professionals to ensure your investment pays off.

Top 5 Furnace Installation Companies in Ontario

Ontario has many trusted HVAC contractors serving cities like Toronto, Ottawa, Mississauga, and Hamilton. These companies provide expert furnace installation, energy audits, and excellent customer service tailored to Ontario’s climate and regulations.

ClimateCare Heating & Cooling

ClimateCare Heating & Cooling specializes in high-efficiency furnaces suited for Ontario’s harsh winters. Based in Toronto, they prioritize energy savings and offer detailed consultations to help homeowners select furnaces that reduce utility bills. Their licensed technicians also assist with permit applications and offer timely installation services.

Maple Leaf Furnace Services

Serving the Greater Toronto Area and surrounding communities, Maple Leaf Furnace Services emphasizes customer satisfaction and thorough inspections before recommending furnace replacements. They work with top brands to provide units that meet Ontario’s building codes and often guide clients through rebate programs for energy-efficient upgrades.

True North Heating Solutions

True North Heating Solutions based in Ottawa brings years of experience installing furnaces that withstand cold snaps and snowstorms. Their team ensures proper sizing and setup for optimal performance and longevity. They offer maintenance plans and emergency repair services, critical during Ontario’s long heating season.

Comfort Pro HVAC

Comfort Pro HVAC, located in Mississauga, combines modern technology with reliable workmanship. They focus on furnaces with advanced airflow and smart thermostats, helping Ontario homeowners improve indoor air quality while keeping energy consumption low. Their clear pricing and financing options make furnace replacement straightforward.

Ontario Furnace Experts

Ontario Furnace Experts serve Hamilton and nearby areas with personalized furnace installation and repair solutions. Known for their prompt response and professional approach, they handle everything from initial assessment to post-installation inspections to ensure your new furnace exceeds expectations and complies with the latest local regulations.

Factors Affecting New Furnace Cost in Ontario

Several key factors influence the cost of a new furnace in Ontario. Knowing these elements helps homeowners budget accurately and choose the best furnace for their needs.

Furnace Type and Fuel Source

Furnaces in Ontario are typically powered by natural gas, propane, or electricity. Natural gas models are most common due to cost-effectiveness and availability, especially in urban centers like Toronto and Ottawa. Electric furnaces often cost less upfront but have higher operating costs. Propane furnaces are ideal for rural properties without natural gas access but may have higher fuel expenses.

Efficiency Rating (AFUE)

The Annual Fuel Utilization Efficiency (AFUE) rating measures furnace efficiency. Higher AFUE units convert more fuel into heat, reducing utility bills. In Ontario, units with 90% or higher AFUE are popular, supported by provincial incentives encouraging efficient systems. While these units have a higher upfront cost, long-term savings and comfort improvements justify the investment.

Size and Capacity

Your furnace’s capacity must match your home’s size, insulation, and design. Oversized furnaces waste energy and shorten lifespan, while undersized units struggle to maintain warmth. HVAC professionals in Ontario perform heat load calculations considering local climate conditions, including insulation standards influenced by building codes and colder outdoor temperatures.

Installation Complexity

Installation costs vary based on existing ductwork condition, furnace location, and any required upgrades to ventilation or electrical systems. Older homes in Ontario might need additional work to meet current safety standards or accommodate modern furnaces with features like variable speed blowers and smart controls.

Permits and Building Codes

Ontario requires permits for furnace installation to verify compliance with safety and efficiency regulations. Licensed contractors usually secure these permits and ensure installations meet the Ontario Building Code. Factoring permit costs and inspections into your budget is smart to avoid surprises.

Average Cost Breakdown for New Furnace in Ontario

Here’s a table summarizing typical furnace costs for Ontario homes, including equipment, installation, and additional expenses.

Cost Component	Price Range (CAD)	Notes
Furnace Unit (Natural Gas)	$2,500 – $5,500	Higher efficiency units cost more upfront
Installation	$1,500 – $3,500	Includes labor, ductwork modifications, venting
Permits and Inspections	$200 – $500	Required by Ontario building authorities
Additional Components	$300 – $1,000	Thermostats, zone controls, furnace accessories
Total Average Cost	$4,500 – $10,500	Depending on furnace type and home specifics

Energy Efficiency Incentives and Rebates in Ontario

Ontario utilities and governments offer programs to help reduce the financial burden of upgrading to energy-efficient furnaces. Homeowners should investigate programs like the Canada Greener Homes Grant, which provides significant rebates for upgrading to high-efficiency heating systems.

Local utilities, especially in cities like Toronto and Ottawa, may also offer rebates or financing options to encourage replacing older furnaces. Be sure to ask your HVAC provider about available incentives before purchasing.

Signs You Need a New Furnace in Ontario

Ontario’s extreme winter temperatures mean an unreliable furnace can quickly become a major discomfort and safety risk. Watch for these warning signs that a new furnace may be necessary:

• Frequent breakdowns or costly repairs.
• Uneven heating or cold spots in the home.
• Increasing energy bills despite consistent usage.
• Furnace age over 15-20 years, typical lifespan for many units.
• Visible rust, cracks, or unusual noises from the unit.
• Pilot light or ignition problems.

Choosing the Right Furnace for Ontario Homes

Pro tip: Selecting a furnace tailored to Ontario’s climate and your home’s insulation quality ensures optimal comfort and energy savings. Consider models with variable speed blowers, multi-stage burners, and smart thermostats for enhanced control.

Natural gas furnaces remain the most cost-effective option for most Ontario homeowners, but those in off-grid areas might opt for propane or electric systems. Proper sizing and professional installation are critical to maximize your furnace’s efficiency and lifespan.

Permits and Ontario Building Codes for Furnace Installation

Furnace installations in Ontario must comply with the Ontario Building Code covering gas appliances, ventilation requirements, and safety standards. Contractors should obtain municipal permits and schedule inspections to verify compliance. This process protects homeowners and adds peace of mind that installations meet strict provincial safety criteria.

Maintaining Your Furnace in Ontario’s Climate

Regular maintenance maximizes furnace lifespan and reliability in Ontario’s demanding cold. Schedule annual inspections each fall, just before the heating season begins. Tasks include cleaning burners, inspecting heat exchangers, checking thermostats, and testing safety controls. Keeping filters clean and ducts sealed also improves efficiency and indoor air quality through winter.

Frequently Asked Questions About New Furnace Costs in Ontario

How long does a new furnace installation take?

Typically, a professional furnace installation in Ontario takes one to two days. Complex installations or homes requiring ductwork upgrades may take longer.

Can I get financing for a new furnace in Ontario?

Yes, many HVAC companies offer financing options. Additionally, government and utility incentive programs sometimes provide rebates or low-interest loans to support efficient furnace installations.

What size furnace do I need for my Ontario home?

The correct furnace size depends on your home’s square footage, insulation, and windows. A professional contractor will perform a heat load calculation to recommend the right size for optimal comfort and efficiency.

Are tankless water heaters included in furnace installation costs?

No, tankless water heaters are separate systems. Furnace costs and installation are specific to your home heating system.

How often should I replace my furnace filter?

In Ontario’s climate, replace furnace filters every 1-3 months during the heating season to maintain airflow and air quality.