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New Furnace Cost in Ontario

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Over time, furnaces inevitably need replacement, typically after about 20 years of service. In fact, statistics show that up to 75% of premature furnace breakdowns could have been prevented with regular maintenance. Understanding the various elements that influence the price of your new furnace, including furnace installation cost and potential rebates, is crucial for making an informed decision. 

This blog post explores everything you need to know about the new furnace cost in Ontario, including furnace prices, the cost of new furnace Ontario specifically, and the furnace installation cost (labour). If you’re curious about how much is a furnace in Ontario, we’ll cover this topic to help you budget and plan effectively.

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When Your Furnace Needs to be Replaced

If you are researching the new furnace cost Ontario ranges, it’s likely because your current furnace is no longer functional. To prevent future issues, it’s essential to understand why many homeowners find themselves needing to keep up with current furnace prices, such as the furnace cost Ontario.

Maintenance Negligence

Neglecting regular maintenance can lead to inefficiencies and failures, drastically shortening a furnace’s lifespan. If routine checks are ignored, several issues may arise, potentially increasing the cost of new furnace and installation:

  • Clogged Filters: Reduced airflow, leading to increased strain on the furnace, higher energy consumption, and potential system overheating.
  • Wear and Tear on Mechanical Components: Components like the blower motor and belts can wear out faster if not regularly checked and maintained, potentially leading to a sudden breakdown and the shortening of the appliance’s lifespan.
  • Ignition or Pilot Control Issues: Faulty ignition or pilot could make the furnace unreliable or cause it not to fire at all, increasing the cost of a new furnace in Ontario due to premature replacement.
  • Accumulation of Dirt and Debris: This can lead to inefficiency in operation and even potential hazards like carbon monoxide leaks if the heat exchanger becomes compromised.
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Old Age

The average furnace will need to be replaced after 20 years. However, frequent repairs and decreased efficiency can indicate that it’s time for a replacement sooner. Awareness of the new furnace cost Ontario is crucial for budgeting purposes.

Increased Energy Bills

If your energy bills are rising despite your usage staying the same, it could indicate that your furnace is losing efficiency and may need to be replaced, whether with a new furnace or a heat pump. This rise in costs often justifies the cost of new furnace Ontario, as newer models are significantly more efficient.

New Furnace Cost

Understanding the various costs associated with purchasing and installing a new furnace can help you budget appropriately. The furnace installation cost is influenced by a range of factors, including the type of furnace, its efficiency level, brand, and even geographical location, such as Ontario. Here we break down these furnace prices further to help you navigate the process of choosing and installing a furnace.

New Furnace Cost

The cost of a new furnace in Ontario varies significantly based on several key factors:

Type of Furnace

Furnaces come in different types powered by various fuel sources, each affecting the initial new furnace cost Ontario:

  • Natural Gas Furnaces: Typically range from $3,000 to $4,500. These are popular in Ontario due to their efficiency and the availability of natural gas.
  • Electric Furnaces: Generally cheaper, ranging from $1,500 to $2,500, but tend to have higher operational costs due to electricity prices.
  • Oil Furnaces: Cost between $2,500 and $6,000, suitable for areas without natural gas service.
  • Propane Furnaces: Similar in cost to oil furnaces, suitable for rural areas, ranging from $2,500 to $6,000.
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Efficiency Levels

  • High-efficiency Furnaces: typically rated 90% AFUE (Annual Fuel Utilization Efficiency) and above, can cost between $5,000 and $7,000. These furnaces save more on energy bills but have a higher upfront cost.
  • Mid-Efficiency Furnaces: Usually rated between 80% and 90% AFUE, and can range from $3,000 to $4,500.
  • Standard Efficiency Furnaces: Less expensive upfront, typically under $3,000, but cost more in the long run due to higher fuel usage.


Premium brands often feature advanced technology and longer warranties, influencing the cost of a new furnace in Ontario. Brands like Lennox, Carrier, and Trane might be on the higher end of the price spectrum compared to more budget-friendly options like Goodman or Rheem.

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Cost to Install Furnace

The labour costs associated with furnace installation can vary based on the complexity of the job and the company you choose. The typical furnace installation cost can range from $500 to $1,000, which is generally included in the total price quoted by most HVAC companies. Factors influencing installation costs include:

  • Complexity of Installation: Simple replacements tend to be less expensive, while converting from one type of furnace to another, or installations requiring extensive ductwork modification, will increase costs.
  • Location: Urban areas might offer more competitive pricing due to the higher number of service providers.
  • Additional Services: Including duct cleaning, modifications, or upgrades to thermostats and other home HVAC components.

Overall, when considering a new furnace cost Ontario residents should also factor in long-term savings from energy efficiency, potential rebates available for high-efficiency units, and the reliability of the brand chosen. These factors together will affect the cost of new furnace installed and help ensure that you make a well-informed decision that balances upfront costs with long-term benefits.

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Rebates to Lower New Furnace Cost Ontario

Taking advantage of government and utility provider rebates can significantly reduce the cost of new furnace and installation. Programs like the Greener Homes Rebate offer substantial savings for homeowners investing in energy-efficient home upgrades.

FAQs About New Furnace Cost in Ontario

Here are some common questions homeowners have when considering the furnace installation cost.

Do furnace prices directly impact its efficiency?

Yes, generally, higher-priced furnaces offer greater efficiency, saving you money on long-term energy costs.

Are there better or worse furnaces for Ontario’s climate?

Furnaces with higher AFUE ratings are better suited for Ontario’s cold climate, offering more efficient heating and lower operational costs.

How much to replace a furnace?

The total cost of new furnace and installation can vary, but generally falls between $5,000 and $7,000 in Ontario.

Conclusion: New Furnace Cost in Ontario

Investing in a new furnace is a significant but necessary expenditure that enhances comfort and efficiency in your home. At Dynamic Heating and Cooling, we provide comprehensive services to help you choose the best furnace for your needs, ensuring professional installation and long-term satisfaction. Contact us today to learn more about your options and how we can make your new furnace installation seamless and affordable.

Sara Tigau
Sara Tigau

Sara Tiagu plays a vital role at Dynamic Heating and Cooling, managing both the marketing and operations. Her contributions are instrumental in ensuring the company's smooth and seamless daily operations.

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