How Much Does a New Furnace Cost in Ontario? (2026 Pricing Guide)

If your furnace is on its way out, the first question is always the same: how much is this going to cost me? The answer depends on a few things — the efficiency rating you choose, what your existing setup looks like, and whether you qualify for rebates. This guide covers real 2026 pricing for Ontario, not vague national averages.

Furnace Price Ranges by Efficiency Tier

Furnace prices in Ontario fall into three broad tiers based on AFUE (Annual Fuel Utilization Efficiency) rating. AFUE tells you how much of the gas your furnace burns actually becomes heat in your home. The rest goes up the flue.

Standard Efficiency: 80% AFUE ($3,500 - $4,500 installed)

These are non-condensing furnaces. They vent through a metal chimney flue and waste about 20% of the fuel they burn. Ontario building code still allows 80% AFUE furnaces in replacement situations where the existing venting is already set up for it, but you cannot install one in a new build. If your current furnace is an 80% model and your chimney liner is in good shape, staying at this tier keeps costs down. But you are leaving money on the table every month in gas bills.

Mid-Efficiency: 92-95% AFUE ($4,500 - $6,500 installed)

This is where most Ontario homeowners land. A 95% AFUE furnace captures almost all the heat from combustion and vents through PVC pipe out the side of your house instead of a chimney. The installation cost is higher partly because of the furnace itself and partly because switching from chimney venting to sidewall venting requires new PVC runs and potentially sealing the old chimney.

At current Ontario gas rates (around $0.28-$0.32 per cubic metre from Enbridge), upgrading from 80% to 95% AFUE saves roughly $300 to $500 per year on a typical 1,500 square foot home. That means the higher upfront cost pays for itself in 4 to 7 years.

High Efficiency: 96-98% AFUE ($6,000 - $8,500 installed)

Top-tier condensing furnaces squeeze every last bit of heat from the combustion process. Models like the Lennox SL98V or Carrier Infinity 98 hit 98% AFUE with modulating burners and variable-speed blowers. The comfort difference is real — these furnaces ramp up and down gradually instead of blasting on and off, which means fewer temperature swings and quieter operation.

The premium over a 95% unit is $1,500 to $2,500, and the gas savings between 95% and 98% are modest — maybe $50 to $100 per year. The real value is in comfort, noise reduction, and eligibility for higher rebate amounts.

What Affects Installation Cost

The price ranges above assume a straightforward swap — pulling out the old furnace and dropping in a new one with minimal changes to the existing setup. Several factors can push the cost higher:

Ductwork Modifications

If your existing ductwork is undersized, damaged, or poorly designed, the new furnace will not perform to its potential no matter how efficient it is. Ductwork repairs or modifications can add $500 to $3,000 depending on what is needed. A full duct replacement runs $5,000 to $10,000+. Your installer should do a Manual J heat load calculation and inspect the ductwork before quoting — if they do not, find someone who does.

Venting Changes

Switching from a chimney-vented 80% furnace to a sidewall-vented high-efficiency unit means running new PVC intake and exhaust pipes through the wall. This typically adds $300 to $800 to the job. If the PVC run is long or requires going through multiple floors, it can be more.

Gas Line Upgrades

Some older homes have undersized gas lines. If you are upgrading to a higher-BTU furnace or adding a furnace where there was not one before, the gas line may need to be upsized. This is a $500 to $1,500 job depending on the run length. Your installer and the gas utility (Enbridge) coordinate this.

Electrical Requirements

Modern furnaces need a dedicated electrical circuit. Older homes sometimes have the furnace sharing a circuit with other equipment, which is a code violation. Adding a dedicated circuit is typically $200 to $500.

Permits

A furnace installation in Ontario requires a building permit and a gas permit. Legitimate installers include these in their quoted price. If someone quotes you a price "without permits," walk away — that is a red flag for unlicensed work. Permit costs vary by municipality but are typically $100 to $300.

Brand Comparison

The Ontario HVAC market is dominated by a few major brands. Here is a realistic look at what you are choosing between:

• Goodman / Amana: Budget-friendly, manufactured by Daikin. Solid warranty (Goodman offers a lifetime heat exchanger warranty on most models). These are workhorses — nothing fancy, but reliable. Good choice if budget is the primary concern.
• Lennox: Premium brand with some of the highest efficiency ratings available (SL98V hits 98.7% AFUE). Quieter operation, better build quality, but parts are more expensive and proprietary. Lennox furnaces need Lennox parts.
• Carrier / Bryant: Mid-to-premium range. The Infinity series is excellent. Good balance of quality and parts availability. Bryant is the same equipment under a different badge, usually sold at a lower price point.
• Trane / American Standard: Known for durability. The XV series is their top line. Slightly louder than Lennox but extremely reliable. American Standard is the same equipment as Trane at a lower price.
• Napoleon: Canadian-made (Barrie, Ontario). Competitive pricing, good warranty, and parts are readily available domestically. Worth considering if you want to buy Canadian.

The brand matters less than the installation quality. A mid-range furnace installed correctly will outperform a premium furnace installed poorly every single time. Focus on finding a licensed, experienced installer first, then discuss brands.

Ontario Rebates for Furnace Installation (2026)

Several programs can reduce your out-of-pocket cost significantly:

Enbridge Home Efficiency Rebate

Enbridge gas customers can receive rebates for upgrading to a high-efficiency furnace. The amount depends on the efficiency rating and whether you bundle it with other upgrades (insulation, windows, etc.). Typical furnace-only rebates range from $250 to $800. You need a pre-retrofit EnerGuide evaluation before the work begins and a post-retrofit evaluation after. The evaluations cost about $600 total but are partially offset by the rebate.

Home Renovation Savings Program

This provincial program offers rebates on energy-efficient home improvements including HVAC upgrades. Rebates for qualifying furnaces range from $250 to $1,000 depending on the efficiency tier. Check the current program guidelines — eligibility and amounts change periodically.

Canada Greener Homes Loan

This federal program offers interest-free loans up to $40,000 for eligible home energy retrofits, with repayment terms up to 10 years. A furnace upgrade qualifies if combined with other improvements. You need an EnerGuide evaluation to participate.

Stacking Rebates

Yes, you can stack most of these programs. An Enbridge rebate plus the provincial Home Renovation Savings Program can knock $500 to $1,800 off your total cost. Your installer should be familiar with these programs and help you with the paperwork — if they are not, that is another red flag.

Repair vs. Replace: When Does Replacement Make Sense?

Not every furnace problem means you need a new one. Here is a practical framework:

• Furnace is under 12 years old and the repair is under $500: Repair it. You have years of life left.
• Furnace is 12-18 years old and the repair is $500-$1,500: This is the grey zone. Consider the repair cost against the furnace's remaining lifespan. If the repair is more than 50% of the cost of a new furnace, replace.
• Furnace is 18+ years old: Replace it regardless of repair cost. You are on borrowed time, and a modern furnace will pay for itself in energy savings within a few years.
• Cracked heat exchanger at any age: Replace the furnace. Heat exchanger replacement costs almost as much as a new furnace and does not address other age-related wear.

If you are not sure whether a furnace repair or full furnace replacement makes more sense, we will give you an honest assessment. We do not push replacements on furnaces that have good years left in them.

Financing Options

Most Ontario HVAC companies offer financing. Typical terms:

• 0% interest for 12 months: Common promotional offer. Good if you can pay it off within the year.
• Low interest (4.9%-9.9%) for 5-10 years: Makes a $6,000 furnace about $60-$100/month. Factor in the gas savings from a more efficient unit and the net monthly cost is lower than it looks.
• Rental programs: Avoid these. You will pay 2-3x the cost of the furnace over the rental term and you never own it. If you cannot afford to buy, financing is a much better option than renting.

Get a Real Quote

Online price ranges are useful for budgeting, but your actual cost depends on your specific home. Relica Comforts provides free in-home quotes for furnace installation across Barrie, Toronto, and everywhere in between. We show up, assess your setup, and give you a written quote with no surprises. Licensed, insured, and TSSA-certified. Call (647) 491-6009 or request a quote online.