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| Installing a new furnace in Ontario typically costs between $4,000 and $9,500. The price depends on the job requirement complexity, your chosen model, your home’s heating needs, and whether your space needs retrofitting. |
Buying a new furnace in Ontario won’t be cheap, but knowing where your money goes can help you make better, more informed decisions. Choosing the right size, model, and efficiency level for your household matters as much as the final price.
Let’s plan ahead and get the best value for your money. Here’s what you should know when choosing a furnace to avoid surprise fees without compromising indoor air quality.
The upfront costs of installing furnaces typically depend on your preferred model, heating needs, and the current size of your living space. Here are the key factors to consider when setting your budget:
Furnaces come in two options: gas and electric furnaces.
Also, check your preferred model’s annual fuel utilization efficiency (AFUE), which measures how much of the furnace’s fuel is converted into usable heat.
For example, a 90% AFUE rating means 90% of the energy source becomes usable heat, while the remaining 10% is lost. A higher AFUE rating means better energy efficiency and lower long-term operating costs, but it often comes with a higher upfront price.
Larger homes typically require 80,000 BTUs or more. As you might expect, models with a higher heating capacity are often more expensive.
However, don’t just opt for a smaller model to save money. Undersized furnaces that run constantly will wear out more quickly, while oversized models tend to short-cycle and waste energy. To determine the correct size, your installer should perform a Manual J load calculation based on the square footage and insulation type.
Your HVAC technicians will have to assess your living space before installation. Old or leaky ducts may need sealing or replacement to work with modern high-efficiency furnaces.
Likewise, expect to pay for new venting requirements, such as sidewall venting or chimney liners, if you’re switching from one fuel type to another.
The price of a furnace also depends on the brand you get. Premium brands like Lennox or Carrier often cost more, although they offer better warranties and higher efficiency ratings. On the other hand, basic models with single-stage heating are cheaper but less energy-efficient and noisier.
For homes in Ontario, heating and cooling systems are equally essential. Winters are cold, but summers can be just as harsh. That’s why many homeowners consider replacing both their furnace and air conditioner at the same time. It’s cost-effective but not always necessary.
Here’s how a furnace-only upgrade compares to the efficiency, long-term value, and cost for furnace and AC replacement combos.
| Decision Factor | Furnace Only | Furnace + AC Combo |
| Average Cost Range | $4,000 to $9,500 | $7,500 to $14,000 |
| Installation Efficiency | One-day job if replacing the same unit | More cost-effective than scheduling separate installs |
| Component Compatibility | May need future AC adjustments | Matched components = better performance |
| Rebates/Bundling Opportunities | Limited opportunities | Eligible for flexible bundled discounts |
| Warranty Coverage | Separate warranties | Unified coverage from one manufacturer |
| Best For | Strict budgets, no cooling needs | Homes needing a full HVAC upgrade |
Even if a new furnace costs more upfront, certain situations require its complete replacement. Using an ageing or malfunctioning furnace system is extremely dangerous. In addition to wasting energy, you’re exposing your household to potential carbon monoxide leaks, electrical failures, and fire hazards.
If you notice any of the following warning signs, call our 24-hour furnace maintenance and repair team at LG Home Comfort for immediate repair:
Learn more: The Ultimate Guide To Buying A New Furnace
Some Ontario residents have access to a few incentive programs for upgrading to energy-efficient heating systems. While these incentives won’t cover your entire furnace or installation cost, they can help offset part of the investment.
Below are two current offers Ontario homeowners may be eligible for:
The City of Toronto offers furnace rebates to Enbridge Gas customers as part of its energy efficiency incentives. Qualified households receive $750 for purchasing high-efficiency furnaces, i.e., those with an AFUE rating of 90% or higher for natural gas or propane.
Here’s what you need to qualify as an Enbridge customer in Toronto.
Since this is a municipal incentive for Toronto specifically, it does not apply province‑wide. Ontario residents outside Toronto cannot apply for this program.
The Enbridge Home Winterproofing Program offers free home energy upgrades for eligible Ontario homeowners. Enbridge Gas delivers it in partnership with Save on Energy.
The program focuses on reducing heat loss to improve energy efficiency. Qualified households can receive free insulation, draft-proofing, and smart thermostats, all of which are installed at no cost.
To apply, you’ll need to meet all of the following criteria:
Note: This program is not a direct rebate for new furnace purchases. Instead, it helps reduce heating demand, which complements furnace efficiency.
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