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January 14, 2026

What to Expect: A New Furnace Cost & Installation Guide

Two HVAC technicians installing a residential furnace, connecting ductwork and gas lines in a basement utility room

Navigating furnace cost and installation shouldn’t be a headache. This guide covers furnace new installation essentials, from high-efficiency ratings to labour. Install new heater technology with LG Home Comfort’s 24/7 expert support for total home warmth.

More than being a season, winter in Southern Ontario is a survival test for your home. If your old heater starts sounding like a percussion ensemble when the mercury drops, it may be time to research furnace cost and installation quotations.

At LG Home Comfort, we believe your home should be a sanctuary, not a walk-in freezer. As a family-run business, we treat your comfort with the same care we give our own “Little Gills”: with empathy, professional expertise, and a “leave it to us” attitude.

If you’re wondering whether to repair that 20-year-old unit or finally install new heating technology, this guide breaks down the costs, benefits, and professional steps involved in a furnace new installation.

Red Flags: When to Retire Your Furnace

Before talking money, let’s talk timing. Your furnace is a silent workhorse, but it will eventually give up the ghost. Watch for these telltale signs that a new installation is on your horizon:

  • The Age Factor: Most furnaces have a lifespan of 15 to 20 years.
  • The Repair Loop: If you are calling an HVAC technician for furnace services more often than your best friend, those labour costs are better spent on a replacement.
  • Bill Shock: Unexplained spikes in your utility bills often mean your outdated system is working overtime just to provide a whisper of warmth.
  • Odd Noises and Odours: Popping or screeching are signs of internal distress, specifically a cracked heat exchanger, that a simple tune-up won’t fix.

Breaking Down the Furnace Cost and Installation

In Ontario, the average cost for a new heating system typically lands between $3,500 and $8,000. However, when asking how much does it cost to install a furnace in Canada, the answer can vary depending on the following factors. 

Feature Impact on Cost
Type of Furnace  Natural gas furnaces are common, but oil furnaces or propane furnaces may be needed in rural areas.
Energy Efficiency A high-efficiency model with a high annual fuel utilization efficiency (AFUE) rating costs more upfront but lowers energy consumption.
Furnace Size A licensed HVAC professional must size furnace units correctly based on your home’s heating capacity.
Installation Complexity New gas lines, electrical hookups, or duct modifications will increase the total installation costs.

⇨ Pro Tip: Don’t forget the “hidden” help! In 2026, Ontario homeowners can access tax credits and energy rebates for installing energy-efficient furnaces. We help you navigate these to ensure you get every dollar you deserve.

Learn more: The Ultimate Guide to Buying A New Furnace

A licensed technician in blue coveralls and safety glasses fixing an open furnace unit in a residential basement

Image Source: Shutterstock

The Professional Process: Our “Human Approach”

When you choose LG Home Comfort to install new heater systems, you aren’t just getting a machine; you’re getting a team of licensed technicians.

We handle the heavy lifting so you don’t have to.

1. Assessing Your Home

We don’t do “guesstimates.” An HVAC technician visits your home to perform a load calculation. This ensures you get the right furnace for consistent warmth without wasting energy.

2. Preparing and Removing Your Furnace

On installation day, we treat your home like our own. We safely perform the removal of your old furnace, ensuring all gas lines and electrical connections are handled with professional care.

3. Installing with Precision

Our team positions the new furnace to ensure it meets all local building codes. We check the heat exchanger, secure the electrical panel connections, and confirm the furnace and air conditioner work in harmony if you have a combined system.

4. Testing for Peak Efficiency 

We never just “plug and play.” We run the new unit through a full start-up cycle to ensure your furnace efficiency is optimized. Finally, we show you how routine maintenance keeps your high-quality furnace running for years.

Why Professional Expertise Trumps DIY

It might be tempting to treat a furnace like a DIY weekend project, but the risks are severe. Gas furnace installation, for example, involves high-pressure gas and complex wiring. A mistake can lead to fire hazards or carbon monoxide risks.

Furthermore, most manufacturers require a licensed HVAC professional to maintain the warranty’s validity. At LGHC, our licensed technicians provide the advanced technology and innovative design your home deserves with the best performance guaranteed.

FAQs About Furnace Cost and Installation


Most homeowners in Canada spend between $3,500 and $8,000 on the right furnace.
Your furnace installation costs depend on the type of furnace, fuel source like natural gas,
and the difficulty of the installation process.


A standard furnace installation usually requires four to eight hours.
This timeframe includes furnace removal of the old furnace, securing gas lines,
and testing the new system for peak efficiency.


No, you should never attempt a DIY setup.
A HVAC technician must handle natural gas connections and electrical panel wiring
to prevent fires and ensure your home stays safe.


Choosing energy-efficient furnaces helps significantly reduce monthly utility bills.
These units optimize energy consumption, provide consistent warmth,
and often come with tax credits to offset upfront costs.

Key Takeaways

  • Financial planning: Expect an average cost of $3,500 to $8,000 for a new heating system in Ontario.
  • Efficiency rewards: Investing in high-efficiency furnaces lowers energy consumption and qualifies you for tax credits.
  • Precision sizing: A licensed HVAC professional performs a load calculation to ensure your furnace type and size match your square footage.
  • Safety standards: Proper furnace installation requires managing gas lines and electrical hookups to meet local building codes.
  • Warning indicators: Frequent furnace services or a damaged heat exchanger suggest your outdated system needs a full furnace replacement.
  • Expert oversight: Hiring licensed technicians protects your warranty and ensures the best performance from your new unit.

Leave the Chill Behind

A new furnace is a major investment, but it shouldn’t be a major headache. Whether you’re looking for high-efficiency furnaces to achieve lower utility bills or need an emergency furnace replacement, we have someone for you. 

We operate 24/7, offering same-day or next-day service because we know that a broken furnace is an emergency, not an inconvenience.

Book your free consultation so one of our experts can provide a personalized estimate for your home.

Terms and Conditions

  • Once an initial service has been completed, the customer will be on a one-year commitment
  • After the initial 12 months, the contract will be renewed on a month-to-month cadence
  • If a service is completed for the next year, it automatically renews the commitment for an additional year
  • Customers can cancel at any time after the 12-month initial commitment as long as the following year’s service has not been completed.
  • Customers need to provide 30 days written notice in order to cancel their plan