How Much Does It Cost to Replace a Furnace in Ontario is a key concern for homeowners looking to upgrade their heating system. With harsh winters across the province, having a dependable furnace is essential. This guide breaks down average replacement costs, what influences the final price, and how Ontario homeowners can make smart, cost-effective decisions when it’s time to replace an old or failing furnace.
Average Cost to Replace a Furnace in Ontario
In Ontario, the average cost to replace a furnace ranges between $3,500 to $7,000, depending on several variables like furnace type, efficiency, and installation complexity.
Quick cost overview:
| Furnace Type | Installed Cost Range |
| Standard Gas Furnace | $3,500 – $4,500 |
| High-Efficiency Gas Furnace | $4,800 – $6,000+ |
| Electric Furnace | $3,000 – $5,000 |
| Oil Furnace | $4,000 – $6,500 |
These are ballpark figures. For an accurate quote based on your home, contact for a free quote.
What Affects the Cost of Furnace Replacement?
Several factors can affect the total cost of your furnace replacement, including:
Type of Furnace
Gas furnaces are popular in Ontario. They cost more up front but save money over time. Electric furnaces are cheaper initially but often result in higher monthly energy bills.
Efficiency Rating
Look for the AFUE (Annual Fuel Utilization Efficiency) rating. A 95% AFUE furnace wastes less fuel, lowers bills, and costs more than an 80% model—but the savings stack up long-term.
Size of Your Home
A larger home needs more BTUs. More square footage = more heating capacity = higher cost.
Installation Complexity
If your existing ductwork is old or your layout is tight, labour costs can increase. Our team handles both basic and complex installs across the GTA.
Permits and Local Requirements
Ontario furnace replacements may require HVAC permits, which can add $200–$500.
Is Replacing a Furnace Worth It?
Absolutely. Replacing your furnace isn’t just about fixing a problem—it’s an investment in long-term comfort and efficiency.
Key benefits of upgrading:
- Lower monthly energy bills
- Even, consistent heat throughout the house
- Fewer breakdowns and emergency calls
- Cleaner indoor air quality
- Increased property value
- Eligibility for government rebates in Ontario
Need more proof? See our furnace repair service page to compare replacement vs repair.
Signs It’s Time to Replace Your Furnace
Not sure if it’s time to replace? Watch for these signs:
- Furnace is 15+ years old
- Energy bills are creeping higher each winter
- Home has hot and cold spots
- Furnace makes banging or rattling sounds
- Frequent or costly repairs are adding up
If this sounds like your home, schedule a furnace inspection in Mississauga or the GTA with our certified team.
Our Furnace Replacement Process
With HVAC Group, replacing your furnace is simple and efficient. Here’s what to expect:
- In-home assessment to evaluate your heating needs
- Equipment selection based on your space, usage, and budget
- Transparent quote with all costs listed
- Old furnace removal and cleanup
- New furnace installation and performance check
- Review of warranties and ongoing maintenance options
Most installations are completed within a single day.
How to Get the Best Value When Replacing Your Furnace
To make the most of your investment:
- Choose a high-efficiency, ENERGY STAR-rated furnace
- Hire licensed, insured HVAC technicians
- Ask about rebates offered through Enbridge and other Ontario programs
- Consider replacing your AC at the same time to cut down on labour costs
- Protect your system with annual maintenance
Explore our full range of heating services to find what works best for you.
Why Homeowners in GTA Choose HVAC Group
We’ve been serving the GTA for over 15 years, and we understand local homes and weather patterns better than anyone.
What sets us apart:
- Licensed and insured HVAC professionals
- Fast service across all GTA postal codes
- Competitive pricing with financing options
- Top brands like Lennox, Carrier, Goodman, Trane, and Amana
- Available 24/7 for emergency heating service
Check out our furnace installation service to get started.
Frequently Asked Questions
Q: Is it worth replacing a 20-year-old furnace?
A: Yes, a 20-year-old furnace is well past its typical lifespan. It likely runs inefficiently and may be costing you more in energy and repairs. Replacing it with a high-efficiency model can reduce your monthly heating bills and improve home comfort.
Q: How much does it cost to replace a furnace in Canada?
A: In most parts of Canada, including Ontario, furnace replacement costs range from $3,500 to $7,000, depending on the model, efficiency rating, and labour involved.
Q: How much should I expect to spend on a new furnace?
A: Expect to spend $4,000 to $6,500 for a new high-efficiency gas furnace, fully installed. Basic models may be slightly less, while top-tier units with advanced features may cost more.
Q: How many years should a furnace last?
A: A well-maintained furnace should last 15 to 20 years. After that, efficiency declines and the risk of breakdowns increases, making replacement the better long-term option.
Q: What time of year is cheapest to replace a furnace?
A: Spring and early fall are typically the cheapest times to replace a furnace. HVAC contractors are less busy during these periods, and many offer off-season discounts or rebates.
Related Services You Might Need
- Furnace Maintenance
- Heat Pump Installation
- Duct Work Repairs
- Smart Thermostat Setup
- Water Heater Replacement
Book Your Furnace Replacement in the GTA
Don’t wait until your furnace quits in the middle of January. Get in touch with our team for fast, affordable, and expert furnace replacement in the GTA.
Call us today at (416) 807-2752 or book online.