How much does a new furnace cost in Ontario? (2026)

Prices checked October 2026. One thing has changed that older price lists miss: every gas furnace manufactured for sale in Canada since July 3, 2019 must be at least 95% AFUE (annual fuel utilization efficiency) under the federal Energy Efficiency Regulations. The cheap 80% furnace is no longer an option for a house in Ontario, so the lowest real price is a single-stage condensing furnace, not a mid-efficiency one. If a quote or website still prices an 80% unit, treat its numbers with care.

How much does a new furnace cost by type?

The burner and blower set most of the price. A single-stage furnace is fully on or off, a two-stage runs on low most of the time, and a modulating furnace adjusts its flame in small steps. More stages mean steadier, quieter heat, at a higher price and with dearer parts.

How these ranges are built: we compared three 2026 Ontario price guides (one independent, two from GTA heating contractors), moved their low-end figures up to 95% models, and kept the band where at least two agreed. A typical quote is the furnace at about $2,000 to $4,500, a day of work by a two-person crew at about $1,000 to $2,000, removal of the old unit at $75 to $300, and a permit where required. Bigger homes, premium brands and harder installs sit at the top.

What makes a furnace replacement quote go up?

The house, more than the furnace. Two homes on the same Newmarket street can get quotes $2,000 apart for the same model because of what the installer finds behind the old one.

• Sizing. The right size comes from a room-by-room heat-loss calculation (the CSA F280 method the Ontario Building Code points to), not the old furnace’s label. An oversized furnace short-cycles, which wears parts and leaves rooms uneven.
• Venting. A condensing furnace vents through plastic pipe out a side wall or the roof. If a gas water heater shared the old chimney, the chimney may need a liner or the water heater a new vent. Ask whether the quote covers it.
• Condensate. A high-efficiency furnace makes water, so it needs a nearby floor drain or a condensate pump.

Who can install a furnace in Ontario, and do I need a permit?

Only a contractor registered with the Technical Standards and Safety Authority (TSSA) as a fuels contractor, using a certified gas technician, can install a gas furnace in Ontario. In a house, the installation is G2 work (G1 covers every size); a G3 can only do certain tasks under a G2 or G1 holder, and there is no homeowner exception. Ask for the contractor’s TSSA registration number and the technician’s certificate.

Permits depend on the town. The City of Toronto lists replacing a furnace in a house as work that needs no building permit, while installing a new heating system or modifying the existing one needs one, so ask the contractor which applies to your job. Newmarket, Aurora, Markham, Richmond Hill and Vaughan set their own rules, so put in writing who checks and pulls any permit and whether it is in the price. A new electrical circuit needs its own Electrical Safety Authority (ESA) permit.

Should I repair my furnace or replace it?

Replace it when the furnace is about 15 to 20 years old and needs a major part, or when the heat exchanger has cracked. A common rule of thumb multiplies the furnace’s age by the repair price: above about $5,000, get a replacement quote alongside the repair quote. A furnace under about 12 years old with one failed part, such as an igniter or flame sensor, is almost always worth repairing; our furnace repair cost guide prices those parts.

Verify a cracked heat exchanger before you spend $5,000 or more. It is a real carbon monoxide risk, but also the classic upsell. Ask for a photo or camera video of the crack and the combustion readings, and get a second opinion if you are pushed to sign on the spot. Many heat exchangers carry a long manufacturer warranty on the part, so check the furnace’s registration.

Should I buy, rent or lease-to-own a furnace?

Buying costs the most up front and usually the least over 15 years; renting and lease-to-own spread the cost and bundle repairs, at a higher total. Compare every payment over the term with the cash price plus a yearly tune-up, and decide how much repair risk you want to carry.

For context, $67 a month for 15 years is about $12,000, against $3,500 to $5,000 to buy a basic furnace, though the rental includes repairs and maintenance. Read the buyout schedule and what happens if you sell the house. Since June 6, 2024, Ontario’s Homeowner Protection Act has banned Notices of Security Interest (NOSIs) on title for consumer goods such as furnaces; the contract stands, but it can no longer be registered against your home. And since 2018, a furnace contract signed at your door after an uninvited visit is void.

Is a heat pump better than a new furnace, and what rebates are there?

There is no rebate for a new gas furnace in Ontario in October 2026; the rebates are for heat pumps. The Home Renovation Savings program, delivered by Enbridge Gas and Save on Energy, pays $500 a ton, up to $2,000, for a cold-climate air-source heat pump in a home heated mainly with Enbridge natural gas, or $3,000 for ground source. Homes heated with electricity, oil, propane or wood get $1,250 a ton, up to $7,500, or up to $12,000 for ground source. Pre-approval through a participating contractor is mandatory; an install done before approval does not qualify.

A ducted cold-climate heat pump typically costs about $6,500 to $14,000 installed in Ontario in 2026, depending on capacity and electrical work. In a gas-heated GTA house, the common middle path is a hybrid: a heat pump in place of the central air conditioner, with the furnace kept for the coldest days. If the air conditioner is old too, get a hybrid quote alongside the furnace-only one, and confirm rebate rules on the program site the week you sign.

How much does a furnace inspection cost?

A furnace inspection or tune-up in Ontario usually costs $100 to $300, with $130 to $180 common for a standard visit of about an hour. For an old furnace, it is a low-cost way to learn whether it has years left or a real safety fault. Book it yourself with a TSSA-registered contractor: Enbridge Gas does not inspect furnaces, and a call offering a free furnace inspection is almost always a sales pitch.

Doyo does not sell furnace installation; its heating jobs are Furnace Maintenance, Furnace Repair and AC Maintenance. On Doyo, Furnace Maintenance is $201.25, the full price with Doyo’s fee included, and Furnace Repair is by written quote, so you can get an independent look at the furnace and a repair price before you accept a replacement. Doyo checks the technician’s TSSA gas certificate before they are offered heating work.

How do I compare furnace replacement quotes?

• Get at least two written quotes naming the model number, BTU output and AFUE, so you compare the same thing.
• Check what is included: removal, venting, condensate drain or pump, thermostat, permit, gas and electrical connections, and who registers the warranty.
• Under Ontario’s Consumer Protection Act, 2002, the bill cannot exceed the written estimate by more than 10% unless you agree to the new price.