With a quick search of “cost to replace furnace in Toronto”, you’ll discover a range of answers. On average, homeowners can expect to pay between $3,000 and $5,000 for a new gas furnace with installation. However, this varies depending on factors such as the furnace’s efficiency, brand, size, and the complexity of installation, all important factors that Ideal Heating & Air Conditioning will help you consider.
Click on the links below to get answers to your specific questions or keep reading to get an overview of this topic.
- Cost to Replace Furnace in Toronto
- Factors Affecting the Final Price: Brand and Model
- Factors Affecting the Final Price: Furnace Type
- Factors Affecting the Final Price: Furnace Size and Capacity
- Factors Affecting the Final Price: Installation Complexity
- Factors Affecting the Final Price: Warranties, Location, Additional Features, & Seasonal Demand
The average cost to replace furnace in Toronto is between $3,000 and $5,000 or more.
Breaking Down the Cost To Replace Furnace in Toronto
1. Cost to Replace Furnace in Toronto
The cost to replace a furnace in Toronto varies based on factors such as the furnace’s efficiency, brand, size, and the complexity of installation. That being said, the average homeowner can expect to pay between $3,000 and $5,000 for a new gas furnace, including installation.
Remember, while there are furnaces available for approximately $2,500, it’s important to note that this price typically refers to the furnace unit alone and does not include installation costs. It’s crucial to consider that while the initial cost of the furnace unit is a significant factor, installation costs can vary based on factors such as the complexity of the installation, any necessary modifications to existing ductwork, and local labour rates. With enhanced features or complex installation, the cost of a new furnace can even push $7,000. Therefore, it’s advisable to consult with local HVAC contractors in Toronto to obtain comprehensive quotes that include both the furnace unit and installation services.
For a more precise estimate tailored to your home’s requirements, consider using online tools like the New Furnace Cost Calculator or reach out to an HVAC dealer so they can help you find the best deal for your specific needs. Let’s explore the various factors impacting the final price next.
The cost of your furnace will vary depending on the brand and model of your particular furnace.
Watch the videos and keep reading to learn about how these brands compare.
2. Factors Affecting the Final Price: Brand and Model
Specific brand and model choices are the first factor that will influence the price of your new furnace.
Brand
Premium brands (e.g., Lennox, Trane, Carrier) tend to cost more due to higher energy efficiency, advanced features, and reputation for reliability. Budget-friendly brands on the other hand, like Goodman, are more affordable but may have fewer advanced features. Ideally, we recommend brands like Bryant Furnaces for their balance of quality and affordability.
Model
Specific models with higher energy efficiency (e.g., 95%+ AFUE) or advanced features like variable-speed blowers and smart thermostats will also increase the cost.
Watch the video and learn why Ideal is an authorized Bryant dealer of energy-efficient gas furnaces!
3. Factors Affecting the Final Price: Furnace Type
While most of us think of gas furnaces when we think of furnaces today in Ontario, that’s not always the type of furnace that homeowners install. With that in mind, let’s consider the variety of furnaces someone might choose from, why they might choose them, and the costs involved.
Furnace Types
a) Gas Furnace
Upfront Cost: $2,900–$6,400 (including installation).
Operational Cost: Low (natural gas is inexpensive in Ontario).
Pros:
- Affordable in the long term due to low natural gas prices.
- Widely available in Toronto and Ontario.
- Efficient models can save money over time (e.g., 95%+ AFUE).
Cons:
- Higher initial cost than electric furnaces.
- Requires a natural gas connection.
b) Electric Furnace
Upfront Cost: $2,000–$4,000 (including installation).
Operational Cost: High (electricity is more expensive than natural gas).
Pros:
- Lowest upfront cost.
- Easier to install with no need for gas lines or vents.
- Reliable and requires minimal maintenance.
Cons:
- High operational costs in cold climates like Ontario.
- Best suited for smaller homes or as a backup heating system.
Larger homes, poorly insulated homes, or homes in cold climates require a higher-capacity furnace which are more expensive.
(Image Source: David McElwee)
c) Oil Furnace
Upfront Cost: $3,500–$7,000 (including installation).
Operational Cost: Higher than gas but lower than electric (heating oil fluctuates in price).
Pros:
- A viable option for rural areas without natural gas lines.
Cons:
- Less efficient and more expensive to operate than gas furnaces.
- Requires regular fuel delivery and storage tanks.
- Phasing out in favor of cleaner energy options.
d) Propane Furnace
Upfront Cost: $3,500–$7,500 (including installation).
Operational Cost: Moderate (slightly higher than natural gas).
Pros:
- Good for rural or remote homes where natural gas is unavailable.
Cons:
- Requires a propane tank and fuel delivery.
e) High-Efficiency Furnaces
Upfront Cost: $4,000–$8,000 (including installation).
Operational Cost: Very low due to high efficiency (95–98% AFUE).
Pros:
- Long-term savings on energy bills.
- Rebates may reduce the upfront cost.
Cons:
- Higher upfront cost. ENERGY STAR-rated models with higher AFUE (Annual Fuel Utilization Efficiency) ratings cost more upfront but save on long-term energy bills.
For most Ontario homes, a standard gas furnace is the most affordable and practical option in the long run due to low natural gas costs and availability. And, while higher AFUE ratings and ENERGY STAR® certification are not legally required for furnaces in Ontario, adhering to the province’s minimum efficiency standards is mandatory. Opting for higher-efficiency models can provide long-term cost savings and environmental benefits.
4. Factors Affecting the Final Price: Furnace Size and Capacity
A furnace’s rating is measured in BTUs (British Thermal Units). What is BTU you ask? BTU is a unit of measurement for energy. In heating systems like furnaces, the BTU rating measures the amount of heat the furnace can produce in one hour. For example, a furnace rated at 60,000 BTUs can produce enough heat to warm 60,000 BTUs worth of air in an hour.
Home Size
The size of your home and its insulation determine the required BTU rating. A small home (e.g., 1,000 sq. ft.) may need a furnace with a rating of 40,000–60,000 BTUs, while a larger home (e.g., 2,500 sq. ft.) might need a 100,000 BTU furnace or higher. As a result, larger homes or poorly insulated ones will require a higher-capacity furnace, which increases the cost.
Climate
Also, in colder climates like Ontario, you need more heating power (higher BTU rating) than in milder regions. This is why furnace BTU ratings are often sized to match the “heating degree days” of the area.
Overall, higher BTU ratings mean bigger, more powerful units, which are more expensive to manufacture.
Complicated installations that involve repair, resizing, or replacement of ductwork will usually increase the overall cost of replacing your furnace.
5. Factors Affecting the Final Price: Installation Complexity
As we said, you can get a furnace for under $3,000; however, that usually doesn’t involve installation. The cost of your furnace installation increases if there are any challenges or complexities such as the following:
- Ductwork Modifications: If the current duct system needs repair, resizing, or replacement, it will add to the cost.
- Ventilation Requirements: Installing proper ventilation or upgrading to meet safety standards can increase the expense.
- Accessibility: If the furnace is in a tight space or hard-to-access location (e.g., a basement or crawl space), labour costs will rise.
- Removal of Old Furnace: Proper disposal of the old unit is typically included but can add a small extra fee.
Make sure to book an appointment so that your HVAC technician can inspect your home and accurately provide you with a quote about the cost to replace furnace in Toronto.
Remember to factor in additional costs like advanced technology, warranties, or seasonal demands.
6. Additional Factors Affecting the Final Price: Warranties, Location, Additional Features, & Seasonal Demand
Do you remember how we mentioned that the cost of replacing a furnace in Toronto can cost up to $7,000 (or more!)? That can be due to the complexity of an installation or other factors like the type of warranty you need, special features you want added on, seasonal demand, and more. Here are some other factors to consider:
Warranties
Make sure you ask about warranties, both from the manufacturer as well as from your dealer. Here’s some basic information to know about warranties.
- Manufacturer Warranty: Premium brands often offer longer warranties (10-20 years) but may charge more for units with extended coverage.
- Labour Warranty: Contractors may offer an additional labour warranty, which can add to the installation cost.
While we can’t provide you with specific warranty information, we do advise you to be informed. Be sure to ask questions about warranties before you purchase your furnace.
Location of the Buyer
Furnace prices may vary slightly depending on supplier competition and local demand in Toronto.
Also, Toronto residents may qualify for government rebates for installing high-efficiency models, which can reduce costs.
Finally, you may have to deal with the cost of permits. Municipal permits for installation are often required, adding to the total price.
Additional Features
With our ever-advancing technology, there are so many additional features you can consider when setting up a new HVAC system in your home. Here are some features to consider, but remember there is of course a price tag on these.
- Smart Thermostats: Many modern furnaces come with or are compatible with smart thermostats, which can increase upfront costs.
- Zoning Systems: Systems that allow different temperature zones in the home may also increase costs.
- Noise Levels: Quieter models typically cost more.
- Humidifiers/Dehumidifiers: Often recommended for better indoor air quality.
- Air Filters or Purifiers: Systems with HEPA filters or UV light add-ons can increase costs.
Ask Ideal about the special features available!
Seasonal Demand
Ideally, you want to avoid replacing a furnace in peak seasons. During the winter (high demand), costs may rise due to contractor availability. Off-season replacements (spring or summer) may offer discounts. If you can afford to be proactive, it often pays off.
As you can see, there is a lot more than just the furnace to consider when counting up the cost. But you’ve taken the right step of researching your options and informing yourself as best you can. Want to know more? Contact Ideal.
When you think of the cost to replace furnace In Toronto, expect the price range to reflect a combination of these factors listed above. A typical gas furnace replacement with installation costs between $3,000–$5,000. However, high-efficiency systems with advanced features or challenging installations can exceed $7,000. To minimize costs, compare quotes from multiple contractors, ask about rebates, and consider off-season installation.
Ready to take the next step? Contact Ideal Heating & Air Conditioning to book an appointment. Our friendly experts will help answer your questions and provide you with a quote. We’ll help inform you of any rebates and make sure you are getting quality products and service at great rates.