2025 Homestars Winner Best of Best 2025 Homestars Winner Best of Award
HVAC expert | Published: September 12, 2024 Update on: December 30, 2024

What Is the Cost of Installing a Furnace in Ontario? a Comprehensive Guide for Homeowners

More on:

Summarize this post with

In Ontario, the average cost of furnace installation ranges between $3,500 and $7,500 for a new furnace installation depending on factors such as the furnace size, brand, and energy efficiency, with high-efficiency models potentially exceeding $9,000. Your final cost depends on several key factors, including your home’s size, the furnace’s BTU output, and the complexity of installation. Premium brands like Lennox and Carrier cost more upfront but offer superior energy efficiency and warranties, while mid-range options like Goodman provide reliable performance at lower prices. When calculating your budget, you’ll need to factor in permit fees, potential ductwork modifications, and labour costs. Understanding these cost components will help you make a more informed investment decision.

Furnace Installation Costs in Ontario: Brand, Size, and Efficiency Factors

Whether you’re installing a new furnace or considering a furnace replacement in Ontario, understanding cost factors is crucial. Costs typically range from $3,500 to $7,500, but premium furnace models with advanced features may push this price higher.

Important factors include the furnace’s BTU capacity, efficiency rating, and additional installation needs such as ductwork modifications, permit fees or venting upgrades.

How Much Does Furnace Installation Typically Cost?

Canadian bills stacked with coal pieces, symbolizing the cost range of furnace installation in Ontario, from $3,500 to $7,500.

The average cost of furnace installation in Ontario typically ranges from $3,500 to $7,500, with new high-efficiency furnaces pushing the price up to $9,000 or more.

Your final cost will depend on several key factors, including the furnace’s efficiency rating, brand, and size requirements for your home.

Basic models with 80% AFUE ratings start at the lower end of the price range, while premium units offering 95-98% efficiency fall into the higher bracket.

Installation costs also vary based on the complexity of your existing setup, whether you need new ductwork, and if any electrical upgrades are required.

At ALP Heating, we’ll help you find the right balance between upfront costs and long-term energy savings, ensuring you get the most value from your investment.

Cold Air from Your Furnace?

Our expert furnace repair gets the job done right, fast.

Book Your Repair Today

Comparing Furnace Costs by Brand: Lennox, Carrier, Goodman, and More

Different furnace brands come with distinct price points and feature sets that can greatly impact your total installation costs. When you’re shopping for a new furnace, you’ll find that premium brands like Lennox and Carrier typically command higher prices but often offer superior energy efficiency and longer warranties.

Budget-friendly brands like Goodman provide reliable performance at lower price points, ranging from $2,800 to $4,800. Selecting the right brand depends on your budget, heating needs, and long-term goals.

BrandEntry-Level CostPremium Model Cost
Lennox$3,500$6,500
Carrier$3,200$6,000
Goodman$2,800$4,800
York$2,900$5,200
Trane$3,300$6,200

How Furnace Size and BTU Output Impact Installation Costs in Ontario

The cost of a new furnace in Ontario is heavily influenced by its BTU output and size directly impacts both installation costs and long-term efficiency in Ontario homes.

For a typical 1,500-square-foot house, you’ll need a furnace with 45,000 to 72,000 BTUs, costing between $3,500 and $5,000 installed. The larger your home, the more BTUs you’ll require.

A 2,000 to 2,500-square-foot home generally requires 80,000 to 100,000 BTUs, with installation costs ranging from $4,500 to $6,500.

When selecting your furnace size, consider factors like ceiling height, insulation quality, and local climate conditions. Choosing the right BTU output is essential, as an oversized unit will cycle too frequently, while an undersized one won’t adequately heat your space.

Labour Costs for Furnace Installation: What to Expect

Labour costs for furnace installation in Ontario typically vary in urban areas, such as the GTA, and slightly less in rural regions. Additional costs may include permit fees and ductwork adjustments, particularly if you’re upgrading to a high-efficiency furnace.

Our TSSA-licensed technicians will provide a detailed breakdown of all installation costs during your initial consultation, ensuring you understand exactly what you’re paying for.

Request a Quote or by Phone

Call us today at (647) 972-8714 or request a quote online today!

Request a Quote

Additional Expenses to Consider During Installation

Installing a new furnace involves more than just the unit and basic labour costs.

You’ll need to take into account potential expenses for permits, which are required by most Ontario municipalities for HVAC installations. Additionally, you might need ductwork modifications or repairs to accommodate your new system.

Some homes may require electrical upgrades to support a new furnace, especially when switching from an older model to a more advanced unit.

You’ll also want to factor in the cost of removing and disposing of your old furnace, as well as any necessary venting system updates to meet current safety codes.

If you’re planning a furnace installation, it’s wise to budget for a carbon monoxide detector, thermostat replacement, and possible condensate pump installation.

These additional components guarantee your new heating system operates safely and efficiently.

Key Factors Affecting Furnace Installation Costs

When you’re planning to install a new furnace in Ontario, several key factors will influence your total installation costs, including your home’s size and layout complexity.

Your home’s square footage directly impacts the size of the furnace you’ll need, with larger spaces requiring more powerful units that come with higher price tags. Experts recommend using 30 BTUs per square foot when calculating your furnace requirements.

The installation complexity, combined with regional pricing variations and labour costs across Ontario, can greatly affect your final investment in a new heating system. Gas furnaces typically range from CAD 2,500 to CAD 5,500 for a complete installation package.

How Home Size and Layout Impact Installation Complexity

The size and layout of your home play a significant role in determining furnace installation costs. Larger homes require more powerful furnaces, which typically come with higher price tags, while complex layouts may necessitate additional ductwork modifications or special installation considerations.

Home Size (sq ft)Installation Complexity Level
Under 1,000Low to Moderate
1,000 – 2,000Moderate
2,000 – 3,000Moderate to High
3,000+High

Multi-story homes often present unique challenges, as the furnace must effectively distribute heat throughout different levels. Your home’s existing ductwork configuration, accessibility to installation areas, and the location of gas lines can also impact the overall complexity and cost of the installation process. At ALP Heating, we’ll assess your home’s specific requirements to provide an accurate installation quote.

Selecting the Right Furnace Size for Your Home

To guarantee accurate sizing, you’ll need a professional load calculation that considers your home’s specific characteristics, including ceiling height, air leakage, and local weather patterns.

This precision helps prevent inefficient operations and unnecessary expenses. Having an oversized furnace can result in short cycling and wasted energy.

Industry experts recommend using 30-45 BTUs per square foot of living space for homes in colder climates like Ontario.

Understanding Furnace Efficiency and Its Effect on Costs

Furnace efficiency ratings play an essential role in determining both your initial installation costs and long-term operating expenses.

Modern furnaces are rated by their Annual Fuel Utilization Efficiency (AFUE), which ranges from 80% to 98%. While high-efficiency furnaces (95-98% AFUE) cost more upfront, they’ll save you considerably on monthly energy bills over time.

In Ontario’s climate, investing in a high-efficiency furnace often makes financial sense, especially if you’re planning to stay in your home long-term.

A 96% AFUE furnace, for instance, wastes only 4% of the fuel it consumes, compared to a 20% waste rate in an 80% AFUE model.

You’ll need to balance the higher initial investment against potential energy savings, considering factors like local fuel costs and your home’s heating demands.

Labour Costs and Regional Pricing Variations in Ontario

Several key factors influence labour costs for furnace installation across Ontario, with significant variations between urban centers like the GTA and rural areas.

In major cities, you’ll typically pay between $1,000 to $1,500 for professional installation labour, while rural areas might see lower rates due to reduced overhead costs.

Installation complexity plays a vital role in determining your final labour costs. If you’re replacing an existing furnace with a similar model, you’ll likely pay less than if you need new ductwork or electrical upgrades.

Your home’s layout and accessibility to the installation area can also impact labour charges, as difficult-to-reach spaces require more time and effort.

At ALP Heating, we offer competitive labour rates across the GTA, ensuring transparent pricing and professional installation by our TSSA-licensed technicians.

Advantages of Installing a New Furnace

Installing a new furnace offers significant benefits that you’ll notice immediately in your home’s comfort and monthly utility bills.

You’ll appreciate the enhanced energy efficiency of modern furnaces, which can reduce your environmental impact while providing more consistent heating throughout your living spaces.

Your family will also benefit from improved indoor air quality thanks to advanced filtration systems and better temperature control, making your investment worthwhile for both comfort and health reasons.

Energy Savings and Long-term Financial Benefits

One of the most compelling reasons to upgrade your old furnace is the substantial energy savings you’ll enjoy over time.

Modern high-efficiency furnaces can operate at up to 98% efficiency, compared to older models that typically run at 60-70% efficiency, resulting in significant reductions in your monthly heating bills.

These energy savings can translate into thousands of dollars over the furnace’s lifespan, helping to offset your initial investment.

You’ll notice the difference immediately on your utility bills, especially during Ontario’s cold winter months.

Additionally, newer furnaces maintain more consistent temperatures throughout your home, which means your system won’t need to work as hard to keep you comfortable.

With current energy prices continuing to rise, investing in an energy-efficient furnace isn’t just good for the environment—it’s a smart financial decision for your future.

Improved Efficiency and Reduced Environmental Impact

Beyond the financial advantages, modern furnaces have a significant positive impact on the environment.

Today’s high-efficiency units convert up to 98% of fuel into heat, dramatically reducing waste and greenhouse gas emissions compared to older models that typically operate at 70-80% efficiency.

When you upgrade to a new furnace, you’ll notice improved air quality in your home as modern units feature advanced filtration systems that remove more airborne particles and pollutants.

These systems also distribute heat more evenly throughout your home, eliminating cold spots and reducing the need to overheat certain areas.

At ALP Heating, we can help you select an ENERGY STAR certified furnace that meets your environmental goals while maintaining maximum comfort.

Our TSSA-licensed technicians will guarantee your new system operates at peak efficiency, maximizing both environmental benefits and performance.

Enhanced Comfort and Indoor Air Quality

Modern furnaces bring remarkable improvements to your home’s comfort level and air quality.

With advanced air filtration systems and precise temperature control, you’ll notice a significant reduction in dust, allergens, and airborne particles throughout your living spaces.

Today’s furnaces also maintain more consistent temperatures from room to room, eliminating those uncomfortable hot and cold spots.

You’ll appreciate the enhanced humidity control features that come with newer furnace models, helping you maintain ideal moisture levels during Ontario’s dry winter months.

The improved air circulation guarantees that fresh, filtered air reaches every corner of your home, while advanced fan motors operate more quietly than older units.

If you’re concerned about your home’s air quality and comfort, upgrading to a new furnace can make a noticeable difference in your daily living experience.

How to Choose the Right HVAC Contractor for Furnace Installation

When choosing an HVAC contractor for your furnace installation, you’ll want to verify their licensing and certification to guarantee they meet Ontario’s safety standards and regulations.

It’s crucial to get multiple quotes from different contractors, allowing you to compare prices, warranties, and installation timelines while understanding the full scope of services offered.

You should also check references, read online reviews, and look for contractors with proven track records of successful installations, such as those with high ratings on platforms like HomeStars or Google Reviews.

Cold Air from Your Furnace?

Our expert furnace repair gets the job done right, fast.

Call Now: (647) 972-8714

Ensuring Licensing and Certification for Quality Work

Checking a contractor’s licensing and certification status should be your top priority when selecting an HVAC professional for furnace installation.

In Ontario, HVAC contractors must be TSSA-licensed to legally perform furnace installations and repairs, ensuring they meet strict safety and professional standards.

When evaluating potential contractors, don’t hesitate to ask for proof of their licensing and certifications.

Reputable companies, like ALP Heating, employ TSSA-licensed professionals who undergo regular training to stay current with industry standards and safety protocols.

You’ll want to verify that your chosen contractor maintains proper insurance coverage and follows local building codes.

Why Comparing Multiple Quotes and Checking References Matters

Getting at least three detailed quotes from different HVAC contractors helps you make an informed decision about your furnace installation investment.

When comparing quotes, make certain each one includes equipment specifications, labour costs, warranty details, and estimated completion time. This allows you to evaluate value rather than just price.

Don’t hesitate to ask contractors for references from recent furnace installations, and take time to verify these references. You can also check online reviews and ratings on platforms like HomeStars, where reputable companies like ALP Heating maintain strong reputations with numerous five-star reviews.

When speaking with references, ask about the contractor’s punctuality, professionalism, cleanliness, and whether the final cost matched the initial quote. This due diligence helps guarantee you’re choosing a reliable contractor who’ll deliver quality work.

Final Thoughts on Furnace Installation Costs in Ontario

While investing in a new furnace requires careful financial planning, you’ll find the long-term savings in energy costs and reduced repairs often justify the initial expense.

When weighing your options, consider factors like improved comfort, increased home value, and potential rebates that can offset your investment.

Before moving forward with your installation, take time to research common pitfalls such as choosing an unqualified contractor or selecting an improperly sized unit, as these mistakes can lead to higher costs and reduced efficiency.

Weighing Costs Against Benefits: Is a New Furnace Worth It?

Making a decision about furnace replacement isn’t just about the upfront costs – it’s about long-term value and peace of mind.

When you consider the improved energy efficiency, lower utility bills, and increased home comfort that a new furnace provides, the investment often pays for itself over time.

A new furnace will typically reduce your monthly heating costs by 15-30%, while also providing more consistent heating throughout your home.

You’ll also benefit from enhanced safety features, quieter operation, and fewer repair needs in the coming years.

At ALP Heating, we’ve seen countless homeowners experience significant savings and improved comfort after upgrading their outdated furnaces.

To explore your furnace installation options and get a detailed quote, contact our TSSA-licensed professionals at (647) 972-8714.

Common Mistakes to Avoid When Planning Your Installation

Homeowners frequently make costly mistakes when planning their furnace installations, but these pitfalls can be easily avoided with proper guidance.

Don’t rush into choosing the cheapest option, as low-quality installations often lead to higher long-term costs and reduced efficiency. Instead, focus on selecting a reputable HVAC company with proper licensing and positive reviews.

Another common error is failing to evaluate your home’s specific heating requirements. Your furnace’s size and capacity should match your space perfectly, as an oversized or undersized unit won’t perform efficiently.

Additionally, don’t overlook the importance of proper ductwork inspection and preparation before installation.

At ALP Heating, our TSSA-licensed professionals can help you avoid these mistakes while ensuring your new furnace installation meets all safety and efficiency standards.

Frequently Asked Questions

Are There Any Government Rebates for Furnace Installation in Ontario?

Yes, the Canadian government and local utilities often provide rebates for upgrading to energy-efficient furnaces. Programs like the Canada Greener Homes Grant can help offset the cost of a high-efficiency furnace by up to $5,000. Check with your local HVAC contractor for current offers.

 

How Can I Save Money on Furnace Installation in Ontario?

To save money on furnace installation, consider:

  • Choosing a mid-range furnace brand like Goodman or York for reliable performance at a lower cost.
  • Timing your purchase during seasonal promotions or taking advantage of government rebates.
  • Ensuring your contractor is licensed and experienced to avoid costly errors.
    ALP Heating offers competitive rates and expert advice to help you find the best value for your investment.
What Permits Are Required for Furnace Installation in Ontario?

In Ontario, a Technical Standards and Safety Authority (TSSA) gas permit is required for all furnace installations. Your licensed HVAC contractor must obtain this permit before starting the work to ensure safety and compliance with local regulations. ALP Heating handles all necessary permits for a hassle-free installation process.

Are High-Efficiency Furnaces Worth the Extra Cost?

Yes, high-efficiency furnaces, with AFUE ratings of 95-98%, are worth the extra cost for most Ontario homeowners. While their upfront price is higher, they provide significant savings on energy bills and reduce your environmental impact. Over their lifespan, the cost savings often outweigh the initial investment. ALP Heating can help you decide if a high-efficiency furnace is the right choice for your home.

Can I Finance My Furnace Installation?

Many HVAC companies, including ALP Heating, offer financing options for furnace installations. This allows you to spread the cost into manageable monthly payments. Financing terms vary, so ask about interest rates and eligibility requirements during your consultation.

Need Help?

Your Local Furnace Installation Experts

No heat? Strange smells? Pilot light keeps going out?
Our licensed furnace technicians handle repairs and new installations across the Greater Toronto Area, including gas, electric, and high-efficiency models.

Don’t see your city listed?
We may still serve your area call us now to confirm your location.

Call: (647) 972-8714

Learn more about Furnaces

Image capturing a residential furnace emitting a loud and disruptive noise. The photo aims to visually convey the issue of noisy furnaces, exploring potential causes and solutions to help homeowners address and rectify this disruptive problem.
Published: January 1, 2025
Updated: November 21, 2025
Read more
lose-up of a furnace inducer motor with visible wiring and components, showcasing electrical connections and mechanical assembly for troubleshooting.
Published: December 20, 2024
Updated: November 20, 2025
Read more