Furnace Replacement Cost In Canada: A Detailed Guide

Furnace Replacement Cost in Canada: a Detailed Guide

As an increasing number of people are staying home, the importance of home repairs and improvements has grown significantly for Canadians. Among these projects, furnace replacement stands out as a crucial endeavor that can greatly enhance your comfort, particularly during the unforgiving winter season. To ensure you allocate the necessary funds for this undertaking, refer to this definitive guide on furnace replacement costs in Canada.

What Is The Average Furnace Replacement Cost In Canada?

The average cost for a furnace replacement in Canada is $3,500 to $5,000. This cost estimate includes the replacement unit and the labor costs.
  • Average Cost: $3,500: The average cost of a high-efficiency furnace unit in Canada is $3,500. This cost factors in the installation by an insured HVAC Installation Company in Hamilton, ON.
  • Higher than Average Cost: $5,500: This cost exceeds the usual price for furnace replacements in Canada and typically applies to higher-end units or those requiring the complex installation of premium furnace brands.
  • Lower than Average Cost: 2,500: On the other hand, this refers to prices below the market rate. While purchasing furnace replacements at a lower cost may seem appealing, it’s crucial to exercise caution as these affordable models may contain low-quality components. The initial savings could be offset by higher maintenance costs or the need for frequent replacement, resulting in higher overall expenses over time.
As you will discover later, several factors influence the cost of Furnace Replacement in Hamilton, ON. Therefore, you should look at this guide as a general guideline only. You’ll want to get a quote from a reliable HVAC company for a better idea of your costs.

Factors Affecting Furnace Replacement Cost In Canada

Buying a new furnace in Canada can be overwhelming. Aside from the potential costs involved, there are many other factors to consider. These factors will help determine how much you should pay for your replacement unit:
Brand or Manufacturer

You have several options for brands and manufacturers of furnaces in Canada. Some of the top brands are Goodman, York, Armstrong, KeepRite, Heil, Daikin, Bryant, Luxaire, and Coleman. The brand selection might vary from one HVAC contractor to another. If you have any specific preference for the brand, talk to your contractor about it.

Depending on which brand you choose, the price range starts at $3,000 to $7,500+ for the premium brands.

Efficiency AFUE

The Annual Fuel Utilization Efficiency rating is one of the most important considerations when buying a new furnace in Canada. Choose high-efficiency models because they perform better in the long run. While the initial cost of the higher-efficiency models is higher, it will translate to more savings in the long run.

A higher-efficiency furnace model uses less energy to run, lowering your energy bill. Experts estimate up to 5% energy savings per year.

Size and BTU Output

The unit’s size is also essential when pricing the installation. Before you can decide on what size of the unit to install, you need to consider other factors, such as the size of your home, the layout of your home, the insulation in your home, and the climate where you live.

A small house with no more than 2,000 square feet in size requires a unit with a BTU output of 40,000 to 60,000. The average cost of a furnace replacement of this size is $3,250 to $3,500. A larger home with more than 3,500 square feet requires a BTU output of 80,000-10,000. The average cost for this unit size is $3,750 to $4,000.


The cost of furnace replacement can vary depending on your location in Canada. For instance, high-efficiency furnace models typically range from $3,500 to $5,500. This price difference is influenced by regional variations.

In rural areas, fewer HVAC companies generally provide furnace replacement and installation services. As a result, there is less competition in these regions. Additionally, rural areas in Canada have low population densities, which further reduces the incentive for companies to establish services in these areas.

Transporting furnace materials to rural locations adds to the overall replacement cost. Similarly, labor costs for installation and servicing are higher in rural areas due to the increased effort and time required.

On the other hand, furnace replacement costs in urban areas like Toronto and Vancouver tend to be more competitive. The greater number of HVAC contractors in these cities leads to increased competition and a willingness to offer competitive prices. However, when comparing prices, it’s important to consider factors beyond just the upfront cost of the furnace replacement. Additional factors such as warranties, labor, and after-sales support can impact the overall cost.

Safety Codes and Regulations

HVAC contractors must adhere to existing codes and regulations in Canada. Some installations will require a more complex process than others, which could influence the cost estimate for the job. Make sure to choose a reputable HVAC company that can perform comprehensive furnace services in Hamilton, ON.

When to Replace Your Furnace?

A furnace replacement is a complex process that entails considerable cost. Consult with an HVAC expert before replacing your furnace to determine if you need a new one or if furnace repairs in Hamilton, ON are all you require.

You know when it’s time for a new furnace if any of the following applies to your unit:

  • If your unit is more than a decade old
  • If your furnace needs frequent repairs
  • If your energy bill is high
  • If your furnace is making unusual noises
  • If your furnace is ineffective at regulating indoor temperature

Do not delay furnace replacement. You might think you are saving money by delaying, but it could cost you more in the long run.

In addition, beware of deals that sound too good to be true. The pricing guideline above can be used when shopping around for a new furnace replacement. If you want to save, look for deals and promotions from qualified contractors. Do not settle for lower-end models that are not as efficient and will cost you more.