A new furnace is one of the larger purchases most Ontario homeowners make. But the total cost is not just the equipment - it includes installation labour, permit fees, gas line work if needed, and disposal of the old unit. This guide breaks down every component of the cost and shows how Ontario rebates can reduce your out-of-pocket expense.
New Furnace Cost in Ontario: Quick Summary
| Furnace Type | Efficiency | Installed Price Range | Best For |
|---|---|---|---|
| Single-stage gas furnace | 80% AFUE | $2,800 - $4,200 | Budget-conscious replacement; cottages or rentals |
| Two-stage gas furnace | 96% AFUE | $3,800 - $5,500 | Most GTA detached homes; best value for efficiency |
| Variable-speed modulating furnace | 98% AFUE | $5,500 - $8,000 | Larger homes; maximum comfort and lowest gas bills |
| Hybrid heat pump system | Up to 300% COP | $7,500 - $13,000 | Heat pump + furnace; up to $7,500 in rebates |
What Is Included in the Installed Price?
When EcoFrost provides a furnace installation quote, the price includes everything needed for a complete, code-compliant installation:
- Equipment (furnace unit)
- Installation labour (typically 4-6 hours)
- Removal and disposal of the old furnace
- New PVC flue piping (high-efficiency furnaces require a sealed combustion vent, not the old metal chimney flue)
- Condensate drain line (96%+ AFUE furnaces produce condensation)
- City or municipal permit and TSSA inspection
- Startup, commissioning, and thermostat calibration
Cost Breakdown by Component
| Component | Typical Cost Range |
|---|---|
| Furnace equipment (80% AFUE) | $1,000 - $1,800 |
| Furnace equipment (96% AFUE two-stage) | $1,600 - $2,800 |
| Furnace equipment (98% AFUE modulating) | $2,500 - $4,500 |
| Installation labour | $800 - $1,500 |
| New PVC exhaust and intake venting | $200 - $500 |
| Condensate drain (if not existing) | $100 - $250 |
| Permit and TSSA inspection | $150 - $350 |
| Thermostat upgrade (optional) | $150 - $450 |
| Old furnace disposal | Included or $75 - $150 |
Furnace Rebates Available in Ontario (2026)
Ontario homeowners replacing an older furnace can access rebates that reduce the total cost significantly:
- Enbridge HER+ (closed Dec 31 2025): up to $1,000 for gas furnaces with 97%+ AFUE. Requires a pre and post-installation EnerGuide evaluation for full amounts. Partial rebates available without evaluation for qualifying equipment.
- Canada Greener Homes Affordability Program: available for lower-income households replacing older heating equipment. Rebate amounts vary by income bracket and equipment type.
- Hybrid heat pump upgrade: combining a new gas furnace with an air-source heat pump qualifies for up to $7,500 in combined rebates (Enbridge + Canada Greener Homes). This is currently the best rebate opportunity for Ontario homeowners.
- Manufacturer rebates: Lennox, Carrier, and Goodman periodically offer rebates of $200-$500 on specific models. EcoFrost notifies clients of active manufacturer promotions at time of quote.
What Factors Affect the Final Price?
Home Size and Heating Load
A properly sized furnace requires a Manual J heat load calculation. Larger homes need more BTU output, which typically means larger and more expensive equipment. An oversized furnace wastes money and short cycles; an undersized furnace cannot heat the home adequately.
Existing Venting Configuration
High-efficiency (96%+ AFUE) furnaces cannot use the existing metal chimney flue from a mid-efficiency unit. New PVC exhaust and intake pipes must be run to the exterior. Homes with difficult vent runs (long distances, multiple bends) have higher installation costs.
Gas Line Work
If upgrading from electric heat or if the existing gas line is undersized for a higher-BTU unit, a plumber or gas fitter must upgrade the gas line. This adds $200-$600 to the project.
Furnace Brand and Warranty
EcoFrost is an authorized Lennox dealer and recommends Lennox for Ontario climates. Lennox, Carrier, and Trane are premium-tier brands with better warranty support and longer parts availability. Goodman and Amana offer lower equipment costs with shorter parts pipelines.
Adding a Humidifier or Air Cleaner
Many homeowners upgrade to a whole-home bypass humidifier ($400-$800 installed) or HEPA-type air cleaner ($600-$1,200 installed) at furnace replacement time. This is the most cost-effective time to add these accessories since the system is already open.
How to Get an Accurate Furnace Quote in Ontario
An accurate quote requires an in-home visit to measure your home, assess your existing ductwork, and identify any code upgrades required. Avoid contractors who quote furnaces over the phone without seeing your home - the final invoice almost always comes in higher than the phone estimate.
Ready to take the next step?
Get a Free In-Home Furnace Quote?Frequently Asked Questions
What is the best furnace brand for Ontario?
How long does furnace installation take?
Can I get financing for a new furnace in Ontario?
Do I need a permit to replace a furnace in Ontario?
Is an 80% or 96% AFUE furnace worth the upgrade?
What is the best furnace for Ontario winters?
Are there grants or rebates for a new furnace in Ontario in 2026?
Can I install my own furnace in Ontario?
How many square feet will an 80,000 BTU gas furnace heat?
How much should labour cost to install a furnace?
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