Furnace prices vary greatly depending on a number of factors, but we can help you narrow down your choices to the options that are best suited to your needs.

Living through cold Ontario winters you know just how essential a great furnace is to the comfort of you and your family in these months. Not only does a furnace regulate your home’s internal temperature, it also enhances your health by preventing the growth of mold and other harmful bacteria, ensures that your pipes don’t freeze or burst, and saves money on your monthly energy bill. A great furnace is really the unsung hero of home comfort during the wintertime. If you’re thinking of upgrading your home’s furnace to a new model, we’re here to help you navigate furnace prices and help you understand what you can expect to pay for a new furnace in Ontario.

Factors That Influence Furnace Prices

Average furnace prices in Ontario range between $3,400-$6,500 installed. When searching for the right furnace for your home, the factors that you should be considering include:

Fuel Type – A furnace can run on either gas, propane, electricity, or solar energy. Prices vary by fuel type so knowing which type is most suitable for your home is essential to choosing the right furnace.

AFUE Rating – A furnace’s AFUE rating, or Annual Fuel Utilization Efficiency, measures how efficiently a furnace converts fuel to heat. The most efficient furnaces have an AFUE rating of 95%+. A high efficiency furnace will have a higher upfront cost, but it saves money over time by lowering the operation cost and as a result lowers your monthly energy bill.

Your Location – Furnace prices will vary by region as large cities benefit from having more HVAC contractors and no additional distribution fees. The general rule of thumb is that living 1h+ from the city increases the price of furnace installation by 20-40%. If you’re 2-3h+ away from the city then you can expect installation prices to increase 50-60% from the standard rate. For an accurate price quote for your area, contact DeMark Home Ontario today and one of our trained HVAC professionals can provide you with a free consultation.

Furnace Model – Of course, the brand and model that you choose will affect the price. Several brands make low or mid-range furnaces such as Goodman, York, KeepRite, Trane and Rheem. There are also premium manufacturer’s such as Amana or Bosch for those interested in top-of-the-line equipment.

Home Size – The size of your home decides the appropriate furnace size for your home. A BTU rating, or British Thermal Unit rating, measures the heat content of fuels or energy sources. Add 30 BTUs for each square food of your home to find the furnace size that your home requires.

Will I receive government rebates for a furnace upgrade in Ontario?

Furnace rebates are one great way to save money on the upfront cost of your new heating system. The Canadian government as well as utility providers like Enbridge and Union Gas offer rebates to homeowners that upgrade their home to eligible heating systems.

The 2023 Canada Greener Homes Grant allows Canadians to receive up to $10,000 for home renovations that increase the energy efficiency levels of their home. Applying for this program can be done directly on the Natural Resources Canada website You can also check out our step-by-step guide on how to apply to the Canada Greener Homes Grant program and get the most out of your home comfort upgrade.

Contact us today and we would be happy to help you choose a brand-new rebate-qualifying heating system for your home. We can walk you through the grant process from start to finish – from booking your energy assessments, to installing the equipment, and finally submitting your documentation for approval. Rebates can vary from $100 to $10,000+ depending on the upgrade.

Expected Cost of a Furnace in Ontario

Now that we have gone over the factors that influence furnace prices, we can get to the specifics and provide you with price estimates depending on the parameters we’ve been discussing.

Fuel Type

Oil and electricity are the cheapest fuel sources out of the options available. Natural gas or propane fueled units are similar in price, with propane options being slightly more expensive as they are typically installed in rural areas. Below is a comprehensive list of furnace price estimates by fuel type (including installation):

Fuel Type	Furnace Cost
Oil	$3,300-$5,500+
Electricity	$3,300-$5,500+
Natural Gas	$3,400–$6,500+
Propane	$5,000–$7,500+

AFUE Rating – Gas Furnaces

The AFUE rating measures the efficiency level of the furnace. The higher the rating, the higher the installation price will be. Below is a comprehensive list of furnace price estimates by AFUE rating (including installation):

Home Size/Furnace BTUs – Gas Furnaces

The size of your home decides the furnace size (BTUs) that is most suitable. Higher BTU furnaces are more expensive to install. Below is a comprehensive list of furnace price estimates by BTU rating (including installation):

Home Size	Furnace BTU	Furnace Cost
<1,400 square feet	40,000 BTU	$3,400–$4,500+
1,400-2,200 square feet	60,000 BTU	$3,600–$4,800+
2,200-2,800 square feet	80,000 BTU	$3,800–$5,500+
2,800-3,300 square feet	100,000 BTU	$4,000–$6,500+

Upgrade your Furnace with No Upfront Cost!

If you’re on the market for a brand-new furnace but are put off by the high upfront cost, furnace rent-to-own or financing options might be the perfect option for you. Furnace rental or financing programs allow you to take advantage of all the benefits of a new furnace without the upfront cost. Our rent-to-own program includes free installation, maintenance, and repairs so that our customers can have total peace of mind. We have a selection of rental and financing options available that can be tailored to meet the needs and budget of any homeowner. Contact us today and our team of HVAC professionals would be happy to help you find the best solution for your home.

With that being said, we hope you now have a much better idea of how much your next home comfort upgrade might cost you. If you are looking to get a price quote on a new furnace for your home or have any other HVAC-related questions, don’t hesitate to contact DeMark Home Ontario today. Home comfort is our priority, and it would be our pleasure to help you find the home heating solution that checks all your boxes. Give us a call at 647-847-2998 or fill out our online request form and we will be happy to assist you with your request.