+1(855) 475-2498
+18554752498

What Affects Furnace Prices in Ontario? Full Cost Breakdown Guide

What Affects Furnace Prices in Ontario? A Complete Overview

Most homeowners in Ontario typically want to know what impacts furnace prices when deciding to upgrade their heating system or replace an existing one, or why furnace installation costs can vary so significantly. Many factors impact the final cost, including the quality of the equipment and the complexity of the installation. In this article, we will look at the main factors that impact furnace installation costs, look at some of the most commonly raised replacement factors, and look at a high-level view of the overall Ontario furnace install cost breakdown, giving you clarity and confidence to make an informed decision.

When considering options, check out the different models and the furnace price in Ontario, to better frame the ranges of each equipment.

Factors Affecting Furnace Installation Cost in Ontario

Numerous factors can influence how much you will be charged for installing a furnace. Some of these factors tend to be equipment-related, while others derive from labour, home layout, and building codes and regulations.

a. Efficiency Rating (AFUE)

Higher efficiency furnaces tend to have a higher initial cost but will save you more money over time. Most homeowners in Ontario decide to invest in 92% – 98% efficient furnaces to help with high heating bills during the winter months.

Higher efficiency = higher initial cost

OR

Lower efficiency = lower initial cost (but higher energy bills in the long term)

b. Furnace Size and Heating Capacity

The size (BTU rating) of the furnace required for your home is determined by the square footage of your home, its level of insulation, the layout of your home, and the age of the home. An oversized or undersized furnace will negatively affect the efficiency and lifespan of your system. Proper sizing, through load calculation, also means that the more BTUs your home requires, the higher your price will ultimately be.

c. Brand and Build Quality

Generally, premium brands may cost more to purchase upfront, but you will receive:

  • Better warranties
  • Quieter operation
  • Increased durability
  • Lower frequency of repairs

Brand selection is still one of the most impactful factors in furnace installation pricing in Ontario.

2. Factors Affecting the Cost of a Furnace Replacement

If a furnace is being replaced nearly a decade or longer, as opposed to installing a furnace in an entirely new construction, other cost factors apply.

a. Remove Old Furnace

Disposing of the old furnace, labour, and safety handling add to the cost. Older oil furnaces may need cleaning and decommissioning.

b. Upgrading to Modern Codes

In today’s construction practices and Ontario’s safety and energy codes, the following will often require you to update your home and furnace:

  • New gas lines
  • Venting upgrades
  • Electrical upgrades
  • Condensate pumps or drains

These upgrades greatly factor into the costs of furnace replacement.

c. Duct Modifications:

If your existing ductwork is “out of date” or “incompatible”, the installer may increase the size or make repairs to ensure the best airflow. This would then add additional labour and materials to the cost as well.

3. Breakdown of Furnace Installation Costs in Ontario

Generally speaking, this provides a window into the distribution of costs in Ontario (ranges will vary based on home and brand):

 

Cost ElementApproximate Impact
Furnace Unit40% – 60%
Labour / Installation25% – 40%
Venting & Gas Lines10% – 20%
Permits & Safety Accessories3% – 10%
Additional Accessories (thermostats, filters)2% – 10%

Understanding this helps us understand why different HVAC companies quoted different figures.

4. What Accounts for a Higher Price for Furnace Installation?

These are the biggest factors that contribute to the price of furnace installation:

a. Home Design and Accessibility

Limited space, tight mechanical rooms, or complex piping due to available space in the basement may require more time, and the relative cost of labor, to install

b. Energy Source (Gas, Electric, or Propane)

The majority of furnace systems in Ontario would be natural gas. Natural gas systems are preferred due to their efficiency-to-cost ratio over electric or propane systems. Propane systems require tanks and additional lines, and electric is a more affordable upfront cost, but its use is more expensive.

c. Additional Components of the System

There are more modern heating systems that have supplementary components that typically require upgrading besides the new furnace, including:

  • Smart thermostats
  • Air filtration systems
  • Humidification systems
  • High efficiency/quality air filters

These options can increase the invoiced price system.

5. Costs for Furnace Installation: What You Can Expect in Ontario

An average cost of furnace installation in Ontario is generally as follows:

  • Basic installation: for low-efficiency units with simple add-ons
  • Mid-range installation: for a high-efficiency furnace with fairly significant upgrades
  • Premium installation: for a high-efficiency furnace, significant ductwork, and/or complex home comfort add-ons

As always, the cheapest option may not be the best. Quality installation affects long-term efficiency, performance, safety, and long-term repair costs.

6. How to Select the Right Furnace for Your Ontario Home

To make the best investment, you should consider:

Energy efficiency

Better energy efficiency, measured in AFUE, means you could save more on heating costs in the long run.

Proper sizing by a certified technician

Don’t pay for more heating efficiency than you need due to using a smaller or larger-than-needed system.

Warranty and service guarantees

Quality manufacturers and installers will provide you with warranty options over several years so you know your investment is protected.

Total cost to install, not just for the furnace

The biggest benefit of proper, quality installation is the fact that it will determine the efficiency and longevity of your furnace, not just the cost of the furnace unit itself.

 

Conclusion 

In Ontario, furnace prices are very different due to both equipment choices, labour, house design, and necessary upgrades. Understanding the key factors behind furnace installation costs and furnace replacement costs can help you select the right system for your home with confidence. When comparing quotes, always review the Ontario furnace instal cost breakdown and look at long-term efficiency and dependability instead of just the lowest upfront cost.

You can compare models and get a better idea of the furnace price in Ontario by checking available options here:

FAQs

Answers to Common Questions About Your Heating, Cooling, and Indoor Air Quality Systems

The furnace brand, efficiency rating, and any required upgrades to your home (like duct or venting modifications) are generally the biggest contributors to the final costs.

Yes. High-efficiency units often require specialized venting and sometimes auxiliary drainage, which drives up both equipment and labour expenses.

Typically, it takes between 4-8 hours to install the average furnace, but this will vary depending on the complexity of the system and home layout. 

Great question! Often, yes! Many HVAC companies may offer discounted deals on installations during the spring or early summer versus the normal price in peak season. 

Yes, indeed. Generally, premium brands will last longer, will not operate as loudly, and will have fewer repairs during the warranty period, which will impact long-term value and savings.

So, is furnace maintenance worth it? Without a doubt. Regular upkeep not only saves you money but also guarantees comfort and safety during Ontario’s coldest months.

Whether you need a quick inspection or a complete furnace repair Toronto service, HVAC Trust has you covered.

Stay warm, stay safe, and give your furnace the care it deserves because prevention is always better than repair.

Select more than one item for comparison.