How Much Does a Heat Pump Cost in Ontario
Heat pump costs in Ontario in 2026: installed prices by system type ($2,300-$30,000+), Home Renovation Savings rebates, and running costs vs gas.
How Much Does Furnace Replacement Cost in Ontario
Furnace replacement costs in Ontario in 2026: installed price ranges ($4,500–$9,500+), what pushes a quote up, the rebates still open, and how to avoid the door-to-door scam.
Applies in: Ontario
A furnace dies at the worst possible time. It is mid-January, the house is dropping a degree every few hours, and the first quote the contractor gives over the phone is the number you end up signing for because you have no time to compare. In Ontario in 2026, a standard furnace replacement runs $4,500 to $9,500 installed, with simple swaps cheaper and complex installs reaching $12,000. This page exists so you have the numbers before that night.
Every range below is drawn from current 2026 Ontario cost guides and installer pricing, and marked where it comes from. Your home's ductwork, venting, and location move the number within the range; your city, the time of year, and who does the install move it across ranges.
The headline numbers
These are installed-price planning ranges in Canadian dollars, typically quoted before HST, for residential natural gas furnace replacements.
| Furnace tier | Installed range (CAD) | What it usually is |
|---|---|---|
| Entry-level single-stage | $4,500–$6,500 | 95–96% AFUE, single-stage burner, standard blower, straightforward install |
| Mid-range two-stage | $6,500–$8,500 | 96–97% AFUE, two-stage operation, enhanced ECM or variable-speed blower |
| Premium modulating | $8,500–$9,500+ | Higher AFUE, modulating gas valve, advanced variable-speed blower and controls |
| Complex installation | $10,000–$12,000+ | Tier above plus major ductwork, venting, or relocation work |
The category labels are not fixed product grades; manufacturers combine features differently. Match the AFUE rating, staging, and blower type to the actual equipment quoted, not the label.
A straight like-for-like gas furnace swap — same location, same fuel, existing ductwork and venting — typically lands between $4,000 and $7,000 before HST. Enercare's Ontario buyer's guide puts the average high-efficiency gas furnace install at $4,295 to $8,000, including standard installation, the required installation licences, and at least a one-year warranty. Quotes far below that band are a red flag: they usually mean corners cut on workmanship, warranty coverage, or insurance.
The extras that change the quote
Most furnaces are priced as swaps. The work around the swap is where quotes diverge. Typical add-ons, each on top of the base furnace price:
| What changes | Typical added cost (CAD) |
|---|---|
| Switching chimney venting to PVC sidewall venting | +$500 to $1,500 |
| Major ductwork changes | +$1,000 to $3,000 |
| Converting fuel types | +$1,000 to $3,000 |
| Moving the furnace to a new location | +$2,000 to $5,000 |
| Electrical panel upgrade (for electric furnaces or heavy electrical additions) | +$1,500 to $4,000 |
| Emergency winter install | 10 to 20 percent above the planned off-season price |
Spring replacements are consistently the cheapest. Ask for an itemized quote that lists each of these separately, so you can compare installers line by line instead of comparing totals.
If your home heats with oil
Oil furnaces are a minority in Ontario — most homes here heat with natural gas — but they still heat older and rural homes with no gas line, and the replacement question is different from gas in three ways: the running cost, who is allowed to do the work, and where the rebate money points.
What a replacement costs. Ontario-published installed ranges for an oil furnace run about $4,000 to $8,500 before HST. Dynamic Heating & Cooling, a Hamilton installer, publishes $5,500 to $8,500 installed for an oil furnace; an Ottawa guide publishes $4,000 to $7,000 installed and notes oil is mostly found in older homes now. That is roughly what a mid-range gas furnace costs to buy and install — the difference is the fuel bill, which moves with the oil price rather than sitting on a regulated gas rate. The national range of $6,750 to $10,000 in our Canada-wide guide is a national figure, not an Ontario one; Ontario quotes sit below it. Rural installs cost more: the same Ontario installer notes 20 to 40 percent premiums an hour or more from the nearest city, and oil-heated homes are usually the rural ones.
Who can install it. Oil work has its own TSSA ladder, separate from gas: Oil Burner Technician certificates OBT-3 (entry), OBT-2 and OBT-1, required for work under O. Reg. 213/01 (Fuel Oil). An OBT-3 holder cannot do the initial activation of a new appliance — that needs higher certification or supervision. Check the installer's OBT certificate the same way you check a gas technician's G2.
Before you buy another oil furnace, price the switch. Oil-heated homes get the largest heat-pump money in Ontario. The federal Oil to Heat Pump Affordability program, co-delivered in Ontario by the IESO, offers eligible low-to-median-income homeowners a free direct installation of a heat pump system valued at up to $25,000 — up to $15,000 federal plus up to $10,000 provincial — plus a $250 bonus cheque, with the safe removal of the old oil tank covered as an eligible cost. Applications go through IESO's Save on Energy program, not the federal portal. Households outside that program still get Home Renovation Savings' top heat-pump rate for oil-heated homes, up to $7,500, versus up to $2,000 for gas-heated homes. A like-for-like oil swap earns no rebate; the money is all behind the switch.
What the money buys: AFUE, staging, and noise
AFUE (Annual Fuel Utilization Efficiency) is the share of fuel a furnace converts to heat. Entry units in 2026 run 95–96%; premium units reach 97–98%. One Ontario installer's 2026 guide puts the annual gas saving at $300 to $500 for a 96–98% AFUE furnace versus an old 80%-efficiency unit, implying roughly a 5-to-10-year payback with the savings continuing over a 20-plus-year lifespan.
Staging matters for comfort as much as bills. A single-stage furnace is either fully on or fully off; a two-stage unit runs low on mild days and only fires high on the coldest ones; a modulating unit adjusts continuously. Higher staging means fewer cold drafts, steadier temperature, and noticeably less noise. For a small bungalow this is a luxury; for a two-storey family home it is the difference you feel every evening.
Rebates: what is actually open in 2026
The rebate landscape changes constantly, and contractor sites are full of incentives that closed years ago. Here is what is real as of October 2026.
The federal Canada Greener Homes Grant closed to new applicants in February 2024. It is gone, whatever a contractor's website still says.
The Enbridge Home Efficiency Rebate Plus (HER+) program has been shut down entirely.
The active provincial program is Home Renovation Savings (HRS), launched January 2025 and jointly delivered by Save on Energy and Enbridge Gas, funded through at least November 2026. For a gas furnace itself, HRS pays no rebate: the bundled path's $250 figure is for air sealing, not the furnace. That path requires at least two qualifying upgrades plus a pre-installation and a post-installation home energy assessment. A furnace bought on its own earns essentially nothing from the program.
Compare that with heat pumps under the same program: gas-heated homes get $500 per ton of heat-pump capacity up to $2,000, and non-gas homes get up to $7,500. If the furnace is dying and the house could take a heat pump, the rebate math strongly favours looking at one first.
The Canada Greener Homes Loan — up to $40,000 interest-free for eligible retrofits — closed to new applicants on October 1, 2025, so it cannot be counted on for a new furnace. Homeowners with an already-approved loan continue under its own terms.
The federal $2-billion heat-pump rebate announced October 2026 launches for early 2027 with retroactive coverage of fall 2026 purchases; the details are still being finalized.
Confirm current amounts with your installer before signing anything, and never let a promised rebate decide a purchase before the program administrator confirms eligibility in writing.
Rebate and loan status, checked November 4, 2026
Two program facts on this page changed after it was written, and both were re-checked against the programs' own pages on November 4, 2026. The Canada Greener Homes Loan is closed to new applicants: October 1, 2025 was the last day to apply, per Natural Resources Canada's loan page. And Home Renovation Savings pays no rebate for a gas furnace itself: the bundled path's $250 figure is the air-sealing rebate on the program's with-assessment page, which lists no gas-furnace measure. The corrections above replace the earlier wording that presented the loan as still open and the $250 as a furnace rebate.
Who is allowed to install it
Gas furnace installation in Ontario is legally restricted to TSSA-certified gas technicians holding a G2 or G3 certificate. That is not a recommendation; it is the licensing rule, and an unlicensed install can void both the manufacturer warranty and your home insurance if something goes wrong. Ask for the technician's certificate number and check it before work begins. (Our guide on becoming a gas technician in Ontario explains how the G3/G2 ladder works, if you are curious what the credential behind the invoice actually means.)
The scam section: door-to-door furnace sales
This one is Ontario-specific and worth its own section, because the scams are still running.
Since March 1, 2018, unsolicited door-to-door and in-home sales of furnaces have been banned under Ontario's Consumer Protection Act. A business can only enter into a contract in your home if you contacted them first and invited them in.
Contracts signed in the home for these products still carry a 10-day cooling-off period: you can cancel for any reason, no penalty. Contracts signed in violation of the ban are considered void.
The financing trap is now harder to pull off. Before 2024, scam installers registered Notices of Security Interest (NOSIs) against victims' home titles to secure predatory furnace-financing loans. Ontario's Homeowner Protection Act, passed June 2024, banned NOSIs for consumer goods — but the door-to-door crews that pioneered the scheme have not all gone away.
Local utilities, the City of Ottawa, and government agencies do not send salespeople to your door. Anyone claiming otherwise is lying.
If a door-to-door salesperson is at your door right now offering furnace equipment: do not let them inspect anything, do not show them a utility bill, and do not sign anything. The legitimate version of this transaction starts with you calling them.
How to keep the bill down
Replace on your schedule, not the furnace's. A 15-year-old furnace replaced in May is a planned $5,000–$7,000 job. The same furnace dying in February is an emergency $7,000–$9,000 job.
Get three itemized quotes and compare them line by line: unit, labour, venting, permits, old-unit removal, HST. Ask whether the 10-day cooling-off terms and the warranty are in writing before you sign.
Use the bundled path's air-sealing rebate (up to $250) if you are doing other upgrades anyway. It only pays on the bundled path with pre- and post-installation energy assessments, so plan the audit before any work starts — starting work before the pre-retrofit assessment is the number-one reason rebates get rejected.
Price the heat pump alternative before you buy. With HRS paying up to $2,000 toward a heat pump for gas-heated homes versus no rebate for a gas furnace itself, a cold-climate heat pump with your existing furnace as backup often wins on lifetime cost. Our heat pump guide walks through the 2026 rebate picture in detail.
Verify the installer's TSSA certification, and get the installation certificate in writing after the work passes.
Related guides
- How to start getting a cheap heat pump in Canada: the 2026 heat pump rebate picture, including the federal $2-billion announcement — worth reading before you buy a furnace.
- How much does an electrician cost in Ontario: panel upgrades and electrical work often appear as line items on a furnace quote — here are the 2026 Ontario rates.
- How to become a gas technician (G3/G2) in Ontario: the licence behind the furnace installer's invoice — how technicians earn the G3 and G2 certificates.
- How much does it cost to install a furnace in Ontario: the new-build and first-time-install companion — pricing by home size, full ductwork costs, and Enbridge's new gas service rules.
- Furnace replacement cost in Canada: the national picture — how costs change by province and fuel type, and the federal and provincial rebate programs outside Ontario.
Furnace replacement costs in Ontario (2026)
| Entry-level single-stage furnace, installed | $4,500–$6,500 |
|---|---|
| Mid-range two-stage furnace, installed | $6,500–$8,500 |
| Premium modulating furnace, installed | $8,500–$9,500+ |
| Complex installation (ductwork, venting, or relocation) | $10,000–$12,000+ |
| Straight like-for-like gas furnace swap | $4,000–$7,000 |
| Add-on: switching chimney venting to PVC sidewall venting | +$500–$1,500 |
| Add-on: major ductwork changes | +$1,000–$3,000 |
Prices in Canadian dollars, typically quoted before HST. These are installed market ranges drawn from current Ontario cost guides, not quotes. Ductwork, venting, and location move the final number.
Questions people ask
How much does a new furnace cost installed in Ontario in 2026?
For a natural gas furnace installed in Ontario, 2026 market ranges run $4,500 to $6,500 for an entry-level single-stage unit (95–96% AFUE), $6,500 to $8,500 for a mid-range two-stage unit, and $8,500 to $9,500 or more for a premium modulating unit. Complex installations with ductwork or venting changes can reach about $12,000. Prices are typically quoted before HST.
What is a reasonable price for a straight furnace swap in Ontario?
A like-for-like gas furnace swap, where the new unit goes in the same spot with the same venting and ductwork, typically runs $4,000 to $7,000 before HST in Ontario, with Enercare's Ontario buyer's guide putting the average high-efficiency gas furnace install between $4,295 and $8,000. Quotes far below that range are a red flag, not a bargain.
How long does a furnace installation take?
A straightforward replacement of a similar unit in the same location takes 4 to 8 hours and is usually finished in one day. Installations that add fuel conversions, furnace relocation, or major ductwork changes take longer and are where the extra labour charges come from.
Are there rebates for a new gas furnace in Ontario in 2026?
Almost none. The federal Canada Greener Homes Grant closed to new applicants in 2024, and the Enbridge Home Efficiency Rebate Plus (HER+) program has been shut down. The active provincial program is Home Renovation Savings (HRS), and a gas furnace itself earns no rebate: the bundled path's $250 figure is for air sealing, not for the furnace, and the path requires at least two qualifying upgrades and pre- and post-installation energy assessments. The interest-free Canada Greener Homes Loan (up to $40,000) closed to new applicants on October 1, 2025, and can no longer be counted on for a new retrofit.
How much more does an emergency winter furnace install cost?
Expect a 10 to 20 percent premium over a planned off-season replacement, and some contractors charge more for true emergencies. If the furnace is over 15 years old, replacing it on your schedule in spring or fall is almost always cheaper than a no-heat night in February.
Who is allowed to install a gas furnace in Ontario?
Gas furnace installation must be done by a TSSA-certified gas technician holding a G2 or G3 certificate. An unlicensed install can void the manufacturer warranty and create insurance problems. Ask for the technician's certificate number before the work starts.
Should I repair or replace my 15-year-old furnace?
Use the age-times-repair test: multiply the furnace's age in years by the repair estimate, and if the result is over about $5,000, replacement usually costs less over the next five years than repairs plus rising gas bills. Any single repair over $1,500 on a furnace older than 12 years also usually favours replacement, especially a heat-exchanger failure, which costs $2,000-plus to fix on its own.
Can a door-to-door salesperson sell me a furnace in Ontario?
Not legally, unsolicited. Since March 1, 2018, Ontario's Consumer Protection Act has banned unsolicited door-to-door and in-home sales of furnaces, air conditioners, water heaters, and related services. A business can only contract in your home if you initiated the transaction, and contracts signed in the home carry a 10-day cooling-off period. Never sign financing for furnace equipment from someone who came to your door.
Is a high-efficiency furnace worth the extra money?
In Ontario's climate, usually yes. One Ontario installer's 2026 guide puts the gas savings at $300 to $500 a year for a 96–98% AFUE furnace versus an old 80%-efficiency unit, which suggests a 5-to-10-year payback on the upgrade and continued savings over a 20-plus-year furnace lifespan. The premium two-stage and modulating units also run quieter and hold temperature more evenly.
Should I get a gas furnace or a heat pump in Ontario?
A heat pump attracts far bigger rebates: Ontario's Home Renovation Savings program pays up to $2,000 toward an air-source heat pump for gas-heated homes (and up to $7,500 for non-gas homes), versus no rebate for a gas furnace itself (the bundled path's $250 figure is for air sealing). Many Ontario homeowners now install a cold-climate heat pump as the main heat source and keep a gas furnace as backup for the coldest days. Oil-heated homes get the largest heat-pump money of all: the federal Oil to Heat Pump Affordability program offers eligible Ontario households a free heat-pump installation valued at up to $25,000 through the IESO. Our heat pump guide covers the full 2026 rebate picture.
Sources
- LG Home Comfort, 2026 Ontario furnace replacement cost guide — Ontario installed ranges by tier, the basis for the headline numbers.
- Dynamic Heat & Cool, New furnace cost Ontario 2026 — Ontario gas installed ranges, the oil-furnace installed range ($5,500–$8,500), rural premiums, and the oil-to-propane/electric trend.
- Enercare, Ontario furnace buyer's guide — average high-efficiency gas install $4,295–$8,000.
- Urban Splatter, How much does a furnace replacement cost in Ottawa? 2026 price guide — Ottawa installed ranges.
- Colair, Furnace replacement cost in Ottawa 2026 — Ottawa oil-furnace installed range $4,000–$7,000.
- Constant Home Comfort, 2026 Ontario rebate overview — 2026 rebate picture.
- ClaimRebate, Home Renovation Savings program guide — Home Renovation Savings program detail.
- HPAC Magazine, Ontario restricts door-to-door sales — door-to-door ban and NOSI background.
- Natural Resources Canada, Canada Greener Homes Loan — loan closure October 1, 2025.
- Natural Resources Canada, Oil to Heat Pump Affordability program — participating provinces — Ontario OHPA terms: up to $25,000 no-cost installation, $250 bonus, tank removal covered, apply via IESO Save on Energy.
- Ontario Certification Registry, OBT-3 Oil Burner Technician 3 — OBT ladder, TSSA issuance, O. Reg. 213/01 and 215/01 basis.
- Home Renovation Savings, Energy assessment required upgrades — bundled-path air-sealing rebate and assessment requirement.