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How Much Does a Furnace Replacement Cost in Canada?

A new high-efficiency furnace typically costs $3,500–$7,500 installed in Canada, depending on your province, fuel type, and home size.

National Average
$5,200
Typical Range
$3,500 – $7,500

Cost by City

CityLowAverageHigh
Toronto, ON$3,800$5,500$8,000
Calgary, AB$3,500$5,000$7,000
Vancouver, BC$4,000$5,800$8,500
Montréal, QC$3,200$4,800$7,000
Ottawa, ON$3,600$5,200$7,500
Edmonton, AB$3,400$4,900$6,800
Winnipeg, MB$3,300$4,700$6,500

Prices are estimates in CAD based on typical residential jobs. Actual costs vary by scope and conditions.

What Affects the Cost?

Furnace efficiency (AFUE rating)
A 96% AFUE furnace costs $800–$1,500 more than an 80% model but saves 15–20% on heating bills.
Fuel type
Natural gas is most common and cheapest. Oil furnaces cost more to install and run. Electric furnaces are rare except in Québec where hydro is cheap.
Home size
Larger homes need higher BTU output. A 2,000+ sq ft home may need 80,000–120,000 BTU, adding $500–$1,000.
Ductwork modifications
If existing ducts need resizing or repair, add $500–$2,000.
Permit fees
Most municipalities require a permit for furnace replacement. Typically $100–$300.
Removal of old unit
Usually included, but confirm. Oil-to-gas conversions cost $1,000–$3,000 extra.

✓ Typically Included

✓New furnace unit and installation
✓Connection to existing ductwork and gas line
✓Thermostat compatibility check
✓Removal and disposal of old furnace
✓Initial startup and testing
✓Municipal permit (usually)

✕ Usually Not Included

✕Ductwork modifications or repairs
✕Thermostat upgrade (if needed)
✕Humidifier installation
✕Oil tank removal (if converting from oil)
✕Extended warranty beyond manufacturer's
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Canadian Considerations

In Ontario, furnace installers must be TSSA-certified (G2 or G3 gas fitter). The federal Greener Homes Grant may cover up to $5,000 for switching to a heat pump. Québec homeowners can access Chauffez Vert rebates. Always confirm your installer pulls the required municipal permit — skipping this can void your home insurance.

When to Hire a Pro

Always hire a licensed HVAC technician for furnace replacement — this is not a DIY job. Gas furnace installation requires certification by law in every Canadian province. A typical replacement takes 4–8 hours.

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Quick Price Summary

Low end$3,500
Average$5,200
High end$7,500

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