Signs, Costs & How to Choose the Right Unit

Replacing a furnace is one of the biggest home maintenance investments a Canadian homeowner will face — but it can also be one of the most rewarding when done right. Whether your current system is aging, inefficient, or has broken down in the middle of a frigid Alberta night,

knowing when and how to replace your furnace can save you time, stress, and money.

This guide covers everything you need to know about furnace replacement in Canada — from identifying the right time, understanding costs, to selecting the best model for your needs.

1. Is It Time to Replace Your Furnace?

A furnace doesn’t last forever. While many gas furnaces can run for 15–20 years, their performance and efficiency decline with time.

Warning Signs You Shouldn’t Ignore:

• Frequent and costly repairs (more than $500/year)
• Unusual smells (burning plastic or gas

leaks)

• Loud noises such as banging or screeching
• Inconsistent heating across rooms
• Furnace running constantly but not warming your home
• Higher-than-normal energy bills

If your unit is over 15 years old and showing multiple issues, replacement may be more cost-effective than continued repairs.

2. Average Furnace Replacement Costs in Canada (2024)

Costs depend on furnace type, home size, efficiency rating (AFUE), and installation complexity.

Furnace TypeUnit CostInstallation Cost (CAD)Total Estimated CostElectric Furnace$500–$1,200$1,500–

$3,000$2,000–$4,200Natural Gas Furnace$800–$2,800$2,000–$5,000$3,800–$8,000High-Efficiency Gas$2,500–$5,000$3,000–$6,000$6,000–$11,000Heat Pump System$3,500–$7,000$4,000–$8,000$8,000–$15,000+

Tip: Spring and summer are cheaper times for replacement since HVAC pros are less busy.

3. Types of Furnaces: Which One Is Right for You?

Natural Gas Furnace (Most Common in Canada)

• Best for cold climates
• Lower operating costs
• High efficiency options available (up to 98% AFUE)

Electric Furnace

• Lower upfront cost

• Higher electricity bills
• Suitable for milder regions or condos

Heat Pumps (Electric + Cooling)

• Dual-function (heat & cool)
• Environmentally friendly
• Rebates available, especially in provinces like BC and Ontario

Oil Furnace

• Rare, outdated, and being phased out

4. Factors to Consider When Choosing a New Furnace
5. a) Size & Capacity (BTUs)

Too small? It’ll struggle to heat your home.

Too big? You’ll waste energy.

Always get a professional load calculation.

1. b) Efficiency Rating (AFUE)

• Look for 90% or higher in Canada
• ENERGY STAR® certified models qualify for rebates

1. c) Modulating & Multi-Stage Burners

These adjust output for better comfort, lower bills, and quieter operation.

1. d) Smart Thermostat Compatibility

Modern furnaces can sync with smart thermostats like Ecobee or Nest to improve efficiency.

5. Hidden & Additional Costs

Besides the furnace unit itself, keep these in mind:

• Old unit removal: $200–$500
• Ductwork modifications: $500–$3,000 (if needed)
• Permits and inspections: $100–$500
• Upgrades (humidifiers, air purifiers): optional but can be integrated at lower cost when bundled

6. DIY vs. Professional Installation: What’s the Risk?

Furnace installation is NOT a DIY job.

Licensed HVAC technicians ensure:

• Safe gas connections and ventilation
• Compliance with Canadian building codes
• Eligibility for warranties and rebates
• Long-term energy savings

7. How to Prepare for Furnace Replacement

• Get 2–3 quotes from certified local HVAC companies
• Check rebates at nrcan.gc.ca and local utility providers
• Schedule replacement during spring/fall to avoid emergency costs
• Ask about financing if needed (many offer 0% interest plans)

8. How to Extend the Life of Your New Furnace

• Change filters every 1–3 months
• Schedule annual maintenance
• Keep vents and registers unblocked
• Use a smart thermostat to minimize runtime

Final Thoughts

Furnace replacement might seem daunting, but with the right guidance, it can be a smooth upgrade toward better comfort, lower bills, and a warmer home. Make an informed decision — not a rushed one — and you’ll enjoy efficient heat for the next 15–20 winters.

Need help choosing? Ask us and we’ll walk you through comparing models, rebates, and installation options.