Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
A standard high-efficiency gas furnace installed in a Toronto house runs roughly $4,900 to $8,000 before 13% HST, based on one national installer’s published Ontario guide. There is no Ontario rebate for a gas furnace alone in 2027, but adding a heat pump earns up to $2,000 provincially plus a federal rebate opening in early 2027.
This guide is for Toronto and GTA homeowners whose furnace is old, noisy or already failing and who want a straight answer on what a replacement costs in 2027, what rebates still exist and whether a heat pump changes the decision. I also cover what an old furnace does to a sale, because that is where I see the cost show up most.
How much does it cost to replace a furnace in Toronto in 2027?
Plan on roughly $4,900 to $8,000 before tax for a standard high-efficiency gas furnace installed in an average house, then add 13% HST. That range comes from one of the few published price guides I could find from a national installer, Home Depot Canada’s furnace replacement guide, which lists Ontario installed prices for a 1,500 square foot home.
| Furnace in the guide | Efficiency and features | Ontario installed price range (before tax) | With 13% HST |
|---|---|---|---|
| Trane S9V2 | 96% AFUE, variable-speed blower, two-stage heat | $6,500 to $8,000 | $7,345 to $9,040 |
| Trane S9X2 | 96% AFUE, constant-torque blower, two-stage heat | $5,900 to $7,500 | $6,667 to $8,475 |
| Comfortmaker G9MVE | 96.5% AFUE, variable-speed blower, two-stage heat | $5,500 to $8,000 | $6,215 to $9,040 |
| RunTru A952 | 95% AFUE, variable-speed blower, two-stage heat | $4,900 to $7,900 | $5,537 to $8,927 |
Source: Home Depot Canada, “How Much Does It Cost to Replace a Furnace?”, Ontario column, checked 10 November 2026. HST column is my calculation. The page is undated and still mentions a federal loan that has since closed, so treat it as a rough guide, not a quote.
The guide says its prices include the furnace, standard materials and labour, a standard warranty and removal of the old unit, with disposal fees extra. Your real number depends on your house, which is why I would always get at least two written quotes.
What makes a furnace replacement cost more?
The same guide names the main cost drivers: the type of furnace, the size and layout of the home, and the condition of the insulation and ductwork. In practice, these are the questions that move a quote:
- Size. A bigger or leakier house needs more heating capacity. A proper heat-loss calculation, not a guess from the old unit’s label, protects you from paying for a furnace that is too big.
- Features. Two-stage burners and variable-speed blowers cost more up front and are quieter and steadier. They are comfort choices more than savings choices.
- Ductwork and venting. If ducts need changes, or the venting has to be reworked for a high-efficiency model, labour goes up.
- Air conditioning at the same time. Many people replace the furnace and the outdoor AC unit together. That is the moment to price a heat pump instead of a new AC, because a heat pump does the cooling and much of the heating.
What efficiency does a new gas furnace need in Canada?
Under Canada’s Energy Efficiency Regulations, a typical household gas furnace manufactured on or after 3 July 2019 must have an annual fuel utilization efficiency (AFUE) of at least 95%, according to Natural Resources Canada. AFUE is the share of the gas you buy that becomes heat in your home. A few special categories have lower minimums, such as some replacement furnaces for manufactured homes.
So in 2027 you are not choosing between “mid” and “high” efficiency for a standard house. Every new standard furnace is already high efficiency. The real choices are size, features, the installer and whether to add a heat pump.
How much will a new furnace save on your gas bill?
Less than most people expect. Here is a simple Toronto example using Enbridge Gas rates for the Toronto-area (EGD) rate zone from 1 October 2026. For gas used above 170 cubic metres a month, which is most winter use, the gas supply charge, cost adjustment, delivery and transportation add up to about 27.8 cents per cubic metre, or about 31.4 cents with HST.
| Scenario (home burning 2,000 m³ a year for heat) | Gas used after replacement | Gas saved | Approximate yearly saving |
|---|---|---|---|
| Old 80% furnace replaced with 95% | About 1,684 m³ | About 316 m³ | About $99 |
| Old 90% furnace replaced with 95% | About 1,895 m³ | About 105 m³ | About $33 |
Source: my calculation using Ontario Energy Board-approved Enbridge Gas (EGD rate zone) rates effective 1 October 2026, including 13% HST. The 2,000 m³ figure is an example, not a measured average. Gas rates change every quarter.
The lesson: you replace a furnace because the old one is unsafe, unreliable or past repair, not to cut the gas bill. If cutting the bill is the goal, insulation and air sealing usually do more, and they qualify for rebates.
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Are there rebates for a new furnace in Ontario in 2027?
Not for a gas furnace on its own, as of November 2026. The Home Renovation Savings program run by Enbridge Gas and Save on Energy does not list gas furnaces among its rebates. Here is what can lower the cost:
- Add a heat pump to the new furnace. An Enbridge gas customer who installs a qualifying cold-climate air-source heat pump gets $500 per ton, up to $2,000, and the program says the heat pump can be paired with a new or existing gas furnace. The furnace itself is not rebated.
- The federal National Heat Pump Rebate. Opening in early 2027, it pays $2,000, or up to $10,000 for households below median income, for eligible cold-climate heat pumps installed from 1 November 2026. Natural gas homes are listed as eligible, the old system does not have to be removed, and the installer should confirm the heat pump is sized to heat the whole home. Details are still being finalized.
- Toronto’s Home Energy Loan Program. HELP lists high-efficiency furnaces, boilers and air conditioners as eligible, with fixed rates from 3.83% (5 years) to 4.85% (15 years) until 31 December 2026, plus a 2% administration charge. The 20-year term needs a heat pump, solar, geothermal or windows in the project.
- Free help for income-qualified homes. Enbridge’s Home Winterproofing Program and Save on Energy’s Energy Affordability Program offer free insulation and draft proofing, and free heat pumps for some electric- or oil-heated homes. They do not advertise free gas furnaces.
The full list of what is available, including insulation and windows, is in my guide to heat pump rebates and home value in Toronto.
Should you replace your furnace with a heat pump instead?
It depends mainly on what you heat with and what you pay for energy. In a gas-heated Toronto house, a heat pump on its own usually costs more to run than a 95% furnace at late-2026 rates. A Natural Resources Canada test of a cold-climate heat pump at its Ottawa research houses found that it was far more efficient than gas equipment but still cost more to operate where natural gas is cheap. The federal heat pump page warns gas users the same way.
That is why many GTA owners choose a hybrid: a new furnace for the coldest days, plus a heat pump that handles cooling and milder heating days. You pay more up front, collect the heat pump rebates, and get a new air conditioner in the bargain. If you heat with electric baseboards, oil or propane, the math flips strongly toward a heat pump, and the provincial rebate rises to up to $7,500.
Should you buy, rent or finance a new furnace?
Buying outright is cheapest over time if you have the cash. Renting or financing through a private contract spreads the cost but can cost more overall and comes with buyout terms that matter when you sell. Ontario rules also changed how these contracts can be sold: since 1 March 2018, businesses cannot sell furnaces, air conditioners or water heaters at your home unless you started the contact, and if you invite them in and sign there, you get a 10-day cooling-off period.
If you already have a rental furnace or water heater and plan to sell, read what to do with rental furnace contracts before you list. Buyers and their lawyers will ask for the contract, and a high buyout can become a negotiation point.
Only use a TSSA-registered fuels contractor. The Technical Standards and Safety Authority says Ontario law requires furnaces and other fuel-burning appliances to be maintained by registered contractors who employ certified gas technicians, and that unregistered “trunk slammers” may use cheaper, unsafe materials. A gas furnace that is installed badly is a carbon monoxide risk, not just a warranty problem. Check the contractor in TSSA’s registry before you sign, and be wary of anyone who knocks on your door offering a “government” furnace program.
Should you replace an old furnace before selling your home?
Sometimes. GTA buyers have had more time and more choice over the past two years, and that shows in days on market for detached houses.
| Area | Detached median, Jan–Oct 2026 | Change vs 2025 | Avg days on market 2024 | Avg days on market 2026 |
|---|---|---|---|---|
| Mississauga | $1,225,000 | -5.8% | 22 | 31 |
| Brampton | $950,000 | -8.9% | 22 | 30 |
| Vaughan | $1,415,000 | -5.0% | 21 | 30 |
| Oakville | $1,625,000 | -3.0% | 24 | 33 |
| Toronto E04 (Scarborough) | $870,000 | -8.9% | 17 | 24 |
Source: TRREB MLS data via REALM, January–October 2026 vs the same period of 2025 and 2024. Median sold prices and average days on market, municipality or district level, not neighbourhood figures.
When buyers are not rushed, they read the inspection report closely. A furnace near the end of its life, or one that has not been serviced, becomes a request for a credit or a price cut. My notes on how buyers negotiate after an inspection show how those conversations usually go. A yearly service is also on my list of winter maintenance jobs for GTA homeowners.
If the furnace still works and you are listing within a few months, get it serviced, keep the invoice and price the house knowing the age of the equipment. A buyer will often discount more for an old furnace than a new one costs, but replacing it in a rush with whoever is free that week is not the answer either. If the furnace is failing, replace it, keep every document, and if you also need a new air conditioner, get a hybrid heat pump quote, because the rebates can narrow the price gap and the setup reads well in a listing.
What to do next
- Have a TSSA-registered contractor inspect the current furnace and tell you, in writing, whether it can be repaired.
- Get at least two written quotes, each with a heat-loss calculation, the model, its AFUE and what removal and permits include.
- Ask the same contractors to price a hybrid system with a cold-climate heat pump on Natural Resources Canada’s qualified list.
- If you add a heat pump, get Home Renovation Savings pre-approval first, and keep invoices for the federal rebate opening in early 2027.
- If you plan to sell within a year, talk to your agent before you sign anything, so the timing and the paperwork help your sale.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
How much does a new furnace cost in Toronto?
A standard high-efficiency gas furnace installed in a Toronto-area house costs roughly $4,900 to $8,000 before 13% HST, based on Home Depot Canada’s published Ontario price ranges for a 1,500 square foot home, checked in November 2026. Bigger homes, duct changes, venting work and premium features push the price higher, so get at least two written quotes.
Is there a furnace rebate in Ontario in 2027?
Not for a gas furnace on its own, as of November 2026. Ontario’s Home Renovation Savings program does not list gas furnaces. You can get up to $2,000 provincially if you add a qualifying heat pump to a new or existing furnace, and the federal National Heat Pump Rebate opening in early 2027 may add $2,000 or more.
What is the minimum furnace efficiency in Canada?
Most household gas furnaces manufactured on or after 3 July 2019 must have an annual fuel utilization efficiency of at least 95% under Canada’s Energy Efficiency Regulations, according to Natural Resources Canada. A few special types, such as some replacement furnaces for manufactured homes, have lower minimums. In Toronto in 2027, a standard new gas furnace is already high efficiency.
How much will a new furnace save on my gas bill in Toronto?
Usually less than $100 a year. Replacing an 80% efficient furnace with a 95% model in a Toronto home burning 2,000 cubic metres of gas a year for heat saves about 316 cubic metres, roughly $99 at Enbridge’s 1 October 2026 rates with HST. Going from 90% to 95% saves only about $33 a year.
Can I finance a furnace through the City of Toronto?
Yes. Toronto’s Home Energy Loan Program lists high-efficiency furnaces as eligible, with fixed rates of 3.83% to 4.85% for 5 to 15 years until 31 December 2026, plus a 2% administration charge. You repay through your property tax bill, the property needs an M postal code, and the loan stays with the house if you sell.
Who can install a furnace in Ontario?
In Ontario, furnaces and other fuel-burning appliances must be installed and maintained by a TSSA-registered fuels contractor using certified gas technicians, according to the Technical Standards and Safety Authority. Check the contractor in TSSA’s online registry before signing in 2027. Unregistered installers create carbon monoxide and insurance risks and leave you little recourse.
Can someone sell me a furnace at my door in Ontario?
Not unless you started the contact. Since 1 March 2018, Ontario’s consumer protection rules bar businesses from selling furnaces, air conditioners and water heaters at your home unless you initiated it. If you invite a company in and sign a contract there, you have a 10-day cooling-off period to cancel without penalty.
Should I replace my furnace before selling my house in the GTA?
Only if it is failing or unsafe. In January to October 2026, average days on market for detached GTA homes rose, for example to 31 days in Mississauga from 22 in 2024 (TRREB MLS data via REALM), so buyers look harder at inspection reports. A serviced older furnace with records is often fine; a failing one invites a price cut.
Is a heat pump or a new furnace better in Toronto in 2027?
For most gas-heated Toronto homes, a new furnace is cheaper to run on its own at late-2026 energy rates, while a heat pump adds efficient cooling and rebates. Many owners choose a hybrid with both. For homes heated by electric baseboards, oil or propane, a heat pump is usually the better choice, with Ontario rebates up to $7,500.
Sources
- Home Depot Canada — How Much Does It Cost to Replace a Furnace?
- Natural Resources Canada — Gas furnaces (Energy Efficiency Regulations)
- Ontario Energy Board — Enbridge Gas (EGD rate zone) rates effective 1 October 2026
- Home Renovation Savings — Help and support (heat pump eligibility)
- Environment and Climate Change Canada — National Heat Pump Rebate
- City of Toronto — Home Energy Loan Program (HELP)
- TSSA — Fraudulent Fuels Workers (Trunk Slammers)
- Government of Ontario — Rules for businesses entering into contracts at a consumer’s home
Related reading
- Biggest Condo Developers in Toronto: Track Records Buyers Should Check
- Is It a Good Idea to Buy a Condo in Toronto in 2027?
- Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
- Can You Buy a House With No Down Payment in Ontario?
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.
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